Motors and Industrial Systems
James W. Rogers
President and Chief
Executive Officer,
GE Motors and
Industrial Systems
GE Motors and Industrial Systems delivered double-digit earnings growth on modest revenue growth in 1996. Driven by solid variable cost productivity gains and focused asset management routines, each of our major business segments achieved double-digit performance improvement in operating margin, higher operating cash flows and higher returns on total capital.
Our Consumer Motors and Controls business posted another strong performance in the North American heating, ventilation and air conditioning industry and made more progress by serving global and local customers from new joint ventures in Asia and Europe. The acquisition of Procond Elettronica in Italy puts us into the market for electronic controls for appliances.
GE engineers Craig Pinto (left) and Mike Dermott can access a distant customer's equipment and process systems from this new remote diagnostics center in Virginia to troubleshoot and resolve problems quickly.
Industrial Systems broadened its worldwide customer coverage and enhanced its competitive position through several joint ventures and global alliances that filled in product and technology gaps. Our Engineering Services business brought on-line a new remote diagnostics center, dramatically improving response times of our field installation and service personnel. GE Fanuc introduced a PowerMotionTM product line and enhanced its CIMPLICITY® software offerings.
Our employees became totally immersed in Six Sigma
education, training and deployment. We anticipate a three-to-one return on our quality investments in 1997 after breaking even in 1996. We also launched an upgrade of our information technology infrastructure, further strengthening our commitment to create real customer value by delivering defect-free, competitive products and services on time.
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