GE Healthcare shows Q2 downturn

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Fiscal 2007 second quarter sales and profits showed a slight dip for Chalfont St. Giles, U.K.-based GE Healthcare. The multinational medical device and informatics firm attributed the downturn to recent reimbursement and regulatory actions in the U.S.

For the period, end-June 30, GE Healthcare posted revenues of $4.13 billion, compared with revenues of $4.16 billion for the same period in the past fiscal year. For the first six months of fiscal 2007, revenues for the business segment stood at $7.77 billion, down slightly compared with the $7.82 billion booked in the first half of fiscal 2006.

Segment profit for the healthcare business in its 2007 second quarter stood at $731 million, compared with the $795 million recognized in the second quarter of 2006. For the first half of the current year, GE Healthcare is showing segment profit of $1.25 billion, compared with $1.29 billion posted for the same period last year.

GE chairman and chief executive officer Jeff Immelt acknowledged the struggles faced by GE Healthcare in the first two quarters of 2007, but remained upbeat about future progress for the business segment.

“At Healthcare, the impact from the Deficit Reduction Act (DRA) and the continued regulatory suspension on shipments of surgical supplies by our OEC business was greater than expected,” he said. “In the short term, these challenges more than offset strong performances in our other healthcare businesses. However, the future of this business remains solid.”