GE HealthCare produced double-digit percentage organic growth in first-quarter revenue, as well as adjusted earnings before interest and taxes (EBIT) and earnings per share.
For the period (end-March 31), GE HealthCare had revenues of $4.707 billion as reported, up 8% from the $4.343 billion produced in the first quarter of 2022. Organic revenue, however, reached $4.881 billion, up 12%.
First-quarter net income was $372 million, down from $389 million in the same period last year. Adjusted EBIT, however, was $664 million, compared with $599 million in the first quarter a year ago.
On an individual segment basis, GE HealthCare's Imaging segment had revenues of $2.496 billion, up 12% on an organic basis from the $2.311 billion reported in the first quarter of 2022. Growth was driven by MR and molecular imaging/CT due to fulfillment improvements in the company's supply chain, as well as by new product introductions.
Imaging EBIT dipped slightly, however, from $206 million in the first quarter of 2022 to $191 million this year. Planned investments and product mix outweighed higher volume, according to the firm. Looking ahead, GE HealthCare expects that the Imaging segment will experience stable demand for the rest of the year, boosted by a backlog in elective procedures, expansion of high-end diagnostic exams, and new therapies requiring precision image guidance, GE said.
Meanwhile, the Ultrasound segment generated revenues of $859 million, up 10% on an organic basis from the $815 million turned in during the same period a year ago. The company highlighted strong organic revenue growth in cardiovascular, general imaging, and women's health products.
The Ultrasound segment had segment EBIT of $207 million, up from $192 million in the first quarter of 2022. Profitability improved thanks to productivity, price, and volume, according to the vendor. GE HealthCare projects that the segment will be bolstered for the rest of 2023 by new product introductions and product localizations, we well as clinical innovation and improved efficiency.
As for GE HealthCare's Pharmaceutical Diagnostics segment, organic revenues reached $558 million in the first quarter of 2023, up 19% from the $484 million in revenue garnered during the first quarter last year. Growth was driven by price and volume, according to the company.
Segment EBIT was $155 million, compared with $138 million a year ago. EBIT margin was down, however, due mainly to raw material inflation and investments, GE HealthCare said. The Pharmaceutical Diagnostics segment is expected to produce continued volume growth in 2023 as procedure volumes return to pre-COVID-19 levels, according to the firm. Furthermore, it is accelerating capacity expansion in order to meet increasing demand, GE Healthcare said.
In other financial developments, GE will be paying a cash dividend of $0.03 per share for the first quarter.
