Primary Health Care Ltd., a medical center operator and pathology provider in Australia, lowered its earning guidance for the full year ending June 30, 2010. Primary expects a decline of around 7% in its profit for the full year. The company said that the expected lower profit is mainly attributable to the declining demand for medical tests.

In a statement to the Australian Securities Exchange, Primary said that in expects earnings before interest, taxes, depreciation and amortization of $A330 to $A340 million for the year ending June 30. Primary had reported EBITDA of $A355 million in the previous corresponding period.

"Pathology volumes have continued flat and have not returned to a long term growth trend since the company announced first-half earnings in February, said Primary in a statement.

This new guidance of the company is reported below the estimates of market analysts who are expecting EBITDA of $A360 million in the full year. However, Primary also said that it expects EBITDA of $A360 million to $A380 million in the financial year ending June 2011.

Primary also said that the proposed pathology funding cuts by federal budget will put additional pressure on costs.