Laboratory Corporation of America (LabCorp – New York Stock Exchange Symbol LH) recently reported an increase in fourth-quarter net earnings to $142.7 million, as compared to $118.1 million for the 4th quarter of 2008. The increase in earning were due partly to a gain of $21.5 million from resolving state tax issues and realizing foreign tax credits.

LabCorp’s total revenues for the fourth quarter rose to $1.17 billion, up from $1.12 billion the year before. For the full year, the company had profits of $543.3 million, up from earnings of $464.5 million in 2008. The increase also includes all the income from the labs that Labcorp has acquired.

Labcorp also announced that it will be spending $250 Million to buy back shares of their own stock. Labcorp’s Chairman and CEO David King said “ We remain optimistic about the growth opportunities that lie ahead for us in 2010, and we are well positioned to capitalize on them.”  I highlight the word lie because while he was making the statement, he was filing with the Securities and Exchange Commission that he had just sold shares of LabCorp stock and pocketed over $171,960 in profits. You would think that when the head of a company announces positive results and claims to be “optimistic about the growth opportunities” he would be buying stock, not selling it. But then he owns lots of LabCorp stock and could have sold for other reasons.

One thing that LabCorp CEO David P. King didn’t boast about is that of a rumored investigation of LabCorp by the US Department of Labor, Employment Standards Administration, Office of Federal Contract Compliance Program. According to posts in CafePharma.com, LabCorp’s Florida operations are in trouble. They had to settle an employment lawsuit at a rumored cost of about $2.7 Million. In addition, they have a pending Federal lawsuit from a former employee that has not gone too well for them. With allegations of witness tampering and obstruction of justice, LabCorp has had to fire the law firm that was handling the case. The posts include the following:

OFCCP would like to hear from those who have been discriminated against based on a protected characteristic. (personal info removed) A formal recommendation has been made for an investigation of LCA Florida. Those who aren’t afraid to get their hands dirty, write:

US Department of Labor
Employment Standards Administration
Office of Federal Contract Compliance Program
Charles E Bennett Federal Building
400 West Bay Street
Room 939
Jacksonville, Florida 32202

or call:

(904) 351-0551

SUBJECT: LABCORP CONDUCT IN FLORIDA.

 All correspondence is confidential. 

LabCorp’s stock hit a new 52-week low today after posting less than expected sales and profits. Even LabCorp supporting analysts downgraded the stock. Here’s one headline from MarketWatch “S&P DOWNGRADES OPINION ON SHARES OF LABCORP OF AMERICA…” Here’s another one “Laboratory Corp. Of America Holdings’ second-quarter net income fell 19% on restructuring costs as the lab-services provider lowered its 2008 outlook.”

At one point during the day LH stock was down almost $7, losing over 10% of the company’s market value. Laboratory Corporation of America’s stock trades on the New York Stock Exchange under the symbol LH.

LabCorp stock is listed in the New York Stock Exchange with a symbol of LH. LabCorp’s stock price has been declining steadily. As on July 20, 2008 the stock has a 52-week high of $81.11 and a low of $65.13. The high was hit on 07/18/2007 and the low on 11/05/2007. It has been lingering around its lows. If you are an investor or hold shares of LabCorp, tell us your story.