The Kuwait-based logistics and infrastructure company Agility said it had a net profit of 11.24 million Kuwaiti dinar ($40 million) in the first quarter of 2014, 11 percent more than in the same 2013 period.
Revenue for the quarter was 314.28 million dinar, 11 percent less than in the same 2013 period.
“The infrastructure companies started the year on a strong note, posting healthy revenue growth,” said Tarek Sultan, Agility’s chief executive officer.
He said the performance of the company’s global integrated logistics (GIL) business during the quarter was “more mixed. On one hand, GIL continues to make progress in transforming its underlying operating platform, sales and commercial strategy, and maintaining ongoing cost discipline. On the other hand, top line growth is challenged by market conditions that are affecting the industry overall. Going forward, top line growth within GIL is an important focus area.”
Revenue for Agility’s logistics business in the first quarter of 2014 was 253.3 million dinar, a decrease of 15 percent from the first quarter of 2013. The drop in revenue is attributable to several factors, including difficult market conditions that have led to rate deterioration despite volume increases.
"The drop was partially mitigated by better procurement in the freight business, which led to margin expansion from 21 percent in the first quarter of 2013 to 23 percent in this quarter," the company said.