Cardinal Health Borrows $750 Million To Ramp New National Logistics Center
DUBLIN, Ohio, Oct. 20 /PRNewswire-FirstCall/ -- Cardinal Health, Inc. today announced it has borrowed $750 million from existing credit facilities to meet short-term working capital needs primarily associated with the start-up of its new National Logistics Center (NLC) in Groveport, Ohio and other seasonal inventory requirements.
The NLC is a centralized facility designed to further improve efficiency within Cardinal Health's pharmaceutical distribution operations. It is a single, national point of entry for inventory of certain manufacturers' product lines. This inventory is held at the NLC and used to replenish the company's 26 regional distribution centers. The NLC has been operational since Sept. 30. The need for incremental inventory at the NLC is expected to be temporary as the company sells existing backup stock in its regional distribution centers. The inventory purchase was planned as part of the start-up investment associated with the NLC, which has been under development and construction since early-2004.
The company said its overall liquidity remains strong, with more than $2.1 billion of cash as of Oct. 20, which includes the recent $750 million draw. In addition, the company has incremental borrowing capacity, along with commitments for additional borrowing, which total $750 million. The company continues to expect free cash flow for fiscal 2005 to exceed 60 percent of net earnings and foresees no other unusual cash needs for the remainder of the fiscal year.
About Cardinal Health
Cardinal Health, Inc. ( http://www.cardinal.com/ ) is the leading provider of products and services supporting the health care industry. Cardinal Health develops, manufactures, packages and markets products for patient care; develops drug-delivery technologies; distributes pharmaceuticals and medical, surgical and laboratory supplies; and offers consulting and other services that improve quality and efficiency in health care. Headquartered in Dublin, Ohio, Cardinal Health employs more than 55,000 people on six continents and produces annual revenues of more than $50 billion. Cardinal Health is ranked No. 17 on the current Fortune 500 list and named one of the best U.S. companies by Forbes magazine for 2004.
Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Cardinal Health's Form 10-K, Form 8-K and Form 10-Q reports (including all amendments to those reports) and exhibits to those reports, and include (but are not limited to) the costs, difficulties, and uncertainties related to the integration of acquired businesses, the loss of one or more key customer or supplier relationships or changes to the terms of those relationships, changes in the distribution patterns or reimbursement rates for health-care products and/or services, the results, effects or timing of any inquiry or investigation by any regulatory authority or any legal and administrative proceedings, and general economic and market conditions. Cardinal Health undertakes no obligation to update or revise any forward-looking statement.Cardinal Health, Inc.
CONTACT: Media, Jim Mazzola, +1-614-757-3690, firstname.lastname@example.org, or Investors, Jim Hinrichs, +1-614-757-7828, email@example.com, both of Cardinal Health, Inc.
Web site: http://www.cardinal.com/