LONDON/WASHINGTON Jan 7 Britain's BAE Systems
Plc chose Jerry DeMuro to head its U.S. business,
pinning its hopes on the former General Dynamics
executive to steer the weapons maker through U.S. military cuts
that are expected to bite over the next decade.
DeMuro, who will begin as president and chief executive of
the U.S. unit on Feb. 1, will replace Linda Hudson, who
announced her retirement in August last year. BAE, which
announced the appointment on Tuesday, generates about 40 percent
of its total revenue in the United States.
Defense suppliers to the U.S. government face a challenging
time over the next decade, given $487 billion in planned cuts to
the U.S. military budget and additional sizeable reductions
mandated by Congress.
DeMuro, age 58, follows Hudson, 63, to BAE from U.S. weapons
manufacturer General Dynamics. He was previously executive vice
president and corporate vice president at General Dynamics's $11
billion information systems and technology group. DeMuro left
General Dynamics in February 2013 after being passed over for
company's top position, a job now held by Phebe Novakovic.
"His experience will be of immense benefit as the company
strives to maintain its strong performance in the United States
core defense market and increase its focus on new international
and commercial opportunities," BAE Chief Executive Ian King
At General Dynamics, DeMuro managed the acquisition and
integration of 22 companies, as well as 8 divestitures, with a
cumulative value of $5 billion, according to a fact sheet
compiled by BAE.
In its global business, BAE faced investor worries over its
growth prospects last year after the United Arab Emirates pulled
out of talks to buy 60 Eurofighter Typhoon combat jets in a $9.8
Hudson, the first woman to head a major U.S. defense
operation, said she worked closely with DeMuro at General
Dynamics for many years and called him "an experienced and
"Jerry is an excellent choice to take the helm of this
company that - thanks to your collective efforts over the past
several years - has established itself as a major player in
aerospace and national security," Hudson said in a blog posting
Hudson, who joined BAE in 2007, said she would remain on the
board of the U.S. unit as an outside director until April 2015.
"After many decades in this industry I have been through
good times and bad, seen spending go up and down, but the very
best people and companies adapt, endure and continue to move
forward to meet the needs of our customers," she said.
Shares of BAE ended down 1.2 percent in trading Tuesday on
the London Stock Exchange.