DUBLIN, Ohio, Nov. 5 /PRNewswire-FirstCall/ -- Cardinal Health, a global provider of products and services that improve the safety and productivity of health care, today reported a 15 percent increase in earnings per share during its first quarter, led by strong profit growth in its clinical and medical products businesses and ongoing programs to repurchase shares and streamline operations.
For the quarter ended Sept. 30, revenue increased 5 percent to $22 billion, operating earnings increased 9 percent to $490 million and earnings per share from continuing operations rose 15 percent to $0.82, or $0.86(1) on a non-GAAP basis.
“Our first quarter results were solid and led by very strong performance in our Clinical and Medical Products sector, which now accounts for 30 percent of segment profits,” said R. Kerry Clark, chief executive officer of Cardinal Health.
Cardinal Health also reaffirmed its annual earnings-per-share guidance, while lowering the profit outlook for its Healthcare Supply Chain Services- Pharmaceutical segment. The company continues to expect a strong second half of the fiscal year, led by continued growth in clinical and medical products and a significant increase in generic product introductions.
“We are disappointed with the performance in our Healthcare Supply Chain Services-Pharmaceutical segment, but have a positive outlook for the second half of the fiscal year for the company,” Clark said. “Our Clinical and Medical Products sector will be a key growth driver, and we also expect to benefit from new generic pharmaceutical launches and improvements in operational performance.”
Outlook
Cardinal Health reiterated its fiscal 2008 guidance range of $3.95 to $4.15 for non-GAAP diluted EPS from continuing operations. In addition, the company revised the outlook for its Healthcare Supply Chain Services- Pharmaceutical segment, which is now expected to grow profit during the year below its long term goal of 7 to 10 percent growth. Cardinal Health previously said profit growth for this segment was expected to be in line with the long term range.
Conference Call
Cardinal Health will host a conference call and webcast at 8:30 a.m. EST to discuss the results. To access the call and corresponding slide presentation, go to the Investor page at www.cardinalhealth.com. The conference call may also be accessed by calling 617-213-4857, passcode 21392080. An audio replay will be available until 11:30 p.m. EST on Nov. 7 at 617-801-6888, passcode 50524989. A transcript and audio replay will also be available at www.cardinalhealth.com.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. is an $87 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) infection surveillance services 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.
A reconciliation of the differences between these non-GAAP financial measures and their most directly comparable GAAP financial measures is provided in the attached tables and at http://www.cardinalhealth.com.
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 timing of generic introductions and the frequency or rate of branded pharmaceutical price appreciation or generic pharmaceutical price deflation; 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; successful integration of Cardinal Health and VIASYS Healthcare and the ability to achieve synergies from the acquisition; and general economic and market conditions. This news release reflects management’s views as of Nov. 5, 2007. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement.
CONTACT: Media, Jim Mazzola, +1-614-757-3690, jim.mazzola@cardinal.com, or
Investors, Bob Reflogal, +1-614-757-7542, bob.reflogal@cardinal.com
Web site: http://www.cardinalhealth.com//
