Quest Diagnostics Details Strategy at 2012 Investor Day
-- Increases Invigorate Cost Reduction Goal by $100 Million to $600 Million --
-- Announces 76% Increase in Dividend to $1.20 per Share Annually --
MADISON, N.J., Nov. 16, 2012
MADISON, N.J., Nov. 16, 2012 /PRNewswire/ --As previously announced, Quest
Diagnostics Incorporated (NYSE: DGX), the world's leading provider of
diagnostic information services, will host its Investor Day today, November
16, 2012 in New York City.
During the event, Quest Diagnostics executives will share their views of the
industry and the company's strategy and plans to drive shareholder value.
Speakers will include Stephen Rusckowski,President and Chief Executive
Officer; Robert Hagemann, Senior Vice President and Chief Financial Officer;
and several members of the company's senior management team.
As part of the program for Investor Day, Quest Diagnostics will discuss the
company's refreshed vision, goals, strategy and organizational structure.
Additionally, management will discuss the company's new five-point strategic
oRefocus on diagnostic information services;
oDrive operational excellence;
oSimplify the organization to drive growth and productivity; and
oDeliver disciplined capital deployment and strategically aligned accretive
Consistent with management's previously announced intent to deliver greater
cost savings in a shorter time frame, the company plans to announce it has now
increased its cost savings commitment related to its Invigorate initiative by
$100 million. It will indicate that it now expects to exit 2014 with run-rate
savings of $600 million, increased from the previously announced goal of $500
million. Management also is now committing to deliver $500 million of savings
In addition, Quest Diagnostics' Board of Directors authorized a 76% increase
in its quarterly dividend to $0.30 per share, or $1.20 per share annually,
payable on January 28, 2013, to shareholders of record of Quest Diagnostics
common stock on January 11, 2013.
"This dividend increase is consistent with our previously stated commitment to
return the majority of our free cash flow to shareholders, underscoring
confidence in our continued ability to generate strong cash flow in the
future," said Mr. Rusckowski.
"We are refocusing on our core diagnostic information services business and on
driving operational excellence and restoring growth," continued Mr.
Rusckowski. "In addition, we are pleased with progress we are making
simplifying the organization, based upon the reorganization announced in
In addition, Quest Diagnostics reiterated its expectations for 2012 results
from continuing operations, before special items and before the anticipated
impact of Hurricane Sandy. More specifically, the company expects:
oRevenues to grow approximately 0.5%;
oEarnings per diluted shareto be between $4.45 and $4.55;
oOperating income as a percentage of revenuestoapproximate 18%;
oCash provided by operationstoapproximate $1.2 billion; and
oCapital expenditurestoapproximate $180 million.
A live webcast of the event will be broadcast simultaneously on the Investor
Relations page of the Quest Diagnostics website for all interested parties.
To access the webcast or a replay of the event, visit:
www.QuestDiagnostics.com/investor. The webcast will begin promptly at 9:00 am
and conclude at 12:30 pm. A replay will be available following the meeting.
About Quest Diagnostics
Quest Diagnostics is the world's leading provider of diagnostic information
services that patients and doctors need to make better healthcare decisions.
The company offers the broadest access to diagnostic information services
through its network of laboratories and patient service centers, and provides
interpretive consultation through its extensive medical and scientific staff.
Quest Diagnostics is a pioneer in developing innovative diagnostic tests and
advanced healthcare information technology solutions that help improve patient
care. Additional company information is available at QuestDiagnostics.com.
The statements in this press release which are not historical facts may be
forward-looking statements. Readers are cautioned not to place undue reliance
on forward-looking statements, which speak only as of the date that they are
made and which reflect management's current estimates, projections,
expectations or beliefs and which involve risks and uncertainties that could
cause actual results and outcomes to be materially different. Risks and
uncertainties that may affect the future results of the company include, but
are not limited to, adverse results from pending or future government
investigations, lawsuits or private actions, the competitive environment,
changes in government regulations, changing relationships with customers,
payers, suppliers and strategic partners and other factors discussed in
"Business," "Risk Factors," "Cautionary Factors that May Affect Future
Results," "Legal Proceedings," "Management's Discussion and Analysis of
Financial Condition and Results of Operations," and "Quantitative and
Qualitative Disclosures About Market Risk" in the company's 2011 Annual Report
on Form 10-K and "Management's Discussion and Analysis of Financial Condition
and Results of Operations," "Quantitative and Qualitative Disclosures About
Market Risk," and "Risk Factors" in the company's Quarterly Reports on Form
10-Q and other items throughout the Form 10-K and the company's 2012 Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.
Contacts: Kathleen Valentine (Investors): 973-520-2900 and Wendy Bost (Media):
SOURCE Quest Diagnostics Incorporated
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