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Ecology & Environment lost $785,000 during the second quarter as the company’s pullback from riskier markets in the Middle East and China led to a 20 percent drop in revenues, the Lancaster-based environmental services firm said Tuesday.

E&E’s sales also were hurt by a drop in work from government agencies, along with a slowdown in its important energy and mining markets. The company’s subsidiaries in Brazil and Chile also experienced lower sales, mainly because of weakness in the energy and mining markets in those nations.

Those lower sales, which fell faster than the company could reduce its expenses, led to a loss that equaled 18 cents per share, compared with a profit of $1.9 million, or 45 cents per share, a year earlier.

E&E’s sales slid to $29.1 million during the quarter that ended in January, compared with $36.2 million a year earlier.

E&E in January completed a mammoth shake-up in its management ranks, culminating in the firing of Kevin Neumaier, the son of the company’s co-founder, as E&E’s president. His ouster was the final step in a series of moves led by the company’s other co-founders that shattered the 43-year partnership that had guided the firm.

The company’s chairman, co-founder Frank Silvestro, has blamed members of the Neumaier family, from the former chairman, the late Gerhard J. Neumaier, to his son, Kevin, and his nephew, Volcker Neumaier, for what he described as secretive and risky dealings in China that failed to pan out and led to the company taking a $7 million write-off last year. E&E had no revenues from either China or the Middle East during the second quarter.

Shares were trading down 47 cents, or 4.08 percent, at $11.05 Tuesday afternoon.

email: drobinson@buffnews.com