20 July 2012
GE today announced that it will reorganize its Energy business into three standalone businesses effective in the fourth quarter of 2012.
The company says it will phase out its Energy headquarters organizational layer by the end of 2012. This change will speed decision-making, reduce layers and decrease cost.
GE Energy Infrastructure includes approximately 100,000 employees and will have revenues of approximately US $50 billion in 2012. The three new businesses will report directly to GE Chairman and CEO Jeff Immelt:
- GE Power and Water, led by GE Senior Vice President and Power and Water CEO Steve Bolze, is headquartered in Schenectady, New York (US). It provides full lifecycle solutions for power generation customers, including renewable energy and water processing technologies. It will have approximately 41,000 employees and planned revenue of approximately $28 billion in 2012.
- GE Oil and Gas, led by GE Senior Vice President and Oil and Gas CEO Dan Heintzelman, is headquartered in Florence, Italy. It provides equipment and services for all segments of the offshore and onshore oil and gas industry, including turbomachinery and drilling and surface, subsea, and pipeline equipment and services. It will have approximately 33,000 employees and planned revenue of approximately $15 billion in 2012.
- GE Energy Management, led by GE Senior Vice President and Energy Management CEO Dan Janki, is headquartered in Atlanta, Georgia (US). It consists of technology solutions for the delivery, management, conversion and optimization of electrical power for customers across multiple energy-intensive industries. It will have approximately 27,000 employees and will have planned revenue of approximately $7 billion in 2012.
GE will begin reporting separate segment financial results for these three businesses beginning with the fourth quarter of 2012.
GE today delivered its ninth consecutive quarter of strong operating earnings growth. GE remains on track to deliver double-digit earnings growth in 2012 in its Industrial businesses, GE Capital and GE Energy, according to the company.
GE Vice Chairman and GE Energy Infrastructure CEO John Krenicki will oversee the transition to the new Energy structure during the third quarter. During the fourth quarter, he will continue to serve as a GE vice chairman and advisor to Immelt. Krenicki has decided to leave the company at the end of 2012.
