GE Healthcare produced flat revenue growth but a slight increase in profitability in its 2018 third quarter, amid news that the U.S. government was widening its investigation into accounting practices at parent company GE's Power business.
For the period (end-September 30), GE Healthcare had revenues of $4.707 billion, essentially flat as reported but up 3% on an organic basis compared with the $4.71 billion reported in the third quarter of 2017. Profit in the health division grew 2%, however, from $847 million a year ago to $861 million in the most recent quarter. GE said that its Healthcare team produced continued growth with strong productivity and execution during the third quarter.
For the nine months of the year to date, GE Healthcare posted revenues of $14.387 billion, up 5% from $13.703 billion for the first nine months of 2017. The segment's year-to-date profit was $2.522 billion, up 8% from segment profit of $2.335 billion in 2017.
GE announced in June that GE Healthcare would be spun off as an independent company.
In other company news, the U.S. Securities and Exchange Commission and the Justice Department are investigating a $22 billion accounting write-down of the company's Power division, according to reporting by CNN and other media outlets.
