Special Guest Blog By Ken Kinlock

(Featured image is Jeff Immelt in his first year as CEO. From 2001 Annual Report)

Today I am going to investigate the 2001 GE Annual Report and see what Mr. Immelt got from Jack.

The businesses are as follows:

1. GE Power Systems, John Rice, Presidennt & CEO.
$20,211 million revenues; $5,182 million segment profit
The most successful year in our 110-year history. World’s No. 1 provider of high-technology power generation equipment and services. Investing more than $2.2 billion in new product and service technology programs and new business acquisitions.

2. GE Aircraft Engines, Dave Calhoun, President & CEO.
$11,389 million revenues; $2,609 million segment profit
The awful events of 11 September staggered the airlines, and us as well, but the airline industry’s crisis provided GE with the opportunity to prove there is no higher priority in this business than supporting our customers.

3. GE Medical Systems (former X-Ray Department); Joe Hogan, President & CEO.
$8,409 million revenues; $1,803 million operating profit
Had a terrific year in 2001 – with earnings up 15%, strong double-digit growth in every region of the world and several acquisitions that will allow us to serve our customers better than ever before. China, with 50% annual growth, is quickly becoming the world’s second-largest healthcare marketplace, and GE Medical has become China’s premier developer of medical technology.

4. GE Capital (former GE Credit Corportion), Denis Nayden, President & CEO.
Earnings Before Accounting Changes $5,586 million (“back in the old days”, GE Credit was a “non-consolidated sales finance affiliate” and treated differently)
For 68 years, GE has built a financial services business characterized by strength and an increasingly global reach. But more to the point, we’ve worked to create diverse enterprises that produce consistent earnings regardless of external factors – even extreme ones. 2001 demonstrated the resilience of our business model. Notwithstanding the terrorist attack on the United States, the war in Afghanistan and a limping world economy, we turned in the strongest performance in our history. We delivered a record-breaking $5.6 billion in earnings – an 8% increase over 2000 – and would have achieved 15% earnings growth without the World Trade Center insurance losses.

5. GE Plastics, Washiaki (“Fuji”) Fujiarmi, President & CEO.
$5,282 million Revenues; $1,257 million operating profit
As a global leader in material innovation, GE Plastics brings a unique combination of technology, productivity and digitization to our customers worldwide. We managed our business through a challenging world economy in 2001, characterized by declines in sales and earnings that were indicative of global market weakness. Even in this tough environment, we made investments in our business to reposition GE Plastics for future growth.

6. NBC, Andrew Lack, President & COO.
$5,769 million revenues; $1,602 million segment profit
In 2001, NBC continued to outperform the competition with strong performances across all of our operating divisions. In the toughest advertising market in a decade, earnings were down, but we are in significantly better shape than the competition. With significant strategic acquisitions and programming and operational strength, we are well positioned for accelerated growth as ad sales recover. The NBC television network finished the year with 6 of the top 10 prime-time shows in the most sought-after demographic category, adults 18-49. The Peacock network received 16 Emmy Awards in 2001, more than any other broadcast network for the eighth year in a row.

7. GE Industrial Systems, Lloyd Trotter, President & CEO
$11,647 million revenues, $1,843 million segment profits
GE Industrial Systems saw a decrease in earnings on slightly lower revenues. Despite aggressive cost actions, including digitization efforts that helped drive $100 million of savings, we could not offset declines from weakness in multiple sectors of the economy, including telecommunications, machine tools and commercial construction. Despite the weakening economy, we seized opportunities to accelerate our growth and fill product gaps. Several acquisitions brought new, innovative technologies to our business.

8. GE Europe, Nani Baccalli President & CEO
Europe is one of GE’s most important growth opportunities. We have a very solid business foundation – some 70,000 people and $26 billion in sales, much of which was built on successful acquisitions in Power Systems, Medical Systems and GE Capital. The opportunity that excites us, and which was the major reason for the creation of this organization, centers on our belief in the European market and our team’s ability to execute. Our priority in Europe is therefore the same as GE’s worldwide: not just to grow, but to accelerate growth; and that is the first point on which we will be judged. To that end, we are reinforcing our capability to support customers and increase business development.

9. GE Appliances, Jim Campbell, President & CEO
$5,810 million revenues; $643 segment profit
GE Appliances, one of the world’s most innovative appliance brands, outperformed its industry in a tough economy, gaining market share again in 2001 and exceeding industry profitability results. GEA’s performance was driven by new product vitality – double the introductions of 2000 and four times that of 1999 – and rigorous cost control, proving that GEA knows how to execute in a very challenging industry. GEA aggressively invested in its high-end GE Profile™ brand, offering consumers dramatic new styling and innovative features. GEA introduced 70 new products and 52 new models qualifying for U.S. DOE Energy Star® status. Among them: Triton™ XL dishwashers, America’s most energy-efficient, and an exciting new line of energy-efficient refrigerators, anchored by the award-winning GE Profile Arctica. GEA Six Sigma experts “lived” in customers’ facilities, probing their processes and assisting them with quality improvement.

10. GE Lighting, Matt Espe, President & CEO
$2,550 million revenues; $405 million operating profit
GE Lighting faced a sluggish economy and competitive pressure in 2001 with aggressive actions aimed at boosting our customers’ productivity and profitability. Our commitment to product leadership continued last fall with the largest product launch in our history. The color-enhancing GE Reveal™ line began changing the way people see their world, and sales are exceeding expectations. Specialty Lighting, a new operation announced in 2001, targets growth in the $1.5 billion specialty lighting market with innovative products for such diverse markets as entertainment and biotechnology.

11. GE Transportation Systems, John Kranicki, President & CEO
$2,355 million revenues; $497 million operating profit
GE Transportation Systems turned in a solid performance in 2001 despite a significant decline in locomotive demand. The sixth consecutive year of double-digit services growth offset lower locomotive revenues. New orders for GE Transportation Systems totaled more than $5 billion, including the largest locomotive service partnership in our history, with Union Pacific Railroad. GETS will continue to accelerate maintenance service partnerships with our customers over the next year. GETS also won the majority of new locomotive orders in 2001, including an order from VIA Rail Canada and multi-year deals with Burlington Northern, Santa Fe and Norfolk Southern. Adding momentum to our services growth was the acquisition of locomotive service assets from the Wabtec Corporation. This gives us the capability to provide aftermarket products and perform fully competitive maintenance services for EMD locomotives, a $1 billion opportunity that more than doubles the growth potential for this business.

12. GE Specialty Materials, Bill Woodburn, President & CEO
$1,817 million revenues; $339 million operating profit
GE Specialty Materials was formed in June 2001. Operating out of 24 locations in 11 countries, GESM is a nearly $2 billion operation that includes GE Silicones, GE Superabrasives, GE Specialty Chemicals and GE Quartz. With a broad product offering, GESM serves industries as diverse as automotive, cosmetics, semiconductors, oil drilling and telecommunications. Our diversity is our strength. GE Specialty Materials is a globally oriented growth platform using technological innovation and an intense business development focus to bring more value to our customers. In 2001, we launched more than 175 new products, creating more than $200 million in new revenue. We are identifying and pursuing global businesses to complement our existing components and launch GE into new products and services.

If you want to get into the financials, click on this link:


GE total revenues were $74.0 billion in 2001, compared with $69.5
billion in 2000 and $60.9 billion in 1999.

For the years ended December 31 (In millions) 2001 2000 1999 1998 1997
GE Aircraft Engines $ 11,389 $ 10,779 $ 10,730 $ 10,294 $ 7,799
Appliances 5,810 5,887 5,671 5,619 5,801
Industrial Products and Systems 11,647 11,630 11,399 11,078 10,763
Materials 7,069 8,020 7,118 6,796 6,934
NBC 5,769 6,797 5,790 5,269 5,153
Power Systems 20,211 14,861 10,099 8,500 7,986
Technical Products and Services 9,011 7,915 6,863 5,323 4,861
Eliminations (2,900) (2,101) (1,788) (1,420) (1,265)
Total GE segment revenues 68,006 63,788 55,882 51,459 48,032
Corporate items (a) 445 517 619 771 3,227
Earnings of GECS before accounting changes 5,586 5,192 4,443 3,796 3,256
Total GE revenues 74,037 69,497 60,944 56,026 54,515
GECS segment revenues 58,353 66,177 55,749 48,694 39,931
Eliminations (b) (6,477) (5,821) (5,063) (4,251) (3,606)
Consolidated revenues $ 125,913 $129,853 $111,630 $ 100,469 $ 90,840


Jeffrey R. Immelt
Chairman of the Board &
Chief Executive Officer

Dennis D. Dammerman
Vice Chairman of the Board & Executive Officer, General Electric Company; and Chairman, General Electric Capital Services, Inc.

Gary L. Rogers
Vice Chairman of the Board &
Executive Officer

Robert C. Wright
Vice Chairman of the Board & Executive Officer, General Electric Company; and Chairman & Chief Executive Officer, National Broadcasting Company, Inc.

from left
William J. Conaty
Senior Vice President,
Human Resources

Scott C. Donnelly
Senior Vice President, GE Global Research

Benjamin W. Heineman, Jr.
Senior Vice President, General Counsel & Secretary

from left
Robert A. Jeffe
Senior Vice President, Corporate Business Development

Gary M. Reiner
Senior Vice President & Chief Information Officer

Keith S. Sherin
Senior Vice President, Finance & Chief Financial Officer

Corporate Staff Officers

Philip D. Ameen
Vice President & Comptroller

James R. Bunt
Vice President & Treasurer

Lynn A. Calpeter
Vice President, Audit Staff

Beth Comstock
Vice President, Corporate Communications

Robert L. Corcoran
Vice President & Chief Learning Officer

Pamela Daley
Vice President & Senior Counsel, Transactions

Brackett B. Denniston III
Vice President & Senior Counsel, Litigation & Legal Policy

R. Michael Gadbaw
Vice President & Senior Counsel, International Law & Policy

Joyce Hergenhan
Vice President & President, GE Fund

Jean M. Heuschen
Vice President, Materials Technology

John H. Myers
Chairman & President, GE Asset Management

Robert W. Nelson
Vice President, Financial Planning & Analysis

Stephen M. Parks
Vice President, Taxes, Europe

Susan M. Peters
Vice President, Executive Development

Stephen D. Ramsey
Vice President, Environmental Programs

John M. Samuels
Vice President & Senior Counsel, Taxes

Ronald A. Stern
Vice President & Senior Tax Counsel, Antitrust

Piet C. van Abeelen
Vice President, Six Sigma Quality

Richard F. Wacker
Vice President, Corporate Investor Relations

Susan M. Walter
Vice President, Government Relations


OK everybody reading this.

I hope you enjoy as far as we have gone. But we have not reached a conclusion.

At the end of 2001, looks like Jack did not leave a pile of junk to Jeff.

If you have any interest in this subject, PLEASE leave me a comment!

Will be interesting to see what John Flannery can do with it!!!!!!


I can see problems with Lighting and Appliances. Tough to understand Transportation Systems.

Selling NBC was a misteak


Like I said, please comment!!!





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