The logo of Miller Industries is seen on a component.

Without the military and government contracts of a year ago, Miller Industries Inc. reported a drop in both profits and sales in the second quarter from year-ago levels.

The Ooltewah-based towing equipment maker said Wednesday it earned $2.5 million, or 23 cents per share, on sales of $87.3 million in the three months ended June 30. A year ago with 22 percent of sales from one-time government contracts, Miller Industries earned $5.8 million, or 47 cents per share, on sales of $97.6 million. Company CEO Jeff Badgley said the market slowed this spring and "quickly became challenging. Against this backdrop, we are focusing on those areas that will drive sales, further reduce our cost structure, and position us for longer-term growth."