Covance 1Q12

1Q Revenues: $531 million (+7%)

1Q Earnings: $36 million (+9%)

Comments: Early Development Services dropped 6% to $212 million due to lower than expected volumes in box and discovery support services, while Late-Stage Development was up 15% to $319 million with a 25% growth in clinical development and 4% uptick in central laboratory services. The company announced plans to close a facility in Chandler, AZ and engage in other Early Development restructurings to improve earnings by $20 million. Tox room capacities will drop to 2007 levels. The company is considering further cost cuts if the Early Development situation doesn't improve.