Imaging firms hit by declining earnings

The medical imaging device segment was one of the worst performing sectors in the healthcare industry during the second quarter of 1998, with earnings dropping 14.5% despite a revenue increase of 6.8%, according to a report produced by KPMG’s Health Care Transaction Services division and WDI Healthcare Markets Group. Only the durable medical equipment and monitoring devices segments posted lower results, with earnings for those sectors dropping 28.2% and 36.8%, respectively.

For imaging device companies, the quarter continues a reduced profitability trend that has plagued the sector in recent periods. In the first quarter of this year, earnings decreased 1.9% with a 10.5% increase in revenue, according to KPMG and WDI, which is based in Hilton Head, SC. Fourth-quarter earnings were down 15.2% despite a 9.6% increase in revenue.