Cost-control programs boost OEC earnings
OEC Medical Systems reported a strong increase in net income forits 1995 fiscal year (end-December), although revenues were uponly slightly compared with 1994. OEC, of Salt Lake City, attributedthe earnings growth to improved profit margins that resulted
OEC Medical Systems reported a strong increase in net income forits 1995 fiscal year (end-December), although revenues were uponly slightly compared with 1994. OEC, of Salt Lake City, attributedthe earnings growth to improved profit margins that resulted fromcost-control programs.
For the year, OEC had revenues of $101.5 million, up 3% comparedwith $98.2 million in sales the year before. The company saidinternational sales were a bright spot, as it saw a 125% increasein revenues. In the U.S., however, the ongoing consolidation ofthe healthcare industry hurt sales. Orders in 1995 were levelwith those of 1994, but higher discounting resulted in lower revenues,according to OEC chief executive Ruediger Naumann-Etienne.
Net income for the year increased sharply. OEC registered earningsof $11.8 million, up 36% over the $8.7 million reported in theyear before. Naumann-Etienne said operating profit increased asthe company focused on improving manufacturing efficiencies andon controlling costs.
For the fourth quarter of 1995, OEC had net income of $3.4million on sales of $27.1 million, compared with net income of$3.1 million and sales of $28.2 million in the fourth quarterof 1994.