Cubic reports record sales, net income for fiscal 2012

Cubic Corp. reported a strong fiscal 2012, ended Sept. 30, seeing a number of increases, including record sales and net income.

Sales were at $1.4 billion, a 7 percent increase over its $1.3 billion in fiscal 2011. The increase was due to a 20 percent growth in Cubic Transportation Systems.

Net income was $91.9 million in fiscal 2012, up from the previous year’s $83.6 million. The year-over-year rise was due to its improvements in operating income, the company said.

Performance-wise, fiscal 2012 was a very positive year for the company, Cubic said; however, it anticipates a more challenging 2013, mentioning its defense business and the impending Defense Department budget cuts.

In addition to the cuts, Cubic mentioned an increasingly competitive defense services market, the result of which might cause the company’s defense business to have lower profit margins in 2013 than it did in fiscal 2012.

It is unclear as to which programs will be most affected by these factors, but the fact that roughly half of Cubic's defense systems business was international for the last few years should help lessen the incoming market stresses, the company said. Despite the uncertainties it listed, the company was confident in its long-term prospects of growth.