Testing times: But Sonic Healthcare is still growing strong. Photo: Jim Rice

PATHOLOGY and radiology group Sonic Healthcare expects to hit its full-year pre-tax earnings target of 10-15 per cent growth as it reaps the rewards of strong organic revenue growth, market share gains in Australia and margin expansion in Germany.

Sonic also says it will expand its margins in North America where its business has increased market share despite the weak economic environment.

Chief executive Colin Goldschmidt said yesterday pathology was an ''absolute essential service'' in the healthcare sector and Sonic had incredible infrastructure in Australia, Germany and the US.

Advertisement: Story continues below

''It really is a very nice position to be in going into the future, despite the uncertainties of the global climate et cetera,'' Dr Goldschmidt said. ''It's a sector that tends to be shielded in some way from some of the downturns that occur in other sectors because it is an essential service.''

Sonic, which also has healthcare businesses in New Zealand, Belgium and Switzerland, has posted a 6 per cent lift in interim net profit to $143 million, or in constant-currency terms up 8 per cent to $146 million.

Statutory revenue was 9 per cent better at $1.64 billion, but up 12 per cent to $1.69 billion in constant-currency terms.

The company has declared an interim dividend of 24¢ a share, which is unchanged from the previous year.

Dr Goldschmidt said headwinds from the strong Australian dollar had softened the company's results, but did not affect underlying performance.

''In a time of global uncertainty and weak economic conditions, Sonic's operations continue to perform strongly, taking market share from competitors and increasing margins,'' Dr Goldschmidt said.

Sonic was on track to deliver growth in earnings before interest, tax, depreciation and amortisation of 10-15 per cent over the 2010-11 level of $570 million, he said.

See original here:
Sonic sounds depths of growth