GE Healthcare falls as China imposes export controls on some rare earth metals

Shares of medical equipment maker GE Healthcare GEHC.O decline 7.1% to $66.90 before the bell

Beijing announces controls that will restrict exports of some medium and heavy rare-earth metals including gadolinium

Gadolinium is used as a contrast agent that helps improve clarity of MRI scans

GEHC, which was spun off from conglomerate General Electric in 2023, makes MRI machines

Sales of GEHC's MRI scanners are recorded under its imaging segment revenues, which made up 46% of its total sales in 2024

Earlier this year, GEHC said it expects its full-year profit to be hit due to U.S. tariffs imposed on products from China

The company's China sales declined 15% in 2024, and it expects sales in the region to remain under pressure in the near term

As of last close, GEHC down 8% vs a 2% decline in S&P healthcare equipment .SPLRCMED YTD