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GE Healthcare Revenues Up 33 Percent for Q1 05

NEW YORK, April 15 (GenomeWeb News) - GE Healthcare had total revenues of $3.3 billion for the first quarter of 2005, up 33 percent over $2.5 billion for the same quarter a year ago -- before the acquisition of Amersham -- the company reported today.


GE Healthcare contributed 8 percent of GE's total revenues of $39 billion for the quarter ending March 31, up 19 percent over last year's $33.3 billion.


The healthcare unit -- the business segment headquartered in the UK and created to combine GE's legacy medical systems unit with the $10 billion Amersham acquisition of last April -- had earnings of $409 million for the quarter, up 21 percent over $340 million in the year-ago period.


Total orders for the healthcare unit grew by 45 percent over the first quarter of 2004 to $3.5 billion. The company said that this growth was driven by 10-percent growth in services, to $1.3 billion; 19-percent growth in equipment, to $1.5 billion; and $0.7 billion in revenues from the Biosciences business unit.


"Our portfolio changes have created a faster-growth company, and the moves we made in the last two years are paying off in excellent performance, particularly at Healthcare, NBC Universal, and Infrastructure," Jeffrey Immelt, GE's chairman and CEO, said in a statement.


GE reported total earnings of $4.0 billion, up 25 percent from $3.2 billion in first quarter 2004.


Earnings per share were $0.38, up 19 percent from last year's $0.32.


The company did not disclose its research and development spend for the period.


GE had $148.6 billion in cash and securities on hand at the end of the quarter.


During the quarter, GE Healthcare downsized its Sunnyvale, Calif., facilities -- the home of Molecular Dynamics, which Amersham acquired in 1998 -- as part of its ongoing integration of Amersham Bioscience. The unit's development workers were offered transfers to GE Healthcare's offices in Piscataway, NJ.