GE Healthcare of Chalfont St. Giles, U.K., posted annual revenues of $16.5 billion in 2006 (end-December 31), an increase of 9% over revenues of $15.1 billion in 2005. Segment profit advanced 18% to $3.14 billion, compared with $2.66 billion in 2005.
In the fourth quarter of 2006, revenues advanced 8% to $4.85 billion, compared with $4.48 billion in the same quarter a year ago. Segment profit rose $1.15 billion, up 16% percent from $995 million in the fourth quarter of 2005.
Parent company General Electric noted that GE Healthcare's fourth-quarter growth came without shipping any products from its GE OEC Medical Systems unit. GE Healthcare signed a consent decree from the U.S. Food and Drug Administration after an agency inspection of GE OEC's Salt Lake City facility in July and August 2006 revealed good manufacturing practices deficiencies that included "failure to establish and maintain adequate procedures for validating the device design and failure to establish and maintain adequate procedures for implementing corrective and preventive actions."
In the fourth quarter of 2006, GE's MRI revenues rose 17% over the fourth quarter of 2005, while ultrasound posted a 12% gain. In addition, monitoring products climbed 18%, services achieved 16% revenue growth, and bioscience was up 12%.
While the company said there was strong demand for its high-end CT scanners, revenues for CT were down 5% in the fourth quarter of 2006. GE attributed the comparative decline to unusually strong CT sales in the fourth quarter of 2005.
Also in the fourth quarter of 2006, total orders increased 8%, with x-ray products leading the way with a 23% gain over the fourth quarter of 2005, followed by CT with a 17% hike in orders, and MRI up 11%.
While growth in the Americas and Europe was strong, GE noted that growth in Asia was down and the company continues to see softness in China. Those trends are expected to continue in the first half of 2007.
GE said it expects strong revenue growth in the first quarter of 2007 for its Healthcare division, with profit of approximately 15%.
By AuntMinnie.com staff writers
January 19, 2007
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