GE restructures business
29 July 2008
GE has restructured its operations into four divisions from six, with
healthcare now joined with Aviation, Transportation and Enterprise
Solutions in the GE Technology Infrastructure 'segment'.
GE Chairman and CEO Jeff Immelt said, “GE is a global infrastructure,
finance and media company that is well positioned to capitalize on some
of the major growth themes of this era. With the announcement of our
focus on a possible Consumer & Industrial spin-off, we can structure the
company in a simpler way that can maximize future growth.”
“Infrastructure leads our growth, with revenues approaching US$90bn. Our
infrastructure businesses are all global, technology based and have
dynamic service opportunities. The new organization will put two strong
leaders in position to drive execution,” said Immelt.
Effective immediately, GE moves from six to four segments, including
two infrastructure segments:
- GE Technology Infrastructure — led by Vice Chairman John Rice,
this segment includes Healthcare, Aviation, Transportation and
Enterprise Solutions. These businesses have opportunities to
leverage technology, software and engineering.
- GE Energy Infrastructure — led by newly appointed Vice Chairman
John Krenicki, this segment includes Energy, Oil & Gas and Water.
These technologies already work together with large customers,
particularly in emerging markets.
- GE Capital — Led by Vice Chairman Mike Neal, this segment
aggregates all the financial service businesses including Commercial
Finance, GE Money, industry verticals (GECAS, Energy Financial
Services), and Corporate Treasury. This organization will improve GE
Capital’s opportunities to allocate capital, grow globally and
- NBC Universal — led by Jeff Zucker this segment is unchanged and
will continue to focus on its strategic evolution through
globalization and diversification.
“We have been upgrading our portfolio of businesses and simplifying
our organizations for market focus, efficiency and execution,” Immelt
said. “We have higher-growth, higher-margin businesses and
organizationally have simplified the company from 11 business segments
in 2001 to four segments today. At the same time, we have structured the
company to best utilize our strong leadership team while maximizing
synergy and execution.”
GE's second quarter revenue (to 30 June) was up 11% to $46.9bn but
consolidated net earnings were down 6% at US$5.1bn. The healthcare
segment revenue was also up 11% at US4.5bn, but earnings were up 8% at
Earlier this month GE announced the appointment of John Dineen as
president and CEO of GE Healthcare. Dineen, 45, is a 22-year GE veteran and since 2005 has been president
and chief executive officer of GE Transportation, a $4.5 billion global
leader in the rail, mining, marine, drilling and wind industries. In his
new position, Dineen will be located in London, where GE Healthcare is
Before leading GE Transportation, Dineen served as vice president and
general manager of Plastics at GE Advanced Materials and held various
assignments in Corporate Finance. Dineen also served as general manager
of GE Power Equipment; general manager of the Meter business; general
manager of the Microwave and Air-conditioning businesses; manager of
finance for GE Asia in Hong Kong; and president of GE Plastics-Pacific.
He joined GE in 1986 as a telecommunications engineer.
Dineen succeeds Joseph Hogan, who has taken a position outside the
company as CEO of ABB.