Kuwait-based global logistics company, Agility has reported a drop in first quarter net profit by 52 per cent from a year ago to KD17.5 million (US$60.1 million) and warned future earnings will suffer from the loss of US military contracts in the wake of fraud charges. Revenues during the period fell 14.4 per cent to KD403 million as compared to the previous quarter.

Agility, which has been accused of over-charging the US military during nearly a two-year period under contracts to supply US$8.5 billion of food to American troops in the Middle East, said 2010 will be a “year of transition,” as the military contracts historically contributed 25-35 per cent of Agility’s annual revenue. Agility said it will accelerate plans to grow its Global Integrated Logistics business which has grown in importance since the uncertainty over its US government contracts.