Road haulier Wincanton (LON:WIN) blamed problems in its Pullman vehicle maintenance business for falling half-year profits.
Wincanton said losses in the Pullman arm had spoiled a strong performance by its contract haulage business.
Pullman made losses as a couple of problematic home shopping contracts approached their end, which reduced the group's overall underlying operating margin to 4% from 4.5% a year ago.
Chief executive Adrian Colman said other contracts held by the division were fine. "We didn't get the commercials right on those two contracts but we put a ring-fence around them and they expire in this financial year," he said.
Following the sale of Wincanton's record management business, it also hopes to save money from integrating Pullman's activities more closely with the contract logistics business and its inbound container operation.
But the contract business was a highlight. Business wins in the division included a five-year deal to manage B&Q's distribution centres and a three year agreement for transport logistics with Halfords.
Wincanton is also expanding services for B&Q to include home delivery services for its kitchen, bedroom and bathroom products.
It also renewed contracts with long-standing customers such as food groups HJ Heinz and Dairy Crest.
The group is also shipping some of its container business from ports to inland terminals on rail, reducing road congestion.
Colman said the UK economy was "stable and just balanced towards being positive", although it was not yet in "haymaking" territory.
He said business with the big supermarkets had been more stable following a period of management upheaval at the likes of Tesco and Morrisons.
The diversity of the sectors handled by the contract logistics business also enabled it to withstand downturns in any one particular area, he said.
Shares in Wincanton fell 5p or 2.4% to 200p.
Cantor Fitzgerald, which has a 'buy' recommendation on the stock, said the recovery at Pullman seemed to be on track.
"Wincanton continues to trade at a discount to the wider European logistics sector and close peers. We reiterate our 'buy' recommendation and target price of 220p," the broker said.