GE Aligns around Core Industries: Infrastructure, Finance, Media

From GE Press Releases

July 25, 2008 02:55 PM

Strong leaders in place to drive execution and connection to markets;
John Krenicki named Vice Chairman of GE

FAIRFIELD, Conn.–25 July 2008– GE Chairman and CEO Jeff Immelt today announced an organizational structure that simplifies the company and aligns businesses for growth and efficiency.

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 $90B. 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 reduce cost.
• 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.”

Immelt also announced that the GE Board of Directors had named Krenicki, 46, a 24-year GE veteran, as a vice chairman of GE.

“John is a world-class infrastructure expert, business strategist and commercial leader who has done a terrific job leading our Plastics, Transportation and Energy businesses,” Immelt said. “His clear thinking and broad global leadership experience will help drive growth across our energy and water infrastructure businesses.”

Since 2005, Krenicki has been president and chief executive officer of GE Energy, a leading supplier of power generation technology, energy services and energy management systems. Previously, he was president and CEO of GE Plastics and GE Advanced Materials. He also held a number of other leadership positions at various GE businesses, including vice president of the Americas for GE Lighting, vice president of GE Superabrasives and president and chief executive officer of GE Transportation Systems.

Krenicki earned a bachelor’s degree in mechanical engineering from the University of Connecticut and a master’s degree in management from Purdue University.