Monday, October 26, 2009

Aramex third quarter net profit rises 23 per centto AED 41.7 million


Dubai, October 25, 2009: Aramex (DFM: ARMX), the global logistics solutions provider, announced today its financial results for the three months ending September 30, 2009. The company declared a net profit of AED 41.7 million for the period, an increase of 23 per cent compared to AED 33.9 million in the corresponding period of 2008. Revenues for the third quarter of this year stood at AED 487.6 million, a decline of 11 per cent compared to AED 545.7 million in the same period last year.

Net profit for the first nine months of 2009 climbed 24 per cent to AED 134.8 million, compared to AED 108.5 million for the same period in 2008.
The decrease in the company’s revenues was primarily a result of a marked reduction in global freight forwarding activity, resulting in a decline of 20 per cent in freight revenues across the network. Third quarter revenues were also negatively impacted by the extended number of public holidays and reduced business hours, including those on account of Ramadan and Eid holidays in the Middle East and North Africa region during the period.

The financial results announced today by Aramex are in line with company expectations, and are reflective of similar trends in the first two quarters of this year.

“In spite of the extremely challenging economic conditions that have prevailed during the first nine months of this year, impacting growth in our revenues, we have consistently announced double-digit increases in our net income quarter after quarter,” said Fadi Ghandour, Founder and CEO of Aramex. “This consistency is testament to the resilience and flexibility of our asset-light business model, and the entrepreneurial and innovative thinking of our people.

“We continue to review expansion opportunities in underserved markets, especially in Africa and Central Asia,” Ghandour said. “As Aramex adjusts its long-term growth strategy in line with evolving market dynamics, we are also determined to upgrade and expand our existing logistics infrastructure in core markets.”

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