The addition of LabCorp's new Covance drug-development business brought in most of its additional revenue in the fourth quarter, although restructuring charges drove profits slightly down.
The Burlington, N.C.-based diagnostics giant reported $2.24 billion in revenue in the three months ended Dec. 31, 2015, up 48% from $1.51 billion during the same period the year before, a result primarily to the Covance acquisition. Only 4.1% of the revenue increase was driven by organic volume growth, price, mix or smaller acquisitions.
Formally known as Laboratory Corporation of America Holdings, the company reported $114.2 million in profit, down 5% from $119.6 million during the same period the prior year, impacted by $86.4 million in restructuring charges and special items. The company is engaged in a major cost-cutting initiative called Project LaunchPad, which it says generated approximately $20 million in net benefits for the quarter.
Restructuring charges also put a damper on LabCorp's fiscal year profit of $436.9 million, down 15% from the year before. The corporation recorded $279.5 million in restructuring charges and special items in fiscal 2015. Full-year revenue was $8.51 billion, up 41.5% from the year before, thanks mostly to Covance. About 4.8% of increased revenue was the result of organic growth and other gains.
The company said in its 2016 guidance that it expects overall net revenue growth of 7.5% to 9.5% over its 2015 revenue, and a 7% to 12% increase in adjusted earnings per share.