Cubic Corp.’s Earnings Decline in 1st Quarter

Cubic Corp. on Tuesday reported a drop in net income for the first quarter ended last Dec. 31 to $3.6 million from $3.9 million for the same period a year earlier.

At the same time, Chairman Walter J. Zable, speaking at the company’s annual shareholders meeting, forecast that sales and earnings for fiscal 1985 would be higher than in 1984, when the company earned $14 million.

Sales for the first quarter hit a company quarterly record of $71.4 million, compared to $64.8 million a year ago, and the backlog of unfilled orders increased to $220 million from the fiscal year-end record $213 million.

“With a strong business position entering fiscal 1985 and sales during the initial first quarter surpassing the prior year’s first quarter, we believe 1985 will be a prosperous period for the company,” Zable said.

An area where Zable said he foresees growth in 1985 is Cubic’s Western Data unit, which is bidding on a $150-million contract to supply computerized fare-collection devices to the New York City subway system.

Western Data is also completing negotiations with Ford Motor Co. to supply upwards of 4,800 computer terminals for dealer showrooms.

A Cubic spokesman said the contract value has not been publicly disclosed, but each terminal sells for “about as much as a new car.”

Shareholders reelected the board of directors and, in a maneuver designed to reduce the chance of an unfriendly takeover, approved a proposal to reincorporate in Delaware.

Cubic, with $39 million in cash and just $29 million in debt, has been mentioned on Wall Street as a candidate for a takeover or a leveraged buy-out.

Cubic also declared a regular semiannual cash dividend of 19.5 cents per share, payable March 29 to shareholders of record March 15.