GE names new chiefs in shake-up

The changes should help GE hold onto its key management

US manufacturing giant General Electric (GE) has announced a shake-up that will streamline its businesses and revamp its management.

The company said it would be trimming its operating units from 11 to five and named three new vice chairmen.

GE said the move would trim costs by $200m to $300m a year as well as speed up the decision making process.

"These changes will accelerate GE's growth in key industries," chief executive Jeff Immelt said.

Under the plans the GE will cut its businesses back to just GE Infrastructure, GE Industrial, GE Healthcare, GE Consumer Finance, GE Commercial Finance Services and NBC Universal.

The company covers a wide range of activities ranging from healthcare to TV to aerospace ventures.

Management reshuffle

Under the reorganisation three executives were promoted to vice chairmen - Dave Calhoun, John Rice and Michael Neal.

The trio will oversee the firm's biggest businesses - GE healthcare, consumer finance and infrastructure.

Analysts welcomed the move saying it was a sign that the firm, which has lost a number of senior staff to major US companies in recent years, was aimed at holding onto the firms most sought-after executives who have helped to steer the group through some tough periods in recent years.

"We believe today's announcement represents the turning point for GE in which GE's younger generation of business leaders ... will now take over the job of leading GE as well as overseeing all its key businesses," Prudential analyst Nicholas Heymann said.

Looking ahead the firm said it was on track to deliver "double digit" earnings growth in 2006, adding it expected to hit its earnings per share target of $1.78 to $1.83 for 2005.