UPDATE 1-Covance to shut Arizona facility, names new CFO

Wed May 2, 2012 5:04pm EDT

* Q1 adj EPS $0.60 in line with estimates

* Backs FY'12 EPS view of $2.50-$2.80

May 2 (Reuters) - Clinical research services provider Covance Inc said it would shut an Arizona facility as part of a plan to reduce costs, and named a new chief financial officer.

The company said it closed the Chandler, Arizona facility, which offers preclinical services including toxicology services, and pharmaceutical chemistry, to better align its capacity to demand in the preclinical market.

Covance said the move, along with further reductions in its early development cost structure, should improve its annual profit by at least $20 million.

The company also said current CFO Bill Klitgaard would take over the role of chief information officer, and will be replaced in the finance chief's role by its vice president of global financial planning and analysis, Alison Cornell.

Also on Wednesday, the company reported an adjusted first-quarter profit of 60 cents that was in line with market expectations, and backed its full-year earnings forecast of $2.50 per share to $2.80 per share.

For the full year, analysts were expecting the company to earn $2.66 per share, according to Thomson Reuters I/B/E/S.

Shares of Princeton, New Jersey-based Covance closed at $47.79 on Wednesday on the New York Stock Exchange.

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