Cubic Corp. reported that net income fell to $799,000 for the fourth quarter ended Sept. 30, down from $2.6 million during the previous fourth quarter. Revenue rose by 6.6% to $96.6 million, up from $90.5 million during the previous fourth quarter.
Cubic blamed the income drop on "product improvement costs" at the recently acquired Electro-Optical Division in Teterboro, N.J. Cubic also increased insurance liability reserves for its elevator business, according to Chairman Walter Zable.
The fourth-quarter profit downturn "is only temporary," according to Zable, who expects "earnings and sales to continue to grow at a very respectable rate in fiscal 1988, due to our strong backlog."
Net income for the year ended Sept. 30 was $7 million, up from $1.1 million during the previous fiscal year. Revenue rose 6% to $357 million, compared to $337 million during the previous fiscal year.