GE to Reorganize Into Six Units Thursday June 23, 8:05 am ET
General Electric to Reorganize 11 Businesses Into Six Units, Names Three New Vice Chairmen
FAIRFIELD, Conn. (AP) -- General Electric Co. said Thursday it will reorganize the company's 11 businesses into six industry-focused groups, and has named three new vice chairmen.
The company will be realigned into GE Infrastructure; GE Industrial; GE Commercial Financial Services; NBC Universal; GE Healthcare and GE Consumer Finance. Dave Calhoun, 48, will lead the Infrastructure group, Michael Neal, 52, will head up Commercial Financial Services and John Rice, 48, will lead the Industrial group.
GE said that as vice chairmen of the company, the executives will act as advisers to the board. All three are currently presidents and CEOs of GE businesses.
In GE Healthcare, Joe Hogan has been named to succeed Bill Castell as president and CEO when Castell retires in 2006. GE's Healthcare business will continue to be based in London.
"These changes will accelerate GE's growth in key industries," said Chairman and CEO Jeff Immelt. "We have been moving toward a more customer-focused organization for several years. In addition, we believe we can reduce $200 to $300 million of cost in savings and structural redundancies."
GE also backed prior guidance for the second quarter and full year, saying it is "on track" to reach its earnings estimates of 43 cents to 45 cents per share in the second quarter and $1.78 to $1.83 for fiscal 2005. GE continues to forecast double-digit growth into 2006 and beyond.
On average, analysts surveyed by Thomson Financial are looking for GE to post profit of 44 cents per share for the second quarter and $1.82 for the full year.
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