General Electric today said it is streamlining its businesses to six operating units from 11 to cut costs.
The conglomerate also affirmed its second-quarter and full-year profit forecast.
Chief executive Jeff Immelt said. "We have been moving toward a more customer-focused organisation for several years. In addition, we believe we can reduce $200-$300 million of cost in savings and structural redundancies."
Mr Immelt said the company is on track to hit its earnings targets of 43 cents to 45 cents per share for the second quarter and $1.78 to $1.83 for 2005. "We see continued double-digit growth into 2006 and beyond," he said.
Analysts, on average, expect the company to earn 44 cents per share for the quarter and $1.81 per share for the year, according to Reuters Estimates.
The company's units will be aligned into GE Infrastructure, GE Industrial, GE Commercial Financial Services, NBC Universal, GE Healthcare and GE Consumer Finance.
