General Dynamics CEO has no plans to reshape company's portfolio
WASHINGTON (Reuters) - Phebe Novakovic, the new chief executive of General Dynamics Corp (GD.N), said she was not a big fan of some acquisitions made by the company in recent years, but was not looking at divestments or reshaping the company's portfolio at the moment.
She said the company's internal process for acquisitions had been "somewhat broken," but that process would be revamped going forward and the business divisions were slated to move forward with the companies acquired under a revamped business plan.
She said the company had carried out a major review of all business areas aimed at setting more realistic goals, and she was upbeat about the prospects for expanding margins in 2013 and future years, despite fairly conservative guidance issued Wednesday.
She said the company aimed to focus on the fundamentals of performing on existing contracts, as well as improving margins and earnings, and had no plans to "chase revenues."
The company's information systems business, which reported big charges in the fourth quarter, had probably seen the worst of pressures, while the combat systems business expected big foreign orders in the first quarter, Novakovic said.
(Reporting By Andrea Shalal-Esa; Editing by Bernard Orr)