BURLINGTON, N.C.—Laboratory Corp. of America Holdings, a clinical lab services company, said Thursday its second-quarter profit fell 19 percent on the costs of closing facilities and increasing its debt provisions.
LabCorp's profit decreased to $104.2 million, or 92 cents per share, compared with $128.7 million, or $1.05 per share, in the second quarter of 2007. The results included $35.9 million in one-time charges, which cut its net income by 32 cents per share.
Revenue rose 10 percent to $1.15 billion, as testing volume increased 9 percent, and prices rose 1 percent.
On average, analysts polled by Thomson Financial expected LabCorp to report a profit of $1.24 per share on $1.16 billion in revenue. Analyst estimates normally exclude one-time items.
The company said it took a charge of $16 million to eliminate redundant and underused facilities, and jobs connected to those facilities. LabCorp also increased its allowance for customers accounts it is concerned won't be paid to $45 million, a move it made due to the effects of the economy, higher deductibles and copays for patients, and recent acquisitions.
Excluding one-time charges in 2007 and 2008, the company said its profit grew 6 percent.
LabCorp cut its annual profit and revenue forecasts, and in afternoon trading, the stock dropped $4.88, or 6.8 percent, to $66.77. It fell to $65 earlier in the session, which was its lowest price since Aug. 1, 2006.
