August 16 - Second quarter results for 2010 continue to reflect a pivotal year for Agility as the US troop drawdown in Iraq continues and some of its large US government contracts enter their final option year.
As a result of the reduction in Defense & Government Services (DGS) business, the Swiss-based Global Integrated Logistics (GIL) business has grown in importance to the group's bottom line.
GIL business, which includes heavy lift and project activity, continues to focus on driving growth in its core products of freight forwarding, specialties (project, chemicals, F&E and fuel logistics) and contract logistics across its network, with an emphasis on emerging markets. In addition, in the face of this new reality, GIL is increasingly focused on cost and working capital management.
GIL overall revenue in the second quarter of 2010 was USD 1 billion, a 23 percent increase over the same quarter in 2009. Group revenue in Q2 was USD 1.4 billion. The growth is a reflection mainly of the increase in both the overall freight forwarding market over the same time frame in 2009 and additional customer wins.
Net revenues margins for GIL in Q2 of 2010 stand at 23.8 percent compared to 31.8 percent in Q2 of 2009, a net decline of 8 percent. This decline in margins is a result of two main factors: increased price competition resulting in industry-wide erosion of margins; and a greater demand in air and sea products, which have lower margins than contract logistics.
