KUWIAT CITY - November 15, 2011 - Agility (AGLTY), a leading global logistics provider, today announced financial results for the third quarter of 2011, reporting a net profit of KD 8.05 million and earnings per share of 8.04 fils for the third quarter.
Revenue and net profit fell by 19% and 42%, respectively, from the same period last year mainly as a result of lost defense and government business. Agility's commercial logistics business has also been impacted by volatility in the market and a softening of volumes in Q3 of this year.
"Overall, we are making steady progress in 2011. We are continuing to grow our commercial business, remain committed to curtailing costs to meet the needs of the current business environment, and are increasing efficiencies in how we operate," said Tarek Sultan, Chairman and Managing Director of Agility.
"That said, all signs point to challenging conditions in the global economy as we move towards 2012. Global growth forecasts are trending downwards and we are already seeing the impact in our commercial business. We will thus continue to exercise discipline in our cost structure and cash management, as we simultaneously move forward with our growth and transformation strategy," Sultan added.
Q3. 2011 v Q3, 2010
Figures in the table above have been rounded
· Q3 results reflect changes to establish a new financial baseline set at the start of 2011.
· Overall, Global Integrated Logistics (GIL) is growing by adding customers, expanding existing accounts, and transforming its operating platform to execute more efficiently. For the full nine months of 2011, GIL revenues excluding military contracts have increased by 2.2%.
· Market volatility and softening volumes have contributed to lower GIL revenues in Q3 of 2011 as compared to the same period in 2010.
· Agility’s Infrastructure group of companies continue to be strong contributors to our revenues.
· Agility continues to cut SG&A costs, with year-to-date reductions of 21% over the same period last year, demonstrating its resolve to maintain financial discipline.
· Agility has continued to focus on strong cash management and control of net working capital.
Agility’s Core Business: Global Integrated Logistics
Revenue for Agility Global Integrated Logistics (GIL) in the third quarter of 2011 was KD 297 million.
Despite uncertainty in world markets and the corresponding impact on trade volumes, Agility's investments in emerging markets continue to be an important competitive advantage and contributor to company revenue. Some examples of customer acquisitions in emerging markets this quarter include:
- A five-year contract by Henkel China to be the exclusive logistics partner for a mega project to streamline Henkel’s manufacturing in China
- A five-year contract by Colgate Palmolive to manage its 3PL warehousing and supply chain at Agility's multi-user facilities in Karachi, Lahore and Islamabad in Pakistan
Agility also announced a supply chain initiative with Nokia to use technology to reduce transport costs, end-to-end transit times and carbon emissions, on shipments originating from Hong Kong and mainland China this quarter.
GIL is adjusting its cost structure to mitigate against the risk of a global economic slowdown. GIL is also transforming core operations processes through technology and other initiatives.
Agility’s Infrastructure Group: Logistics-Related Businesses
Agility’s Infrastructure companies contributed KD 38.86 million to Q3 revenue. Revenue grew KD 2% from Q3 in 2010, excluding government-related business.
Agility’s Real Estate business remains the main contributor to the Infrastructure companies’ revenues, but other entities within this group have also shown healthy growth in the past several years. Agility anticipates that actions taken this year to leverage the potential of these companies will result in even stronger future growth.
Recap of Financial Performance for Third Quarter 2011
· Agility’s Q3 revenue was KD 330 million, a 19% decline from Q3 2010.
· Q3 operating profit was KD 4.3 million, Q3 net profit was KD 8 million, or 8.04 fils per share.
· Total Global Integrated Logistics (GIL) revenue was KD 297 million in Q3. This is 4% lower compared to Q3 2010. However, excluding revenues from Government contracts GIL’s revenues only decreased by 1.66%.
· Agility’s Infrastructure companies contributed KD 38.86 million to Q3 revenue. Excluding government revenues, the group has shown a 2% growth compared to Q3 2010.
· Agility closed Q3 with KD 888 million in equity, KD 1.4 billion in assets and KD 36 million net cash.
"Agility will continue to act aggressively to grow revenue organically, improve return on investment, manage working capital and cash, and strengthen yields on core operating assets,” said Tarek Sultan. “We will also continue to transform our operations and streamline our organization, structure, and processes in order to get leaner and gain efficiencies. Despite uncertainty in global markets, we believe these actions, in conjunction with the investments we have made in fast-growing emerging markets, will continue to position us for future growth and success."
From its roots in emerging markets, Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed countries and emerging economies alike. A publicly traded company, Agility is one of the world’s leading providers of integrated logistics with close to $6 billion in annual revenue and more than 22,000 employees in 550 offices across 100 countries.
For more information about Agility, visit www.agilitylogistics.com.