Thursday, 2 February 2012 at 10:56, Reuters, Dubai
Aramex paid $55.5m from its internal cash balance to acquire South African logistics firm Berco Express. (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 per cent rise in quarterly profit.
Aramex made a net profit of Dh57.2 million ($15.57m) in the fourth quarter, up from Dh55m in the corresponding period in 2010, the company said in a statement to the Dubai bourse.
Revenue for the quarter reached Dh682m, up 18 per cent from Dh580m in the prior-year period.
Profit for the year also increased by four per cent to Dh211.5m.
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 $55.5m 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.
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