Second quarter operating profit at Agility was down 50 per cent on last year despite a three per cent rise in sales.
The group said it had to deal with the challenges of coming out of a global recession and the legal proceedings by the US government “which has had a deep impact on our Defense & Government Services business”.
Operating profit was $46m (21m Kuwaiti dinars) for the quarter on sales of £936m (428m Kuwaiti Dinars).
“In the face of uncertainty around the DGS business, the relative importance of the Global Integrated Logistics business has grown. GIL’s strategy remains the same, but timelines have accelerated. GIL continues to focus on driving growth in its core products of freight forwarding, specialties (project, chemicals, F&E and fuel logistics) and contract logistics across its network, with an emphasis on emerging markets,” it said.
“We expect net income to decline in the near term as the US government contracts expire, while GIL’s performance will begin to drive overall Agility results more directly.”