LOS ANGELES CPI Aerostructures Inc. has named Douglas J. McCrosson president and chief executive officer effective March 6, the company said in a statement.
McCrosson replaces Edward J. Fred, who resigned for "personal reasons" but will remain with the company in an advisory capacity until May 16 and as a consultant until Nov. 16 next year, CPI Aero said.
McCrosson, who also was appointed to the companys board of directors, joined CPI Aero as director of business development in 2003 and had been chief operating officer since January 2010.
The Edgewood, N.Y.-based aerospace contractor reported a 34.2-percent decline in net income for the fourth quarter due to lower revenue on government prime contracts and subcontracts, partially offset by "slightly higher" revenue from commercial subcontracts, McCrosson said in a statement accompanying the companys earnings report.
Revenue from government subcontracts fell 2.7 percent in 2013 to about $54.9 million largely due to a "marked decline" in military fixed-wing business, McCrosson said.
Commercial subcontracts rose 0.4 percent to $26.8 million in 2013 due largely to growth in business jets, particularly on programs with Wichita, Kan.-based Cessna Aircraft Co. and Brazils Embraer SA, which are "emerging from the development stage," he said.
The companys revenue on government prime contracts declined in 2013 as work on its largest program in the segment, Bethesda, Md.-based Lockheed Martin Corp.s C-5 military transport, is nearly complete.
CPI Aeros backlog as of Dec. 31 rose 10.1 percent from a year earlier to $431.4 million, buoyed by a $24.5-million increase in commercial aerospace programs and a $15.1-million increase in military programs.