Canada-based flight training systems provider CAE (NYSE: CAE) has named Nick Leontidis, a 36-year company veteran, as chief operating officer as part of senior leadership changes meant to enhance execution and synergies between the company’s defense and security and civil aviation business segments.
The company said Tuesday Leontidis will oversee CAE’s civil and defense business segments as COO and work with five profit and loss leaders, including Jason Goodfriend, interim president and COO of the U.S. defense and security arm, and Marc-Olivier Sabourin, division president of defense and security, international.
Leontidis most recently served as group president of CAE’s civil aviation business.
His career at CAE included time as executive vice president of strategy and business development, VP of sales and marketing, EVP of simulation products and EVP of customers.
Defense Business Restructuring
CAE has decided to rebaseline its defense business segment as part of efforts to improve execution, manage risks and drive the business for future profitability.
The move comes as the company’s defense business recorded a $568 million impairment of goodwill, $90 million in unfavorable contract adjustments and a $35.7 million impairment of related intangible assets associated with legacy contracts.
“The impairments and the accelerated risk recognition on the Legacy Contracts are a disappointing but necessary step to account for the programmatic risks we previously identified and provide a clearer path to margin improvement amid compelling secular trends for Defense,” said Marc Parent, president and CEO of CAE.
