GE says medical systems division boss to succeed Welch as chairman

Monday, November 27th 2000, 12:00 am

By: News On 6

HARTFORD, Conn. (AP) _ General Electric Co., capping a closely watched corporate succession drama, named medical systems division boss Jeffrey R. Immelt to replace the retiring John F. Welch Jr. when he steps down next year.

Immelt, 44, was one of three top GE executives who were believed to be potential successors to Welch, a business legend who turned 65 this month and has been at the helm of the Fairfield-based industrial and broadcasting powerhouse since 1981.

Company spokesman Gary Sheffer said Monday that Immelt, who has been with GE for 18 years, will immediately become president- and chairman-elect, working closely with Welch until the transition is complete next year.

Welch had previously announced his plans to retire.

Immelt has been president of GE Medical Systems, a $7 billion segment of the General Electric, since 1997. The division, based in Waukesha, Wis., is a world leader in medical diagnostic technology and information systems.

In announcing the GE board's decision, Welch described Immelt as '' a natural leader, and ideally suited to lead GE for many years.''

The other two executives widely believed to be under consideration for the top job at GE were Robert L. Nardelli, president and CEO of GE Power Systems and W. James McNerney, head of GE Aircraft Engines.

Immelt ``is an extremely capable executive leader, as evidence by his record as CEO of GE Medical Systems,'' said analyst Martin Sankey, vice president of Goldman, Sachs & Co. in New York. ``He compiled a strong record of generating growth and moving into new markets.''

Welch is widely credited with transforming a company best known for light bulbs and appliances into an empire that includes the television network NBC. He shook up GE's management structure and sold major divisions including the housewares, air conditioning and semiconductor businesses.

In his years as chairman, profits have risen from $1.6 billion to $10.7 billion in 1999, when GE had revenue of $110.8 billion.

Welch had initially planned to leave this year after turning 65 but put that off until the end of 2001 after GE announced plans in October to purchase Honeywell International Inc. for $45 billion in stock.

In morning trading Monday, shares of GE rose $1.06, or 2 percent, to $50.44 on the New York Stock Exchange.