Agility profit hit by lost government business

Agility profit hit by lost government business    Logistics company Agility said Monday its second quarter net profit fell 57 percent to about $29 million, due to 'lost defense and government business.'
   Revenue fell 23 percent to $1.2 billion. Operating profit in the second quarter was $37 million, though the company didn't provide comparable figures for the second quarter 2010.
   Commercial logistics revenue — the company's global integrated logistics, excluding U.S. government contracts — grew 2 percent from the same quarter in 2010, the company said.
   'Revenue grew in every region with the biggest gains coming from emerging markets in the Middle East, Asia, Eastern Europe and Latin America, which are the key to Agility's long-term growth,' Agility said.
   'We see growth in our core commercial business and reason to be upbeat about the investments we've made in fast-growing emerging markets. Our base of commercial customers is expanding. At the same time, we are transforming operations and continuing to streamline our organization, structure and processes in order to get leaner and gain efficiencies. Fresh initiatives intended to grow revenue and reduce costs should produce solid gains in 2012.'
   Agility's Defense & Government Services group lost the ability to rebid for several massive U.S. defense contracts after the government prosecuted its Kuwait-based parent, the Public Warehousing Co., for fraudulent overbilling. The case also prevents Agility from seeking other government work. Agility is contesting the case on procedural grounds and says it did not do anything improper.