Quest Diagnostics' ($DGX) long-time chief financial officer is stepping down at the end of May, and the company is actively searching for a replacement. The change hits in the midst of a reorganization and sluggish revenue.
|Robert Hagemann--Courtesy of Quest|
Robert Hagemann has been at Quest since 1992 and served almost 15 years in the CFO slot. Quest wouldn't comment when asked to speak directly about why Hagemann is leaving. His departure isn't necessarily connected to the overall corporate changes, but Hagemann's prepared statement included in the company's announcement might be telling.
"We have a new clear strategy and an outstanding team that is leading the company forward," Hagemann said. "At this point, after 21 years with the company and almost 15 years as the CFO, we agreed now is a good time for a change."
Quest CEO Steve Rusckowski, meanwhile, put a positive spin on the departure, noting in a statement that Quest "benefited enormously" from Hagemann's experience "over his long tenure with the company."
Quest's 2012 fourth quarter reflected a 24% drop in net income, to $140 million. Revenue and test volume also declined, the company's overall revenue at $7.4 billion remained flat in 2012 compared to 211, and 2013's growth projections are virtually nonexistent. And the company is in the middle of its "Invigorate" plan, which includes managerial structural changes, a reorganization of its business units and the sale of divisions such as its HemoCue business and its lab salivary diagnostics line. The overall effort is expected to save $500 million over the course of 2013.
Quest, meanwhile, is looking at internal and outside candidates for its new CFO. Hagemann remains in his job through May 31, 2013, unless the company makes a quick hire who can take over before then.
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