Ongoing industry-wide supply shortages led to a 5% decline in revenues for GE Healthcare in its third quarter. Orders were up sharply, however.
For the period (end-September 30), GE Healthcare had revenues of $4.34 billion, down 6% on an organic basis from the $4.57 billion reported in the third quarter of 2020. Segment profit was $700 million, down 10% on an organic basis.
In positive developments, Healthcare System orders increased more than 20% on an organic basis, including double-digit growth in imaging, ultrasound, and life care solutions compared with the third quarter of 2019. Healthcare segment margin was 16.2%, flat as reported but contracted 60 basis points compared with the same period a year ago, according to the vendor.
However, "Even with supply chain challenges, organic margins are now expected to expand close to 100 bps this year as the team proactively manages sourcing and logistics," GE said in a release. "Healthcare is well-positioned to keep investing in future growth with improving profit and cash flow generation."
