Profits at multimodality vendor GE Healthcare slipped by 3% in 2007, due to the effects of the Deficit Reduction Act (DRA) of 2005 and absence of C-arm shipments, according to the Chalfont St. Giles, U.K.-based company.
2007 revenues for the company increased 3% to $16.99 billion, compared with $16.66 billion in 2006. Profits for the year decreased to $3.05 billion, compared with $3.14 billion in 2006.
In the fourth quarter (end-December 31), revenues totaled $4.99 billion, compared with $4.7 billion in the fourth quarter of 2006. Profit was down to $1.03 billion, compared with $1.98 billion in the same quarter a year ago.
Parent company GE of Fairfield, CT, blamed the decline in profit on the temporary suspension of shipments from its GE OEC Medical Systems business and the effects of the DRA. GE said the rest of GE Healthcare "is in good shape" and expects the segment to improve in 2008.
GE Healthcare currently is preparing to resume shipments of surgical C-arms, more than a year after voluntarily halting deliveries from its GE OEC Medical Systems unit as part of a consent decree with the U.S. Food and Drug Administration.
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