Agility, the Kuwait-based global logistics company, reported second quarter profit plunged 57 percent to $29.4 million from a year ago because of lost defense and business contracts.
The company, which lost large U.S. military contracts last year following allegations of overcharging, earned $1.2 billion, down 23 percent from the same period a year ago. Agility’s revenue grew 3.4 percent from the first quarter.
The company’s operating profit fell 51 percent to $36.8 million within the same period.
“We made hard choices last year and established a new financial baseline to start 2011. Our commercial logistics gains, combined with our drive to boost return on assets, manage cash conservatively and squeeze out additional cost are moving the company beyond lost government business into a new growth era,” said Tarek Sultan, Agility’s chairman and managing director.
Its commercial logistics revenue grew 2 percent year-over-year, and revenue grew in every region, with the largest gains in emerging markets in the Middle East, Asia, Eastern Europe and Latin America.