Leidos profit sinks, top executive steps down

December 10, 2013

Reston-based Leidos, the company created by splitting McLean-based Science Applications International Corp. in two earlier this year, said Tuesday that the president of the company’s health and engineering segment is stepping down amid weakening earnings.

The company reported that revenue for the three-month period ended Nov. 1 fell about 15 percent to hit $1.4 billion. The company reported a $7 million loss in operating income for the quarter, as compared to a $100 million operating profit in the same period last year.

In the company’s health and engineering segment, the results were worse. Revenues fell 20 percent, as programs ended, fewer new programs began and hospital budgets suffered, according to the company. Operating income in the unit fell 165 percent, which Leidos said was in part attributed to charges the company took to write down the value of two of its commercial health acquisitions.

Joe Craver, the head of the unit, has stepped down, and Leidos said John Jumper, the contractor’s chief executive, will become acting head of the unit as the company searches for a new executive.

“The Board of Directors and Leidos executive management agree this segment will benefit from new leadership,” the company said.

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