Cubic Combines Defense Segments

Cubic Corporation (NYSE: CUB) announced effective today it has combined its two defense operating segments into a single segment called Cubic Global Defense (CGD) to better align its organizational structure with customer requirements, increase operational efficiencies and improve collaboration and innovation across the enterprise. The formation of CGD also supports the company's announcement to streamline its functions across the enterprise to improve profitability and competitiveness.

Cubic's defense business totals approximately $800 million in annual revenues and serves a diverse U.S. and international customer base concentrated in live, virtual, constructive and gaming training domains, leader and doctrine development, national security programs, special operations and secure communications in the C4ISR market. The consolidated CGD is comprised of six business units with more than 5,500 employees.

William J. Toti, former president of Cubic's Mission Support Services segment, has been named president of CGD. Prior to joining Cubic, Toti led a $1.3 billion business unit in Hewlett-Packard's Enterprise Services sector for the U.S. Navy and Marine Corps Next Generation Enterprise Network program. Prior to HP, Toti was vice president of the Mission Support Operations unit at Raytheon. He also served more than 26 years in the U.S. Navy.

"This organizational realignment strengthens our competitive position, enhances collaboration and eliminates redundant costs,” Toti said. "By combining the expertise previously available in two separate operating companies, we can now deliver higher quality to our customers in a more efficient manner, and we can pursue larger opportunities by leveraging significant past performance and technology credentials resident in the company."

Source: Cubic Corporation (NYSE: CUB)
Date: Feb 18, 2015