(Corrects first paragraph to make clear Quest selling a
diagnostics products business, not all such businesses. Also
corrects to say write-down of value, not a write-off)
Jan 16 Quest Diagnostics Inc, the No. 1
U.S. clinical laboratory-testing company, said on Wednesday that
it would sell one of its diagnostic products business and take a
charge of $89.5 million, or 56 cents per share, to write down
part of its value and that of another business.
Quest also said that Superstorm Sandy, which caused deaths,
flooding, extended widespread power outages and disrupted
transportation in the Northeast starting in late October, had
hurt fourth-quarter earnings by 6 cents per share and
fourth-quarter revenues by $21 million.
Quest had already lowered its outlook for 2012 before the
storm, citing slowing growth as consumers have used fewer
medical services due to economic pressures and the government
and insurers have sought to reduce payments to labs and other
In November, Quest said it would cut costs by $100 million
and restructure to restore growth.
On Wednesday, the company said that it would restate 2011
and 2012 results to remove both the HemoCue diagnostic products
business and the OralDNA products business, which it sold in
December, from continuing operations.
That will reduce 2012 earnings per share by 9 cents and net
income from continuing operations by $15 million. It will lower
2012 revenue $117 million.
Analysts expect the company to report earnings of $4.50 per
share in 2012 and sales of $7.53 billion, according to Thomson
It will reduce 2011 earnings per share by 8 cents per share
and net income from continuing operations by $13 million. It is
lowering 2011 revenue by $119 million.
Quest is due to report fourth-quarter earnings on Jan. 23.
(Reporting by Caroline Humer; Editing by Maureen Bavdek and