Revenue, gross profit rise at Carestream Health

By MIKE DICKINSON - 2/21/2014 4:12:23 PM

Carestream Health Inc. revenues rose some 1 percent in 2013 to $2.43 billion.

The locally based company is part of the health care segment of its majority owner, Toronto-based Onex Corp. Onex disclosed the local firm’s financials in an annual report released Friday.

Carestream Health generated revenues of $2.41 billion in 2012. The company’s cost of sales was $1.44 billion, flat with 2012.

Its gross profit for 2013 increased to $985 million from $957 million in 2012 due primarily to higher volume of digital products sold, higher prices for film and lower commodity costs in 2013 compared to 2012, Onex said.

Onex attributed the increase in revenues primarily to higher volume in the contract manufacturing and X-ray systems businesses and higher prices in the traditional film businesses. Partially offsetting the increase, however, was lower volume in the traditional film businesses, reflecting the continuing transition from film to digital processes in medical imaging and a shift to lower-priced products in the digital equipment segments.

Cost of sales decreased primarily due to lower costs for silver, a major component in the production of film.

Onex reported that in 2013, some of its operating businesses took advantage of strong credit markets, collectively raising or refinancing $8.9 billion of debt. During the second quarter, Carestream Health raised some $2.4 billion of funded debt, primarily to refinance existing debt and to fund a distribution of $750 million to its shareholders.

Carestream Health reported restructuring expenses of $10 million in 2013 compared with $6 million in 2012. The costs related primarily to the reorganization of European sales and service functions and the relocation and closure of a film-finishing plant.

The company ranked fifth on the Rochester Business Journal’s most recent list of manufacturers with 1,250 employees. Onex acquired Carestream Health, formerly Eastman Kodak Co.’s health division, in 2007.

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