Quest Diagnostics 2005 Annual Report Download - page 4

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฀ ฀ ฀ Each฀year,฀hundreds฀of฀thousands฀of฀people฀undergo฀painful฀bone฀marrow฀biopsies฀so฀their฀physicians฀can฀
diagnose฀or฀monitor฀the฀treatment฀of฀leukemia฀and฀lymphoma.฀Doctors฀sometimes฀refrain฀from฀frequent฀testing฀
to฀ monitor฀ their฀ patients฀ for฀ fear฀ of฀ causing฀ undue฀ pain.฀ In฀ 2005,฀ scientists฀ at฀ our฀ Quest฀ Diagnostics฀ Nichols฀
Institute฀ developed฀ Leumeta™฀ cancer฀ tests฀ to฀ provide฀ patients฀ and฀ their฀ doctors฀ with฀ vital฀ information฀ about฀
their฀disease฀using฀a฀simple-to-obtain฀blood฀sample฀rather฀than฀a฀much฀more฀invasive฀bone฀marrow฀biopsy.
฀ ฀ ฀ At฀Quest฀Diagnostics,฀our฀first฀responsibility฀is฀to฀patients.฀The฀convenient฀new฀Leumeta฀cancer฀tests฀
are฀just฀one฀way฀that฀we฀demonstrate฀our฀commitment.
Focused฀on฀Patients,฀Growth฀and฀People
฀ ฀ ฀ Our฀strategy฀is฀based฀on฀three฀simple฀but฀profound฀words—Patients,฀Growth฀and฀People.฀As฀such,฀our฀
focus฀is฀on฀enhancing฀the฀overall฀experience฀we฀offer฀our฀patients;฀driving฀profitable฀growth;฀and฀facilitating฀
the฀success฀of฀the฀41,500฀people฀who฀truly฀represent฀Quest฀Diagnostics.
฀ ฀ ฀ I฀am฀pleased฀to฀report฀that฀during฀2005฀we฀made฀significant฀progress฀in฀each฀dimension฀of฀our฀strategy,฀
as฀detailed฀in฀the฀pages฀that฀follow.฀We฀embarked฀on฀a฀journey฀to฀distinguish฀ourselves฀through฀exceptional฀
patient฀and฀customer฀service.฀We฀drove฀profitable฀growth฀and฀generated฀significant฀cash฀flow,฀which฀increased฀
shareholder฀value.฀We฀expanded฀our฀innovation฀pipeline฀and฀acquired฀LabOne,฀which฀strengthened฀our฀existing฀
business฀and฀extended฀our฀reach฀into฀a฀new฀market.฀And,฀by฀providing฀our฀employees฀incentives฀and฀tools฀to฀
improve฀their฀health,฀we฀are฀demonstrating฀that฀early฀detection฀of฀disease฀really฀can฀improve฀outcomes฀and฀
reduce฀ costs.฀ As฀ a฀ result฀ of฀ these฀ accomplishments,฀ we฀ made฀ significant฀ strides฀ in฀ positioning฀ Quest฀
Diagnostics฀for฀long-term฀success.
Generating฀Strong฀Financial฀Results
฀ ฀ ฀ We฀drove฀strong฀financial฀results฀for฀2005฀by฀performing฀more฀testing฀on฀behalf฀of฀more฀doctors฀and฀
more฀patients.฀For฀the฀year,฀we฀increased฀revenues฀over฀7฀percent;฀posted฀a฀13฀percent฀increase฀in฀earnings฀
per฀ share;฀ and฀ generated฀ $ 852฀ million฀ in฀ cash฀ flow฀ from฀ operations,฀ which฀ we฀ invested฀ for฀ growth฀ and฀
returned฀to฀shareholders฀through฀dividends฀and฀share฀repurchases.฀These฀results฀were฀achieved฀despite฀the฀
disappointing฀performance฀of฀our฀test-kit฀manufacturing฀subsidiary,฀NID.฀Early฀in฀2006,฀we฀increased฀the฀quar-
terly฀dividend฀11฀percent฀and฀expanded฀our฀share฀repurchase฀program฀by฀$600฀million.
»฀฀To฀Our฀Shareholders,฀฀
Employees฀and฀Customers:
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