Quest Diagnostics Plans to Sell HemoCue Diagnostic Products Business as Part of its Strategy to Refocus on Diagnostic Information Services
MADISON, N.J., Jan. 16, 2013 /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE: DGX), the world's leading provider of diagnostic information services, today announced that it plans to sell its HemoCue diagnostic products business, as part of the company's strategy to refocus on diagnostic information services. HemoCue develops, produces and markets point-of-care testing systems. As a result, Quest Diagnostics will report 2012 and 2011 results for HemoCue and its OralDNA products business, which was sold in December, 2012, as discontinued operations in its report of fourth quarter 2012 results, and take related after-tax charges in discontinued operations for the estimated asset impairment associated with HemoCue and the loss on sale associated with OralDNA, totaling $89.5 million, or $0.56 per diluted share, in the period.
The company's consolidated income statements for the full-year 2012 and 2011 will present the operating results of HemoCue and OralDNA as discontinued operations. As such, results from continuing operations will be reduced as follows:
-- Revenues by $117 million in 2012 and $119 million in 2011; -- Operating income by $11 million in 2012 and $8 million in 2011; -- Net income from continuing operations by $15 million in 2012 and $13 million in 2011; and -- Earnings per diluted share by $0.09 in 2012 and $0.08 in 2011.
Separately, the company today also announced it had finalized its analysis of the impact of Hurricane Sandy on its business, determining that fourth quarter 2012 revenues were reduced by an estimated $21 million, operating income by an estimated $16 million and earnings per diluted share by an estimated $0.06.
Quest Diagnostics will report fourth quarter and full-year 2012 results and provide financial guidance for 2013 on Wednesday, January 23, 2013 before the market opens. It will hold its quarterly conference call to discuss the results beginning at 8:30 a.m. Eastern Time on that day. Anyone listening to the call is encouraged to read the company's periodic reports, on file with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.
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