The fall in demand for pathology services has forced Primary Health Care Ltd to expect lower earnings during this year. It operates pathology services and pathology centers around the county.

It expects total earnings before interest, tax, depreciation and amortization (EBITDA) for the year ending June 30, 2010 to be between $330 million and $340 million which is less than $355 million in the year 2009. Its forecast for the next year will also be lower and between $360 million and $380 million.

In a statement to the Australian Securities Exchange, the Company stressed that demand for services will continue to be lower in the coming days. Its growth trends have not been encouraging and across the industry there has been a decline in the overall demand for pathology services.

It also blames the federal cuts to have put business under pressure apart from competition and the deregulation of collection centre licenses. These new measures will be in effect from July 1, 2010 and further put pressure in the business.

Primary noted that it expects to declare a final dividend for 2010 of 10 cents per share.

Another pathology provider Sonic Healthcare Ltd had also expressed that earnings will be under pressure. Its shares were down $2.55, or 20.21 per cent, to $10.07 on Friday.

The shares of Primary Health Care were down 17 cents, or 4.26 per cent, lower at $3.82 at close on Friday.