Cubic Corp. Lists Record Sales Despite B-1B Setback

Despite losing about $18 million in sales and $563,000 in profits from a canceled Rockwell International contract for work on the controversial B-1B bomber, Cubic Corp. on Friday reported record sales and slightly increased earnings for the year ended Sept. 30.

Earnings for the fiscal year rose 5%, to $14.7 million, while sales increased 21%, to a record $331.7 million.

Fourth-quarter earnings dropped 11% to $3 million but sales increased 21% to $90.6 million in the fourth quarter, the company said.

Fourth-quarter results included an $18-million reduction in sales and a $563,000 cut in profits from Rockwell’s cancellation in November of Cubic’s Defense Systems Division contract to develop three B-1B bomber trainer programs.

Pittsburgh, Pa.-based Rockwell relocated the programs to its Lakewood, Calif., facility in an attempt to cut costs and improve production schedules.

All but five of the 200 Cubic employees working on the programs were absorbed into the company’s 4,400-member work force.

Cubic’s new bookings reached a record $348 million, up 15%, while the backlog of unfilled orders totaled a record $228 million, up 7%.

Because of the record backlog, Cubic expects to “report strong revenue growth through 1987,” according to President Walter J. Zable.

“New business in our three major markets--defense electronics, passenger elevators and transit fare collection--is strong and will continue that way through the remainder of the decade,” Zable said.