Quest Diagnostics 2007 Annual Report Download - page 4

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2007 Financial Highlights
Our financial performance improved
steadily through the year.
•฀฀Revenues฀increased฀7%฀to฀$6.7฀billion.
•฀฀Operating฀income฀was฀$1.1฀billion,฀or฀
16.3%฀of฀revenues.
•฀Cash฀from฀operations฀was฀$927฀million.
•฀฀Net฀earnings฀per฀diluted฀share฀from฀
continuing฀operations฀were฀$2.84.
Positioned for Growth
Our company is far stronger today than it
was฀at฀the฀start฀of฀2007.฀We฀have฀signed฀
new contracts, organized for growth,
streamlined our operations and acquired
unique assets and capabilities. As a result,
we exited the year with annualized revenues
of฀$7฀billion,฀improved฀profitability฀from฀
the year before and accelerated momen-
tum฀as฀we฀entered฀2008.
The opportunities have never been greater
for the diagnostics industry. Healthcare
has been focused for much of the past
decade or two on therapies that cure dis-
ease฀and฀relieve฀pain.฀Now฀the฀healthcare฀
world is moving from a focus on curative
care to a reliance on early diagnosis and
prevention, including the expanded use
of targeted medicine.
Doctors and patients seek ways to detect
potential problems early, when there is
time to take preventive action.
Pharmaceutical companies are searching
for promising new therapies, and we
can help with companion diagnostic
tests that will truly usher in the age of
personalized medicine.
Across the globe in developing nations,
an emerging middle class is becoming
interested in their health and in preventing
disease.
We are well positioned to take advantage
of these major trends.
Execution, Value, Leadership
Flawless execution of our strategy is the
key to growing both the top and bottom
lines.฀Now฀is฀the฀time฀to฀execute฀and฀
realize our ambitious dreams.
At Quest Diagnostics we strive constantly
to find new ways to create value for custom-
ers. We create value with Six Sigma quality,
unsurpassed access and convenience, inno-
vative science and medicine and advanced
healthcare information technology.
When we execute and create value, we
lead. I am proud of the determination and
resolve฀of฀our฀43,000฀colleagues฀who฀are฀
leading our industry forward through their
expertise, hard work and dedication.
During฀2007฀we฀were฀saddened฀by฀the฀
passing฀of฀William฀R.฀Grant,฀a฀leader฀who฀
had served as a member of the Quest
Diagnostics฀Board฀of฀Directors฀since฀1999.฀
Bill was a good friend and trusted adviser.
His integrity, professionalism, knowledge
and friendship are deeply missed.
A Successful Strategy
We have a successful strategy based on
three simple but profound words: Patients,
Growth฀and฀People.฀We฀have฀a฀compelling฀
mission to be the undisputed world leader
2007 was a year of significant achievements for Quest Diagnostics.
The year started with uncertainty regarding industry pricing and access to
health plan contracts. During the course of the year, we took a series of
decisive actions to reduce that uncertainty, improve performance and
build a solid foundation for future growth.
By the end of 2007, despite a major contract loss, intensified competition
and pricing pressure, we had re-established growth in revenues, earnings
and cash flow.
TO OUR SHAREHOLDERS, EMPLOYEES AND CUSTOMERS:
Page 2 QU E S T DI A G N O S T I C S 2007 AN N U A L RE P O R T