DeMuro to retire as leader of General Dynamics information systems
Business unit reported loss of $2B in 2012
- By Nick Wakeman
- Feb 12, 2013
Gerard DeMuro’s nearly decade long run leading General Dynamics Corp.’s information systems and technology group will come to an end on Feb. 28.
The company announced DeMuro’s retirement as executive vice president of the group. General Dynamics Chairman and CEO Phebe Novakovic will oversee the business until a successor is named.
A company spokesman declined to comment on the process for picking a new leader for the group, or whether any insiders were in the running.
DeMuro joined General Dynamics in 1999, when the company acquired GTE Government Systems. He was named president of General Dynamics Communications Systems at that time. He became president of C4 Systems in 2002, when that group was formed. In 2003, he was appointed executive vice president of information systems and technology.
The group had rough 2012 as it lost $1.2 billion in revenue for the year, falling to $10 billion from $11.2 billion in 2011. Operating earnings took an even bigger hit. DeMuro’s group reported a loss of $1.4 billion in 2012, compared to a profit of $1.2 billion in 2011.
The bulk of that loss was a down of $2 billion in value related to acquisitions made by the group. According to the investment bank Arson Capital Partners, the group has made 38 acquisitions since 1997, worth $8.1 billion.
During a call with analysts last month, Novakovic said the acquisitions process was “somewhat broken, and I will not venture back into that market until we have reestablished the discipline in this process.”
DeMuro’s retirement was announced 20 days after Novakovic made those comments. The company said he was leaving to pursue new professional opportunities.
“Jerry DeMuro has made significant contributions to General Dynamics over the past 14 years that have enhanced shareholder value and deserve our recognition. We wish him continued success in his future pursuits,” Novakovic said in a statement.
With his departure, all of the information systems businesses at Lockheed Martin, Northrop Grumman and General Dynamics will be under new leadership.
Linda Gooden at Lockheed Martin is retiring effective April 1, and Linda Mills at Northrop Grumman is now corporate vice president of operations for the company.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.