Blackwater executives say that they have unfairly become a symbol for all contractors in Iraq, and that the company is thus a target for those opposed to the war. It will continue guarding U.S. officials in Iraq, but its future will be focused on training, aviation and logistics.

"The experience we've had would certainly be a disincentive to any other companies that want to step in and put their entire business at risk," Blackwater founder and CEO Erik Prince told the Associated Press during a daylong visit to the company's North Carolina compound.

Company president Gary Jackson said, "Security was not part of the master plan, ever."

The company has made hundreds of millions of dollars defending U.S. diplomats in Iraq, one of several government contracts that earned Blackwater more than $1 billion since 2001.

It has been under intense scrutiny since September, when its security contractors opened fire at a crowded Baghdad intersection while responding to a car bombing. Seventeen Iraqis were killed, prompting congressional hearings and an FBI investigation.

In 2005 and 2006, security jobs - including protecting diplomats and helping to secure New Orleans after Hurricane Katrina - constituted more than 50 percent of the company's business.

Security work is down to about 30 percent of Blackwater revenue now, and Jackson said it would go much lower.

"If I could get it down to 2 percent or 1 percent, I would go there," he said, adding that the media have falsely portrayed much about that aspect of the company. "If you could get it right, we might stay in the business."

The Justice Department is expected to decide soon whether to bring charges against a handful of contractors involved in the Baghdad shooting. Blackwater itself is not a target of the investigation and has pledged its cooperation with the probe.

Company executives would not say whether they expected their contractors to face charges but said an indictment was not likely to affect the core business model.

"Indictment of any of the folks" involved in the incident "wouldn't be grounds for disbarment" from government contracts, said Andrew Howell, Blackwater's general counsel.

Blackwater's 7,000-acre compound offers training facilities that attract swarms of U.S. military, federal law enforcement and local officials each year.

The company also has expanded its aviation division, which provides airplane and helicopter maintenance and drops supplies into hard-to-reach military bases. A 6,000-foot runway is under construction, and a large map in the company's hanger shows units based across the world.

The decision to shift its business reflects not only the difficult year Blackwater has had but also that there is likely not as much growth opportunity in security work. The State Department recently renewed Blackwater's contract, but it is unclear what else is available for those services.