General Dynamics prepares for leadership change

General Dynamics Corp. is counting on its transition strategy to ensure stability when Jay Johnson succeeds Nicholas Chabraja as the company’s new CEO July 1.

General Dynamics Corp. will undergo a change at the top July 1, when Jay Johnson takes over as chief executive officer from Nicholas Chabraja, who will retire from the position but remain chairman of the company.

Since the change at the helm of one of the country’s top defense and information technology contractors was announced a year ago, the company has gone to great lengths to ensure a smooth transition and alleviate any concerns from government customers, analysts and shareholders.

“We have a very experienced person coming in,” said Gerard DeMuro, executive vice president of General Dynamics’ Information Systems and Technology (IS&T) group. Johnson “has been aggressively preparing for his new responsibilities, [and] I believe he is as prepared as anyone could be when he assumes this new role.”

That belief is echoed outside the company, too. General Dynamics’ leaders have crafted “a very methodical approach to the transition,” said Kevin DeSanto, a director at investment banking firm KippsDeSanto and Co.

“It seems like they have put into place a real strategic and thoughtful transition strategy, and that should create a low-risk perception from investors watching” the company, he said.

Johnson joined General Dynamics in September 2008 and has served as a board member for the past six years. He is a former CEO of Dominion Virginia Power and a retired Navy admiral.

DeMuro said the IS&T group, which comprises four large units, has weathered the global economic storm without trouble and is expected to grow at a rate of nearly 8 percent this year. The group’s bedrock business capability is IT and network infrastructure management and support services, and it continues to win contracts in that area from civilian and defense customers.

For example, the FBI awarded the company a five-year, $83 million contract in May 2008 to provide IT management services at its headquarters and field offices. The group also landed a five-year, $62 million contract from the Homeland Security Department to build and maintain a next-generation network to enhance information sharing and collaboration with its domestic and international counterparts.

In addition, General Dynamics was one of 59 companies chosen to compete for $50 billion worth of IT services task orders in the coming decade through the Alliant governmentwide acquisition contract.

Although the competitive field is large, DeMuro said he believes the company will be a strong competitor because of the experience it gained from working on the GWACs that preceded Alliant.

The company also has a big stake in a number of weapons modernization programs under way at the Defense Department, such as the Navy’s Littoral Combat Ship, the Navy’s DDG 1000 Zumwalt-class destroyer and the Army’s Future Combat Systems.

Even if the final fiscal 2010 defense budget passed by Congress fails to provide full funding for some of those next-generation weapons programs, it will not have a serious impact on General Dynamics’ business from an earnings standpoint, DeSanto said.

“If the big-ticket items don’t go forward, then their existing programs will continue on and have a longer life cycle,” he said.

General Dynamics C4 Systems, which is part of the IS&T group, is the prime contractor for the Warfighter Information Network–Tactical (WIN-T) program, which is the Army’s next-generation tactical communications network.

It is also the prime contractor on the Handheld, Manpack, Small Form Fit radio portion of the Joint Tactical Radio System. The company is working on the first two increments of WIN-T and hopes to eventually receive approval to begin low-rate initial production, DeMuro said.

Although the company has plenty of federal business, it continues to look for fresh opportunities. It made a key IT services acquisition in June 2008 when it paid $225 million for ViPS Inc., which specializes in health care technologies.

The company also hopes that its lengthy résumé in infrastructure support services will help it capitalize on federal customers’ growing need for cybersecurity support.

”We think we are well-positioned to capitalize on [cybersecurity opportunities] given our long experience in critical infrastructure protection,” DeMuro said.

More stats on General Dynamics.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.