Cubic (NYSE: CUB) has appointed Bill Toti, formerly president of the mission support services unit, as president of the new global defense segment that was formed as part of the One Cubic business realignment initiative.
The company said Wednesday Cubic Global Defense consolidated the defense systems and mission support services businesses to streamline operations and drive profitability and competitiveness.
Toti, a U.S. Navy veteran who has also worked at Raytheon (NYSE: RTN) and Hewlett-Packard (NYSE: HPQ), stated in a separate announcement that the realignment works to facilitate efficiencies, collaboration and future business opportunities for Cubic.
Cubic’s defense organization business has nearly $800 million in revenue and has nearly 6, 000 employees who provide training, doctrine development, special operations, national security and communications services for C4ISR programs, the company said.
It added that the One Cubic initiative also includes the consolidation of the corporate- and segment-level functions for supply chain, manufacturing, information technology, finance and human resources.
These changes are part of preparations to deploy a new enterprise resource planning system in fiscal 2016 and efforts to generate up to $16 million in pre-tax savings annually, Cubic said.
“[The] restructuring announcement reinforces our commitment to improving the business by eliminating redundancies to create a more efficient and responsive organization, ” said Bradley Feldmann, president and CEO of Cubic and an inductee into Executive Mosaic‘s Wash100 for 2015.
The company reports that it anticipates a neutral impact to fiscal 2015 earnings per share resulting from the reorganization.