Agility's profits drop after losing logistics contracts

The loss of a multibillion-dollar contract with the US government was responsible for a major decline in earnings at Agility, as the region's biggest logistics company reported a 66 per cent drop in third-quarter profits.

The company, based in Kuwait, is the region's largest logistics firm. It lost lucrative contracts to supply food to US troops in Kuwait, Iraq and Jordanafter an indictment against it was issued last year.

The company was accused of overcharging the US government for the supply contracts. After the allegation of fraud, Agility lost its position as the main logistics supplier to the US army in the Gulf. Contracts with the US government reportedly contributed up to 35 per cent of Agility's annual revenues.

In April, the Dubai logistics company Anham was awarded a US$2.2 billion (Dh8.08bn) contract to handle the work after the US government replaced Agility. The US army's contracts with Agility were worth a reported $8.5bn.

The company and the US authorities are in discussions over the dispute. According to a report issued in September, a US magistrate said US prosecutors failed to follow the correct procedures when they indicted the Kuwaiti company. The magistrate said Agility was not properly notified about the charges made against it.

Agility's net income for the third quarter fell to 13.89 million dinars (Dh181.5m), from 40.6m dinars in the same quarter last year. Revenue declined to 405.9m dinars, from 413.6m dinars a year earlier.

"One segment of Agility's business has disappeared, which is the US army contracts, so that is why we are seeing comparable decline in the quarter," said Yazan Abdeen, a fund manager at ING Investment Management in Dubai.

The share price of Agility, which is listed on the Kuwait Stock Exchange, fell by 5.5 per cent in the month leading up to the earnings statement. The stock fell by 3.7 per cent last Thursday alone, closing at 510 fils.

"This expected decrease in profitability and revenue is attributable to the challenges facing Agility's defence and government services business," the company said in a statement quoted by Bloomberg.

"Major US government contracts wind down and the company is unable to replace them with new government business due to the legal case with the US government," the statement added.

Tarek Sultan, the chairman of Agility, said "although we anticipate continued challenges through the middle of 2011, we believe that we will emerge as a stronger and more flexible company".

Next year would be "difficult", Mr Sultan was reported as saying last month. The company is expected to be seeking private-sector contracts following the loss of business from the government sector.

Mr Abdeen said Agility would look east as it sought to increase its profits and replace lost business. "The company has become more active in initiating new streams of revenues. They have a very talented management," he said.

"Their new direction now is to raise money from Asia and I would expect Agility's new focus will offset the loss of business from the US army."

*with reporting from Hadeel al Sayegh

bflanagan@thenational.ae

halsayegh@thenational.ae

The specs

Engine: 2.7-litre 4-cylinder Turbomax

Power: 310hp

Torque: 583Nm

Transmission: 8-speed automatic

Price: From Dh192,500

On sale: Now

COMPANY PROFILE

Name: Almnssa

Started: August 2020

Founder: Areej Selmi

Based: Gaza

Sectors: Internet, e-commerce

Investments: Grants/private funding

10 tips for entry-level job seekers

Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.

Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz

Important questions to consider

1. Where on the plane does my pet travel?

There are different types of travel available for pets:

Manifest cargo
Excess luggage in the hold
Excess luggage in the cabin

Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.

2. What is the difference between my pet traveling as manifest cargo or as excess luggage?

If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.

If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.

3. What happens when my pet arrives in the country they are traveling to?

As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.

If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.

If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.

4. How long does the travel paperwork and other travel preparations take?

This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.

In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.

5. What vaccinations does my pet need to travel?

Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.

Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.

Source: Pawsome Pets UAE