Laboratory Corp. of America Holdings (LH) posted a 31% rise in
second-quarter profit amid prior-year items as the latest period
saw improved margins and higher sales.
Chairman and Chief Executive David King said the company was
focusing on maintaining its prices and controlling costs, while
building on its position for personalized medicine.
Labcorp, one of the world's largest diagnostic-testing
companies, has relied on acquisitions to bolster growth in recent
quarters. In June, it agreed to acquire Monogram Biosciences Inc.
(MGRM), a maker of products to help guide and improve the treatment
of serious diseases.
On Thursday, the company reported earnings of $136.4 million, or
$1.24 a share, up from $104.2 million, or 92 cents a share, a year
earlier. Excluding restructuring charges and a prior-year bad-debt
adjustment, earnings rose to $1.30 from $1.24.
Net sales grew 3.6% to $1.19 billion.
Analysts polled by Thomson Reuters expected per-share earnings
of $1.27 on revenue of $1.18 billion.
Operating margins rose to 20.6% from 17%. Labcorp said testing
volume increased 2.4%.
The company, which performs routine tests like urinalysis and
Pap smears for health-care providers, also projected 2009 results
at the high end of its forecast, which excludes Monogram. That deal
is expected to close in the third quarter and earnings by 12 cents
a share this year.
On Tuesday, Labcorp's main rival, Quest Diagnostics Inc. (DGX),
reported its second-quarter profit grew 17% due to improved margins
and revenue, leading that company to raise its 2009 earnings
forecast.
Labcorp's shares were inactive at $67.81 in premarket
trading.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com