Dubai’s Aramex Q4 profit up; warns of uncertain outlook
CEO says 2012 outlook uncertain; Aramex Q4 net profit of 57.2 million dirhams; Quarterly revenue up 18 pct to 682 mln dirhams
February 2, 2012 12:57 by Reuters
Dubai’s Aramex on Thursday warned of an uncertain outlook for the logistics firm in 2012 due to unrest in the Middle East and worries over the global economy, as it reported a 4 percent rise in quarterly profit.
Aramex made a net profit of 57.2 million dirhams ($15.57 million) in the fourth quarter, up from 55 million dirhams in the corresponding period in 2010, the company said in a statement to the Dubai bourse.
Revenue for the quarter reached 682 million dirhams, up 18 percent from 580 million dirhams in the prior-year period.
Profit for the year also increased by 4 percent to 211.5 million dirhams.
Uncertainty remains over the outlook for 2012 in light of sluggish global trade and instability in the Middle East, the company’s chief executive Fadi Ghandour said in the statement.
“Our performance for this year is expected to maintain this trajectory and we prefer to wait till the end of the first quarter to reassess our outlook for the rest of the year,” he added.
In January 2011, Aramex was forced to suspend its operations in Egypt during an uprising that ultimately ended former president Hosni Mubarak’s 30-year rule.
In December, the company paid $55.5 million from its internal cash balance for the acquisition of South African logistics firm Berco Express.
The deal was part of Aramex’ strategy to expand internationally and follows a recent joint venture with SinoAir in China and the acquisition of OneWorld Courier and In-Time Couriers in Kenya in the first quarter of 2011.
Shares of the firm were flat at 0628 GMT. ($1 = 3.6730 UAE dirhams) (Reporting by Praveen Menon; Editing by Matt Smith)