William B. Cassidy, Senior Editor | Apr 03, 2012 11:54AM EDT
Global logistics provider Agility increased its net profit 8 percent in 2011 to approximately $97 million, despite a drop in revenue to $4.8 billion.
Agility’s revenue declined 17 percent in 2011 because of a loss of defense and government business, the Kuwaiti company said.
The company, the largest supplier to the U.S. Army during the Iraq war, faces charges in the U.S. that it defrauded the military over multibillion contracts.
Agility pleaded not guilty to those charges last year and on Feb. 21 asked a U.S. judge in Atlanta to dismiss the case, claiming the U.S. has no proof of the allegations.
In the fourth quarter, Agility posted a net profit of approximately $12.6 million, compared with an $88 million net loss in the year-ago period.
Fourth quarter revenue shrank 5 percent to approximately $1.23 billion.
The logistics and warehousing provider is shifting focus to what Tarek Sultan, its chairman and managing director, called its “core commercial business.”
“We are a different company today than we were a year ago, and we consider 2011 a new financial baseline against which we will measure future performance,” he said.
Agility said it sold the bulk of its vehicle fleet in the Middle East, freed up warehousing space for new customers and converted working capital to cash.
“Having undergone some heavy lifting in terms of restructuring over the last two years, the company anticipates solid gains in 2012,” Sultan said.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc.