General Electric of Fairfield, CT, is blaming the Deficit Reduction Act (DRA) of 2005 for some of the decline in revenues and profit at its GE Healthcare division in the second quarter (end-June 30).
The parent company also cited the continued regulatory suspension on shipments of surgical supplies from its OEC business as having a greater adverse impact than expected.
In the second quarter, the Chalfont St. Giles, U.K., division's revenues dipped 1% to $4.12 billion, compared with $4.15 billion in the second quarter of 2006. Net income totaled $731 million, an 8% drop from $795 million in the same quarter of last year.
For the six-month period, GE Healthcare's revenues declined 1% to $7.76 billion, compared with $7.81 billion in the same period of 2006. Net income slipped 3% to $1.25 billion, compared with $1.29 billion in the first half of last year.
By AuntMinnie.com staff writers
July 16, 2007
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