Oct. 26, 2015 – By Times-News — Health diagnostic testing company LabCorp, one of Alamance County’s largest employers, said Monday that its net earnings rose almost 50 percent during third quarter 2015.
The company attributed the earnings rise to its acquisition of Covance, a New Jersey drug development company.
“We are extremely pleased with our results this quarter, in which LabCorp Diagnostics had continued strong organic growth, and Covance Drug Development had strong new orders and accelerated revenue growth,” David P. King, chairman and chief executive officer of LabCorp, said in a statement.
LabCorp said that its net revenue for third quarter 2015 was $2.2 billion, a 46 percent increase over $1.5 billion in third quarter 2014.
For the year to date, net revenue was $6.26 billion, an increase of 39.2 percent over last year’s $4.50 billion. The acquisition of Covance contributed $1.54 billion from the Feb. 19 closing date, driving 34.2 percent year over year net revenue growth. The remainder of the increase of $227 million, or 5 percent, was due to strong organic volume growth and tuck-in acquisitions, partially offset by currency. Organic revenue growth in the first nine months of 2015, excluding currency, was 4.9 percent.
LabCorp’s pre-tax earnings were reduced by restructuring and special items of $248 million ($193.1 million impacted operating income, $52.6 million impacted interest expense, and $2.3 million impacted other, net), or $182.5 million after-tax. As a result, LabCorp recorded net earnings in the first nine months of 2015 of $322.6 million, compared to $391.6 million last year.
LabCorp is an S&P 500 company and among the world’s leading medical testing companies. It employs more than 48,000 people in over 60 countries. It remains headquartered in downtown Burlington.
Source: http://www.thetimesnews.com/article/20151026/NEWS/151029198
