Agility, the Kuwait-based global logistics company, reported first quarter profit plunged 56 percent from a year ago because of costs incurred in restructuring its defense and government businesses.
The company, which lost large U.S. military contracts last year following allegations of overcharging, earned $28 million against $64 million in the first quarter of 2010.
Operating profit plunged more than 90 percent to $9.8 million from $69 million and revenue dropped 21 percent to $1.16 billion from $1.47 billion.
“After a year of adjustment in 2010, which included a transition away from government business, 2011 represents a new financial benchmark for Agility,” said Chairman and Managing Director Tarek Sultan.
Revenue in Agility’s core integrated logistics business increased by 12.3 percent in the first quarter with all regions posting growth, and the biggest gains in emerging markets.
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