Healthcare revenues rose 9% to $16.6 billion in 2006 as higher volume ($1.8 billion) more than offset the effect of lower prices ($0.4 billion). The rise in volume related to increases in healthcare services, including the effects of the 2006 acquisition of IDX Systems Corporation and stronger equipment sales. Segment profit of $3.1 billion was 18% higher than in 2005 as productivity ($0.6 billion) and the effects of higher volume ($0.3 billion) more than offset the effects of lower prices ($0.4 billion) and higher material and other costs ($0.1 billion).
Healthcare revenues increased 13% to $15.2 billion in 2005 as higher volume ($2.1 billion), including $0.8 billion from the Amersham acquisition in the second quarter of 2004, and the weaker U.S. dollar ($0.1 billion) more than offset lower prices ($0.4 billion). Segment profit of $2.7 billion was 17% higher than in 2004 as productivity ($0.5 billion) and higher volume ($0.4 billion) more than offset lower prices ($0.4 billion) and higher labor and other costs ($0.1 billion).
Orders received by Healthcare in 2006 were $16.7 billion, compared with $15.6 billion in 2005. The $5.9 billion total backlog
at year-end 2006 comprised unfilled product orders of $3.9 billion (of which 84% was scheduled for delivery in 2007) and product services orders of $2.0 billion scheduled for 2007 delivery. Comparable December 31, 2005, total backlog was $5.4 billion, of which $3.5 billion was for unfilled product orders and $1.9 billion for product services orders. See Corporate Items and Eliminations for a discussion of items not allocated to this segment.
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