The global energy giant's energy infrastructure includes nearly 100,000 employees and is expected to have revenues of $50 billion this years.
The three new businesses, all of which will report directly to GE chairman and CEO Jeff Immelt, are:
GE Power and Water
GE Oil and Gas
GE Energy Management
“Big companies are always fighting organizational complexity," Immelt said. "We are taking action at a time when the Energy business is doing well. The business had a solid quarter with earnings up 13 percent and has a big backlog of great products. Removing layers is one way to reduce costs and increase our speed, focus and agility in the marketplace so we serve customers better.
“This move will greatly simplify the way we communicate to investors and customers,” Immelt continued. “We have built three strong franchises with solid growth prospects for each in the future. Our Energy portfolio is well positioned for future growth, our commitment to having the best technology is paying off with customers and we will continue to invest in our growth and competitiveness capabilities.”
Last week GE 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.
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