GE Simplifies Energy Business
July 20, 2012 – GE announced today that it will reorganize its Energy business into three standalone businesses effective in the fourth quarter of 2012. The Energy headquarters organizational layer will be phased out 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 $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, NY. 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. 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电力和水务业务，由GE高级副总裁兼电力和水务首席执行官Steve Bolze领导，总部位于纽约斯克内克塔迪。该业务为发电领域客户提供全生命周期解决方案，包括可再生能源和水处理技术。其雇员约为4.1万，预计2012年营收约为280亿美元。
• GE油气业务，由GE高级副总裁兼油气首席执行官Dan Heintzelman领导，总部位于意大利佛罗伦萨。该业务为所有的陆上还海上油气工业领域提供设备和服务，包括包括涡轮机和钻孔，以及海面、海底、管道设备和服务。其雇员约为3.3万，预计2012年营收约为150亿美元。
• GE能源管理业务，由GE高级副总裁兼能源管理首席执行官Dan Janki领导，总部位于乔治亚州的亚特兰大。该业务包括为横跨多个能源密集型行业客户提供电力交付、管理、转换、优化的技术解决方案。其雇员约为2.7万，预计2012年营收约为70亿美元。
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.
Immelt said, “Big companies are always fighting organizational complexity. We are taking action at a time when the Energy business is doing well. The business had a solid quarter with earnings up 13% 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 said. “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.”
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.
GE副董事长兼GE能源基础设施CEO John Krenicki将在第三季度监督过渡到新的能源架构。第四季度期间，他将继续担任GE副董事长和伊梅尔特的顾问。 krenicki已决定在2012年底离开公司。
Immelt said, “In his 29 years with GE, John Krenicki has always made decisions with the best interests of our shareholders and our customers first. The decision to simplify the Energy Infrastructure business shows the kind of leadership John has demonstrated over the years. He will leave behind a tremendous legacy of operating businesses, and developing talented leaders.”
伊梅尔特评价道：“在其GE的29年生涯中，John Krenicki一直坚持股东利益最大化和顾客优先的原则做决策。分拆能源基础设施业务的决定显示了John Krenicki这么多年来所表现出来的领导能力。他将给我们留下一笔业务营运和培养有潜力领导者的巨大遗产。”