HEALTHCARE
Healthcare revenues rose 3% to $17.0 billion in 2007 as the effects of the weaker U.S. dollar ($0.5 billion) and higher volume ($0.4 billion) more than offset lower prices ($0.5 billion). Increased sales in the international diagnostic imaging, clinical systems and life sciences businesses were partially offset by price pressures on U.S. equipment sales and lower sales of surgical imaging equipment resulting from regulatory suspensions of equipment shipments. Segment profit of $3.1 billion in 2007 was 3% lower than in 2006 as lower prices ($0.5 billion) and higher labor and other costs ($0.2 billion) were substantially offset by the effects of productivity ($0.4 billion) and higher volume ($0.1 billion).
Healthcare revenues rose 10% to $16.6 billion in 2006 as higher volume ($2.0 billion) more than offset the effect of lower prices ($0.4 billion). The rise in volume related to increases in healthcare services, including the 2006 acquisition of IDX Systems Corporation and stronger equipment sales. Segment profit of $3.1 billion was 21% higher than in 2005 as productivity ($0.6 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 were $16.7 billion in both 2007 and 2006. The $5.6 billion total backlog at year-end 2007 comprised unfilled product orders of $3.5 billion (of which 94% was scheduled for delivery in 2008) and product services orders of $2.1 billion scheduled for 2008 delivery. Comparable December 31, 2006, total backlog was $5.9 billion, of which $3.9 billion was for unfilled product orders and $2.0 billion for product services orders. See Corporate Items and Eliminations for a discussion of items not allocated to this segment.