Tom lucked out. He might have got laid off by GE.<vbg>
ASSOCIATED PRESS
August 30, 2002
HARTFORD, Conn. – General Electric Co. is merging its lighting and appliance divisions, two of its best-known product lines, into an $8 billion consumer products business, as chairman Jeff Immelt continues reshaping the conglomerate.
The combination should save money and further simplify operations, Immelt said.
"Because appliances and lighting have powerful connections with similar consumer bases, we believe they will now be able to grow more successfully together than either would on its own," Immelt said in a news release. "We want to create a simpler, more efficient business that will be competitive across all product lines."
Merging consumer products divisions is the second major change Immelt has implemented in as many months as he reorganizes the Fairfield-based company he took over from legendary CEO Jack Welch a year ago.
In July, Immelt announced a reorganization of GE Capital that split the financial-services giant into four divisions.
"It looks to me like another bold move for Jeff Immelt. Makes sense," said analyst Scott Davis of Morgan Stanley.
"Both businesses are selling to consumers, both businesses have below-average margins at the firm, and certainly there appears to be some synergies in putting the two businesses under one management structure," Davis said.
The company said the new unit, GE Consumer Products, will be headquartered in Louisville, Ky., where about 6,000 workers produce washing machines, dishwashers and refrigerators. The division will keep a substantial presence in Cleveland, which has been home to the lighting operations.
Kim Freeman, a GE spokeswoman in Louisville, said the merger likely will lead to job reductions, primarily within the salaried ranks, but she said it's too soon to say how many.
Shares of GE fell 95 cents, or about 3 percent, to close at $30.35 on the New York Stock Exchange. |
