DUBLIN, Ohio, Aug. 8 /PRNewswire-FirstCall/ -- Cardinal Health, a global provider of products and services that improve the safety and productivity of health care, today announced its board of directors has authorized a $2 billion share repurchase program and elected IBM veteran Colleen Arnold as director.
The new, two-year repurchase authorization follows the recent completion of $4.1 billion in share buybacks since July 2006. The company’s long-term goal is to return up to 50 percent of its operating cash flow (1) to shareholders in the form of share buybacks and dividends. During the past two years, Cardinal Health has returned approximately $5.5 billion to shareholders.
In addition to joining the board effective today, Arnold, 50, was named to the Human Resources and Compensation Committee. Gregory Kenny, who was elected director effective Aug. 1, was appointed to the Audit Committee.
Arnold is general manager of IBM’s multi-billion dollar global Applications Services business within IBM Global Business Services. In this role she is responsible for end-to-end sales and delivery of IBM’s application services offerings, including nearly 60,000 employees in 70 countries. Since joining IBM in 1981, she has held management positions of increasing responsibility, including general manager of Northeast Europe, general manager, Global Services Australia and New Zealand and chief executive, Global Services Australia, a joint venture between IBM, Telstra, and Lend Lease. She holds a Master of Business Administration from Syracuse University and a Bachelor of Science in business from Nazareth College, both in New York State. She also serves on the board at the School of Management, Syracuse University.
The board of directors also approved a regular quarterly dividend of $0.12 per share payable on Oct. 15 to shareholders of record on Oct. 1. Cardinal Health has paid a quarterly dividend to shareholders for 92 consecutive quarters. The company had approximately 364 million shares outstanding as of July 31.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. is an $80 billion, global company serving the health-care industry with products and services that help hospitals, physician offices and pharmacies reduce costs, improve safety, productivity and profitability, and deliver better care to patients. With a focus on making supply chains more efficient, reducing hospital-acquired infections and breaking the cycle of harmful medication errors, Cardinal Health develops market-leading technologies, including Alaris(R) IV pumps, Pyxis(R) automated dispensing systems, MedMined(TM) data mining software and the CareFusion(TM) patient identification system. The company also manufactures medical and surgical products and is one of the largest distributors of pharmaceuticals and medical supplies worldwide. Ranked No. 19 on the Fortune 500 and No. 1 in its sector on Fortune’s ranking of Most Admired firms, Cardinal Health employs more than 40,000 people on five continents. More information about the company may be found at www.cardinalhealth.com.
(1) Operating Cash Flow: Net cash provided by/(used in) operating
activities from continuing operations.
This news release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These matters 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 10-Q and Form 8-K reports (including all amendments to those reports) and exhibits to those reports, and include (but are not limited to) the following: competitive pressures in its various lines of business; the loss of one or more key customer or supplier relationships or changes to the terms of those relationships; uncertainties relating to the timing of generic introductions and the frequency or rate of pharmaceutical price appreciation; changes in the distribution patterns or reimbursement rates for health-care products and/or services; the results, consequences, effects or timing of any inquiry or investigation by any regulatory authority or any legal and administrative proceedings; uncertainties related to finalizing the pending settlement of the class-action securities litigation, including obtaining court approval of the settlement; successful integration of Cardinal Health and VIASYS Healthcare and the ability to achieve synergies from the acquisition; uncertainties relating to the amount of future share repurchases by Cardinal Health, which can be affected by Cardinal Health’s then-current stock price, regulatory restraints on share repurchases, cash flows, financial condition and alternative uses of cash available to Cardinal Health at the time, as well as by the amount of any additional share repurchases authorized by the board of directors; and general economic and market conditions. This news release reflects management’s views as of August 8, 2007. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement.
Cardinal Health, Inc.
CONTACT: Media, Jim Mazzol, +1-614-757-3690, jim.mazzola@cardinal.com; orInvestors, Bob Reflogal, +1-614-757-7542, bob.reflogal@cardinal.com, bothof Cardinal Health, Inc.
Web site: http://www.cardinalhealth.com//
