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Agility Profit Drops 84%, Misses Estimates Amid U.S. Army Overbilling Case
Agility (AGLTY) Public Warehousing Co., the Kuwaiti storage and transport company accused of overbilling the U.S. military, reported an 84 percent drop in profit as it had no revenue from "related parties."
Net income for last year declined to 25.1 million dinars ($91 million) from 156.4 million dinars a year earlier, the company said in a statement to the Dubai bourse today. The median estimate of three analysts was for a profit of 70 million dinars, according to data compiled by Bloomberg.
Agility, the Middle East’s largest storage and logistics company, was first indicted in November 2009 for allegedly overcharging the U.S. government on a multibillion dollar contract to supply food for troops in Kuwait and Iraq. U.S. District Judge Thomas W. Thrash Jr. ruled on March 28 that the company was properly notified by prosecutors of the charges against it, reversing an earlier ruling.
"An indictment against Agility DGS Holdings Inc., a U.S. affiliate of Agility, has been dismissed without prejudice by a U.S. District Court in Atlanta," the company said in the statement today. "Agility and one of its Kuwait affiliates remain the subjects of a legal action by the U.S. Department of Justice."
Agility’s board recommended 40 fils a share as cash dividend for 2010. The company didn’t give further details about revenue from "related parties."
The shares, which are cross-listed on the Kuwaiti and Dubai stock exchanges, rose as much as 4 percent to 390 fils and were trading at 380 fils at 10:22 a.m. in Kuwait City. The stock has lost 27 percent this year in Kuwait compared with a 9.9 percent decline in the benchmark Kuwait Stock Exchange Index. There are 1,000 fils to the dinar.
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