DUBLIN, Ohio, Oct. 27, 2011 /PRNewswire/ -- Cardinal Health today reported fiscal year 2012 first-quarter revenue of $26.8 billion and an 11 percent increase in non-GAAP diluted earnings per share (EPS) to $0.73. On a GAAP basis, diluted EPS from continuing operations declined 19 percent to $0.68, reflecting a prior-year gain of $0.21 from the sale of CareFusion stock. Strong revenue growth was driven by 10 percent revenue increases in both the Pharmaceutical and Medical segments. Results reflected 16 percent growth in non-GAAP operating earnings, led by a 19 percent increase in Pharmaceutical segment profit.
"Our fiscal 2012 has started with a solid first quarter, driven by strong revenue gains from both of our segments, continued progress on our margin initiatives and contributions from our recent acquisitions," said George Barrett, chairman and chief executive officer of Cardinal Health. "While we're pleased with the performance of our business in this first quarter, we're even more excited about the growth in strategic priority areas including specialty, positron emission tomography, generics, ambulatory, preferred medical products and China. Our progress in these areas provides increasing confidence that we're positioning well for future growth."
The company reaffirmed its fiscal 2012 outlook for non-GAAP diluted earnings per share of $3.04 to $3.19.
Q1 FY12 SUMMARY
Q1 FY12 | Q1 FY11 | Y/Y | ||
Revenue | $26.8 billion | $24.4 billion | 10% | |
Operating Earnings | $412 million | $364 million | 13% | |
Non-GAAP Operating Earnings | $442 million | $382 million | 16% | |
Earnings from Continuing Operations | $237 million | $294 million | (19)% | |
Non-GAAP Earnings from Continuing Operations(3) | $256 million | $231 million | 11% | |
Diluted EPS from Continuing Operations | $0.68 | $0.84 | (19)% | |
Non-GAAP Diluted EPS from Continuing Operations | $0.73 | $0.66 | 11% | |
As previously announced, the companys non-GAAP operating earnings, non-GAAP earnings from continuing operations and non-GAAP diluted EPS from continuing operations definitions exclude amortization of acquisition-related intangible assets for all periods presented. | |
SEGMENT RESULTS
Pharmaceutical segment
Revenue for the Pharmaceutical segment increased 10 percent to $24.4 billion, including significant contribution from acquisitions completed in FY11 and growth from existing customers. Segment profit increased 19 percent to $363 million, reflecting the contribution of the acquisitions and the performance of generics programs.
Q1 FY12 | Q1 FY11 | Y/Y | ||
Revenue | $24.4 billion | $22.3 billion | 10% | |
Segment Profit | $363 million | $306 million | 19% | |
Medical segment
Revenue for the Medical segment increased 10 percent to $2.4 billion, primarily driven by growth from existing and net new customers and the transition of CareFusion from fee-for-service to traditional distribution agreement. As anticipated, segment profit declined 5 percent to $79 million, as profit increases from the company's preferred products programs and the volume relating to both existing and net new customers were negatively offset by commodity costs and the impact associated with the previously disclosed Presource® kit matter.
