Content |
Main article: GE Healthcare
2022: Increase in annual sales by 4%
The revenue of GE HealthCare, separated from General Electric (GE), at the end of 2022 amounted to $18.34 billion, which is 4% more compared to the result for 2021. Such data are provided in the financial report published on January 30, 2023.
GE HealthCare's net profit in 2022 was $1.97 billion against $2.29 billion a year earlier. Thus, a decrease of 15% was recorded for this indicator.
In the medical imaging segment, the company's revenue reached $9.99 billion in 2022. This is 6% more than the result of $9.43 billion, demonstrated a year earlier. Growth, as noted, was achieved through molecular imaging, computed tomography, magnetic resonance imaging and surgery. Ultrasound equipment brought in $3.42 billion against $3.17 billion in 2021: growth in this area amounted to 8%. The increase was provided by funds for radiology and primary health care, women's health and cardiovascular disease. In the division of products for monitoring patients, sales for the year did not change, remaining at the level of $2.91 billion. Products for pharmaceutical diagnostics made it possible to gain $1.96 billion against $2.02 billion in 2021: the fall was at around 3%. All other business areas brought in $60 million - plus 28% compared to $47 million in 2021.
 | Stable end-market demand, improved pricing and easing supply chain pressures helped the company post growth in 2022. The increase in revenue reflects our progress in addressing delivery and fulfillment issues. We are confident that our accelerated investment in innovation, as well as standardization of platforms, will stimulate revenue and profit growth, "said Peter Arduini, CEO of GE HealthCare[1] |  |
2020
Medical Diagnostic Imaging Device Market Share - 19.7%
At the end of 2020, GE Healthcare took 19.7% of the global market for medical devices for diagnostic imaging (British Evaluate data). Read more here.
Decrease in revenue by 10%, to $18 billion
GE Healthcare completed 2020 with revenue of $18 billion, down 10% from a year earlier. The volume of orders from the company during this time decreased even more - by 12% to $18.65 billion.
The reduction in orders at GE Healthcare was associated with the sale of the BioPharma division for $21.4 billion to Danaher.
GE Healthcare's financial statements report that the Healthcare Systems direction in 2020 showed a 1% increase due to improved performance in Europe and China, and a 1% decline was registered in the direction of Pharmaceutical Diagnostics. The manufacturer also noted the growth of the Life Care Solutions business, which was facilitated by large supplies of Carescape R860 ventilators, as well as ultrasound diagnostics and other imaging systems.
In 2020, sales of GE Healthcare medical equipment reached $10 billion, an increase of 8% compared to the previous year. The service business brought the company $8 billion, down 1% year-on-year.
GE Healthcare's 2020 profit was $3.06 billion, falling 18% from a year ago. The company managed to reduce costs and increase equipment supplies in the Healthcare Systems segment, but this did not help increase profits in 2020.
Summing up the results of the year, GE Healthcare noted the results of its work to combat the COVID-19 coronavirus pandemic. In particular, the company quadrupled the production capacity for the production of artificial lung ventilation devices, and also increased the production of other solutions for the diagnosis and treatment of patients with coronavirus.
| | The healthcare system market remained dynamic as increased demand for COVID-19-related equipment was offset by lower demand for non-pandemic products, says GE CFO Carolina Dybeck Happe, commenting on the 2020 results. - If you look at health care in a regional context, then in Europe and China, where public medicine prevails, they were stronger than private, especially in the USA, India and Latin America.[2] | |
2018: Revenue growth 4% to $19.78 billion
In 2018, GE Healthcare's revenue reached $19.78 billion, an increase of 4% from the previous year. The volume of orders during this time increased by 2%, reaching $20.9 billion. The medical unit accounted for more than 16% of the annual revenue of the General Electric concern.
GE Healthcare's profit in 2018 was $3.7 billion, which is 6% more than a year ago.
The BioPharma division in 2018 brought about three billion dollars to the company's total piggy bank (about 15% of total revenues in the GE Healthcare segment), of which more than $2.5 billion was accounted for by sales of various biotechnology products. According to many market analysts, it was BioPharma that was considered the most promising component of the GE biomedical segment, which has provided consistently high margins over the past few years.
BioPharma is engaged in the development, marketing and sale of innovative consumable biomaterials, in particular the special Fortem protective film, the production of chromatographic equipment, the creation of technologies and materials for growing cell cultures, various medical devices, etc.
On the day of the publication of financial results, General Electric quotes rose by more than 14%, and since the beginning of 2019, shares have risen by 36%. This is how the market reacted to the statement by General Electric CEO Larry Culp to sell a larger stake in GE Healthcare than originally planned.
The company wanted to sell a 20% stake in GE Healthcare and transfer the remainder to shareholders in a tax-free deal. In late January 2019, Larry Culp stated that up to half of the share capital could be sold.
| | We expect to monetize just under 50% of our healthcare business. The medical unit continues to prepare for separation into an independent public company, and this is very good, "he said in a conversation with CNBC. | |
According to the Bloomberg news agency, citing people familiar with the situation, GE Healthcare may go public in the spring of 2019. Preparation for GE Healthcare's IPO is entrusted to investment banks Goldman Sachs, Bank of America, Citigroup, JPMorgan Chase and Morgan Stanley.
According to Scott Davis, chairman of the board of directors and CEO of the analytical company Melius Research, the sale of a larger share of the medical unit will help General Electric pay off its debts, which it has accumulated in various businesses.
Larry Culp noted that GE Healthcare and other separable units could become "revenue sources of about $50 billion."[3]
2017: Rising incomes thanks to developing countries
In 2017, GE Healthcare's revenue reached $19.1 billion, up 5% from a year earlier.
The profit of the medical division of General Electric in 2017 was equal to $3.44 billion against $3.16 billion in 2016. Thus, the growth was 9%, which the company attributed to an increase in sales of equipment and services, as well as an improvement in work in terms of cost optimization.
The financial report said GE Healthcare's revenues in the European and US markets were "stable," meaning they changed marginally from 2016. At the same time, in developing countries, the company recorded double-digit growth - by more than 10%.
The volume of orders received by the company for the 12-month reporting period closed on December 31, 2017 increased by 6% and exceeded $20.4 billion. Orders in emerging markets increased by 12% thanks to China and the Middle East. Customers from Europe and the United States increased orders of GE Healthcare products by 8%.
One of the main drivers of financial growth of GE Healthcare was the Life Sciences division (specializing in the development of equipment for cell therapy, medical image processing, chromatographic analysis, etc.), whose revenues increased by 7%. In the Medical Systems Division (Healthcare Systems), sales increased by 6%.[4]
Meanwhile, the company reported a write-off of more than $11 billion in its health insurance business. The company is left with billions of dollars in long-term medical care insurance policies: They are designed to pay for care home detention, including with additional health care, and the services of caregivers working in private homes.
Insurers began to actively sell them in the early 1990s, hoping to make good money on these policies, which were very popular with older people who feared that in old age they would not be able to take care of themselves or they would run out of savings. However, by the mid-2000s, insurance companies began to quickly curtail this practice, realizing that they had greatly miscalculated the number of policyholders and their life expectancy.
2016: Revenue growth of 4% due to ultrasound devices
In January 2017, General Electric published a financial report from which the performance of the medical unit became known. Its annual revenue increased by 4% and profit by 10%. One of the main growth drivers was ultrasound diagnostics equipment.
In 2016, GE Healthcare raised $18.3 billion against $17.6 billion a year earlier. Profits rose to $3.2 billion from $2.9 billion. The volume of orders reached $19.2 billion, an increase of 3% compared to 2015.
In the fourth quarter of 2016, the largest increase in orders was recorded in China (+ 19%), Latin America (+ 16%) and Europe (+ 6%).
The increase in profits at GE Healthcare was linked to higher sales and better cost efficiency. At the same time, price erosion became a negative factor. The share of profit in revenue was 20.2%, an increase of 1.3 percentage points on an annualized basis.
One of the catalysts for the rise in revenue was the sale of ultrasonic equipment, which in October-December 2016 rose by 6%. In the Life Sciences division (specializing in the development of equipment for cell therapy, medical image processing, chromatographic analysis, etc.), revenues increased by 9%.
Speaking of notable events during the final months of 2016, GE Healthcare noted the announcement of 25 new products as part of the Radiological Society of North America (RSNA 2016) Congress, a 50% increase in the number of new products introduced at the same event the year before.
In addition, the company began working with the University of California, San Francisco (UCSF) and Boston Children's Hospital on the use of analytical tools in radiology and entered into two contracts with the Turkish Ministry of Health for the supply of equipment and services worth $128 million over 25 years.[5]
2015: Drop in revenue to $17 billion and profit to $2.88 billion
In March 2016, GE Healthcare's annual financial performance was released. The company's revenue and profit decreased by about 4-5%.
In 2015, GE Healthcare's net profit was $2.88 billion against $3.05 billion a year earlier. Sales fell from $18.3 billion in 2014 to $17.64 billion a year later.
According to the results of January-December 2015, Life Sciences, part of GE Healthcare, specializing in the development of equipment for cell therapy, medical image processing, chromatographic analysis, etc., received a volume of orders that is 8% higher than a year ago. In the biotechnology division, growth was at 16%.
At a meeting with investors in March 2016, GE Healthcare CEO John Flannery stated that the priority for the company is to increase profit margins, which have remained unchanged over the past few years. In 2015, this figure was 16.3%, and by 2018 the company predicts growth to 18% and higher.
GE Healthcare intends to cut costs three times in large part by launching new products and reducing the cost of development and research work. The company also plans to increase revenues from sales of digital services.
| | To be honest, we couldn't increase margins because we haven't been able to cut spending in years past, "Flannery said. | |
According to Reuters, some analysts suggested that GE Healthcare could sell part of the assets (for example, the business of producing X-ray equipment) or, by contrast, strengthen its position in some areas through acquisitions.
John Flannery said the company does not consider changes to the product portfolio as one of the main components of the strategy aimed at increasing revenue and profitability in the markets of presence.
| | We fully maintain the X-ray business. It is inextricably linked to our portfolio, as in more than 40% of orders, the company supplies equipment that requires an X-ray component, GE Healthcare said.[6] | |
Notes
- ↑ GE HealthCare Reports Fourth Quarter and Full Year 2022 Financial Results
- ↑ webcast pressrelease 01262021.pdf GE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2020 RESULTS
- ↑ GE ANNOUNCES FOURTH QUARTER 2018 RESULTS
- ↑ GE ANNOUNCES FOURTH QUARTER 2017 RESULTS
- ↑ GE 4Q 2016 EARNINGS
- ↑ GE Health targets profit margins, reversing weak performance
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |