Elizabeth Leigh
General Dynamics CEO Phebe Novakovic said major restructuring within her company has led to backlog and margin increases despite reporting modest earnings early in her tenure, Washington Business Journal reported Wednesday.
Jill Aitoro writes Novakovic has been busy “right-sizing†the firm since she assumed the top post in January 2013, consolidating functions and reorganizing workflows and systems, as well as streamlining staff.
“We had a cost structure going into 2013 that was so high, we couldn’t win any orders,†Novakovic disclosed at an analysts’ call in midweek.
“We needed to get out and we did,†she added.
The report said two months ago, General Dynamics Bath Iron Works lost a multiyear warships deal to another contractor, a setback Novakovic had characterized as “a wakeup call†that urged her team to relook the costs of the company’s programs.
According to the CEO, restructuring efforts are showing results, particularly at General Dynamics U.K.
