Transportation Systems
David L. Calhoun
President and Chief
Executive Officer,
GE Transportation
Systems
GE Transportation Systems achieved records in earnings and cash generation and improved operating margin in 1996 despite lower revenues. Strategically, we expanded our products and services and broadened our markets.
Production reached our second-highest level on record and included several prototype locomotives. New 6000-horsepower AC locomotives are being tested by Union Pacific and CSX in preparation for full production. A lightweight AC prototype was developed between GE and Adtranz, with first units scheduled for Pakistan. A new joint venture facility in Indonesia produced units for Indonesia and the Philippines. First shipments to Kazakstan, Egypt and Mongolia also stretched our global reach. Rail privatization projects offer significant opportunities for 1997.
CSX placed three of these new GE AC6000CWTM locomotives--the most powerful, single-engine diesel-electric locomotives ever built by GE--into revenue service in 1996.
Success in these initiatives is enhanced by our Six Sigma quality efforts, which also bring productivity directly to customers. In 1996-97, we will invest more than $25 million in Six Sigma. More than 70 individuals have been hired and certified to lead 450 projects expected to save the business $30 million in 1997. By the end of 1997, at least 75% of our employees will be trained to implement Six Sigma tools.
Service is our largest growth area. Orders grew significantly in 1996 and should increase threefold through 1997. GE-Harris Railway Electronics, our joint venture with Harris Corporation, exceeded its first-year expectations on the strength of its LOCOTROL® product, which enables a railroad to haul longer trains faster, and with less fuel consumed, by distributing locomotives throughout the train.
Next
Previous
Overview