Agility’s net profit in the three months to September fell to 13.9 million dinars ($49.5 million), it said on Sunday.

The company was dropped from supplying food to the US Army in Iraq, Jordan and Kuwait after being accused of overcharging. It held contracts with the US military worth $8.5 billion spanning more than three years.

“Agility’s decline in profit is a result of it lacking new contracts in which through it could have made up the loss from the US military contract,” said Mohammed Al-Tarrah, chairman of the Kuwaiti Traders Society. Agility has a long history in civil activities and can make up the loss of profit through concentrating on this field, he said.

Net profit figure came slightly under forecasts. For full year 2010, the company was looking at a potentially lower number compared with 2009, its chairman told Reuters in October.

“Kuwait has work because of the development plan and has giant import and logistic operations that the company could benefit from,” said Naser Al-Nafisi, general manager of Al-Joman Center for Economic Consultations. Potential projects in Saudi Arabia and Qatar, which both enjoy robust economic growth, could offer similar project opportunities, he said.

Agility delayed the release of 2009 results in April, pending clarity on negotiations with US authorities over fraud charges.

Agility, formerly Public Warehousing Co. K.S.C., is in talks to resolve an indictment accusing it of overcharging the US Army on supply contracts in Iraq, Jordan and Kuwait.

If convicted, the company would face a fine of twice the gains it realized or twice the loss to the United States.

“We are trying our best to resolve this matter amicably,” chairman Tarek Sultan said, adding the company’s legal position was “very strong.”