Cubic reports sales growth in defense systems business

Cubic said this week its global defense systems business saw sales grow during the company's most recent fiscal year.

The global defense systems business recorded sales in fiscal year 2017 of $529 million, up from $484 million the prior year.

Cubic attributed the growth to acquisitions, noting that sales from businesses acquired by the group in 2016 and 2017 reached $109 million during the year, up from $59 million the prior year.

The global defense systems unit saw annual profit reach nearly $19 million, up from a $17 million loss the prior year. Cubic said it benefited from the approval of a contract adjustment with the Navy for a virtual training system.

However, Cubic also said sales in its global defense services business declined. The unit recorded FY-17 revenue of $378 million, down from $391 million a year earlier.

The division's annual profit reached nearly $7 million, down from $11 million the prior year.

The unit's "sales and operating income for the fourth quarter and full fiscal year were lower primarily due to lower activity supporting Special Operations Forces training as well as decreased activity on U.S. Army contracts, other than the contract with the Joint Readiness Training Center," Cubic said. "In addition, certain contracts that were retained after re-compete were won in the first quarter of fiscal 2017 at reduced pricing."