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Quest Diagnostics Reports Strong Performance in Second Quarter 2009
Date:7/21/2009

MADISON, N.J., July 21 /PRNewswire-FirstCall/ -- Quest Diagnostics Incorporated (NYSE: DGX), the world's leading provider of diagnostic testing, information and services, announced that for the second quarter ended June 30, 2009, income from continuing operations rose to $188 million, or $1.00 per diluted share, from $162 million, or $0.83 per diluted share, for the second quarter of 2008. These results include a previously disclosed benefit associated with an insurance recovery of $0.05 per share, offset by charges of $0.04 per share associated with the company's recently completed debt repurchase and an investment writeoff.

Second quarter revenues increased 3.5% to $1.9 billion. Clinical testing revenues increased 4.0% compared to the prior year. Revenue per requisition increased 4.6%. Underlying growth in clinical testing volume, measured by the number of requisitions, accelerated in the second quarter compared to recent quarters. Reported testing volume decreased 0.6%, reflecting a 24% decline in drugs-of-abuse testing volume, which is sensitive to hiring trends, and which reduced the company's consolidated volume by 1.7%. Changes associated with hospital lab management agreements that the company exited further reduced consolidated volume by about 0.7%.

"Our focus on esoteric and gene-based testing and providing superior service to patients and customers helped us accelerate revenue growth, improve our operating margin, and increase earnings per share 20% during the second quarter," said Surya N. Mohapatra, Ph.D., Chairman and Chief Executive Officer. "Quest Diagnostics' growth is being driven by increased demand in testing for cancer, sexually transmitted diseases and allergies. In addition, we added several important new tests during the quarter that will help drive future growth. B
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