Sunday 14 November 2010

Agility Net Income Drops 66% as U.S. Government Contracts End Amid Lawsuit - Bloomberg

Agility Public Warehousing Co. reported a 66 percent drop in third-quarter profit as the Kuwait-based logistics company faces charges in the U.S. of overbilling on supplies to American troops.

Net income fell to 13.89 million dinars ($49.5 million) from 40.6 million dinars, the company said in an e-mailed statement today. Revenue declined to 405.9 million dinars in the third quarter, from 413.6 million dinars a year earlier, Agility said.

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. The company had said it’s in talks to resolve legal issues with the U.S. Department of Justice and there’s no guarantee a settlement will be reached.

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