NEW YORK (GenomeWeb News) – The GE Healthcare unit of General Electric today reported fourth-quarter revenues of $5 billion, up 6 percent from revenues of $4.7 billion in the fourth quarter of 2006.
Despite the revenue gains, profits for GE Healthcare dropped 4 percent to $1.04 billion from $1.08 billion year over year.
“Healthcare’s segment profit was down 4 percent with the continued challenge from its OEC business and the effects of the Deficit Reduction Act,” Jeff Immelt, GE chairman and CEO, said in a statement. “The balance of the business is in good shape. We expect Healthcare to improve in ’08.”
Early last year, GE’s OEC Medical Systems division signed a consent decree with the US Food and Drug Administration for a permanent injunction related to X-ray surgical imaging systems. The consent decree was the result of CGMP deficiencies found by FDA investigators in August 2006 at the division’s manufacturing facility in Utah.
Immelt said during a conference call this morning that he is not expecting the firm’s diagnostic imaging products to provide “tremendous growth,” but he does expect the Healthcare segment to generate positive net earnings for all quarters of 2008. He estimated that GE Healthcare will report profit growth of 5 percent in the first quarter of 2008.
The firm did not mention its life science research products in either its press release or conference call.
For full-year 2007, GE Healthcare posted revenues of $17 billion, up 3 percent from revenues of $16.6 billion in 2006. Its profit for the year shrunk 3 percent to $3.06 billion from $3.14 billion last year.
Overall, fourth-quarter revenues for the diversified industrial, finance, and entertainment giant rose 18 percent to $48.6 billion from $41.3 billion year over year. The firm posted a profit of $6.7 billion, up 4 percent from $6.4 billion in Q4 2006.
For full-year 2007, GE reported revenue of $172.7 billion, up 14 percent from $151.8 billion in 2006. Its fiscal 2007 profit climbed 7 percent to $22.2 billion from $20.7 billion in 2006.