By Mike Boyer
The Cincinnati Enquirer

GE Aircraft Engines in Evendale will become part of a newly created GE Transportation business, under a realignment announced today.

GEAE president Dave Calhoun will be president of the new GE Transportation unit, which will be based here and include GE's Erie, Pa., locomotive business.

The change, part of an effort by GE chairman Jeff Immelt to return the conglomerate to double-digit earnings growth, won't have much immediate impact on the jet-engine maker's Greater Cincinnati operations or employment, officials said.

GE's locomotive business employs 8,000 and is expected to report 2003 revenues of $2.8 billion; GEAE, the world's largest jet-engine maker, has 25,500 employees and expects revenues of $10.5 billion this year.

Charlene Begley will continue to lead GE's locomotive business, renamed GE Rail, and continue to be based in Erie.

"Each business is an industry leader," Calhoun told employees today. "Together, we can build upon that strong foundation."

GE said the change wouldn't affect how the businesses market themselves. But the company said it would look at consolidating staff functions such as finance, legal, information technology, human resources, communications and sourcing.

Chairman Immelt said the realignment, taking effect Jan. 1, includes most of GE's businesses which he divided into equally important "growth engines" and "cash generators."

The new alignment is supposed to do three things, he said:

• Organize GE around big markets to drive growth. Sales and marketing teams will be focused on the same customers, he said.

• Streamline headquarters and reduce cost.

• Align the company internally, the way it will be discussed externally.

Among the other realignments: GE Energy will include power systems and energy-related components of GE's industrial systems business. GE Power's John Rice in Atlanta will lead it.

GE Consumer & Industrial will combine its Louisville-based appliance business with the remaining electrical motors businesses in industrial systems.

GE's shares closed Thursday at $29.21, down 31 cents.

E-mail mboyer@enquirer.com