Kuwait’s Agility sees its second quarter profits fall 57 per cent

KUWAIT’S Agility, the logistics firm facing US fraud charges, posted a 57 per cent drop in second-quarter net profit, but still slightly beat forecasts.

Net profit in the last three months was 7.83m dinars (£17.6m), the company said in a statement, down from 18.09m dinars a year earlier.

Analysts had forecast Agility’s second-quarter earnings would fall to an average of 7.4m dinars.

Agility blamed the drop in earnings and a 23 per cent fall in quarterly revenue to 331m dinars on “lost defence and government business.”

The company said it expects “solid gains” in 2012 as its investments in emerging markets were helping the growth of its core business, and its customer base was expanding while operations were being streamlined.

“Fresh initiatives intended to grow revenue and reduce costs should produce solid gains in 2012,” Agility said without giving details.

Last month, a US district judge ordered the arraignment of Agility in the latest step of the prosecution of the logistics company over charges that it defrauded the US Army in multibillion-dollar contracts.