Quest Sees Q4 Dip But Profit Growth Overall

New Jersey-based Quest Diagnostics Inc., which is establishing a Central Massachusetts presence in Marlborough through a partnership with UMass Memorial Health Care, saw its revenue and profits fall in the fourth quarter.

The diagnostic information services company said Hurricane Sandy, restructuring costs, debt repayments and CEO succession costs were partly to blame for fourth-quarter revenue dipping 4 percent to $1.77 billion compared to the same quarter a year ago.

Net income also fell year over year, from $189.5 million to $55.8 million.

For the full fiscal year, Quest's revenue was essentially unchanged at $7.38 billion and profits improved from $470.6 million to $555.7 million.

Steve Rusckowski, president and CEO of Quest, said the company's immediate strategic goal is to focus on its information services business, exemplified by the recent sale of Quest's OralDNA business and planned sale of its HemoCue subsidiary.

"We continued to pursue a disciplined approach to capital deployment, announcing a substantial increase in our dividend, repurchasing shares, and investing in strategic opportunities as exemplified by our new relationship with UMass Memorial Health Care," Rusckowski said in a statement.

For 2013, Quest expects revenue growth to be between zero and 1 percent and for earnings per diluted share to be between $4.35 and $4.55.

Quest completed its acquisition of UMMC's clinical outreach laboratory and anatomic pathology outreach divisions earlier this month. The company has signed a 200,000-square-foot lease in Marlborough, where it plans to employ up to 1,200 people. Quest will build a laboratory facility in the former Hewlett-Packard facility over the next 18 to 24 months.

UMass will have the option to invest in a minority financial stake in the business once the lab is built.

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