DUBLIN, Ohio, Nov. 5 Cardinal Health, a globalprovider of products and services that improve the safety and productivity ofhealth care, today reported a 15 percent increase in earnings per share duringits first quarter, led by strong profit growth in its clinical and medicalproducts businesses and ongoing programs to repurchase shares and streamlineoperations.
For the quarter ended Sept. 30, revenue increased 5 percent to $22billion, operating earnings increased 9 percent to $490 million and earningsper share from continuing operations rose 15 percent to $0.82, or $0.86(1) ona non-GAAP basis.
"Our first quarter results were solid and led by very strong performancein our Clinical and Medical Products sector, which now accounts for 30 percentof segment profits," said R. Kerry Clark, chief executive officer of CardinalHealth.
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 halfof the fiscal year, led by continued growth in clinical and medical productsand a significant increase in generic product introductions.
"We are disappointed with the performance in our Healthcare Supply ChainServices-Pharmaceutical segment, but have a positive outlook for the secondhalf of the fiscal year for the company," Clark said. "Our Clinical andMedical Products sector will be a key growth driver, and we also expect tobenefit from new generic pharmaceutical launches and improvements inoperational performance."
Cardinal Health reiterated its fiscal 2008 guidance range of $3.95 to$4.15 for non-GAAP diluted EPS from continuing operations. In addition, thecompany revised the outlook for its Healthcare Supply Chain Services-Pharmaceutical segment, which is now expected to grow profit during the yearbelow its long term goal of 7 to 10 percent growth. Cardinal Healthpreviously said profit growth for this segment was expected to be in line withthe long term range.
Cardinal Health will host a conference call and webcast at 8:30 a.m. ESTto discuss the results. To access the call and corresponding slidepresentation, go to the Investor page at www.cardinalhealth.com. Theconference call may also be accessed by calling 617-213-4857, passcode21392080. An audio replay will be available until 11:30 p.m. EST on Nov. 7 at617-801-6888, passcode 50524989. A transcript and audio replay will also beavailable at www.cardinalhealth.com.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is an $87billion, global company serving the health care industry with products andservices that help hospitals, physician offices and pharmacies reduce costs,improve safety, productivity and profitability, and deliver better care topatients. With a focus on making supply chains more efficient, reducinghospital-acquired infections and breaking the cycle of harmful medicationerrors, Cardinal Health develops market leading technologies, includingAlaris(R) IV pumps, Pyxis(R) automated dispensing systems, MedMined(TM)infection surveillance services and the CareFusion(TM) patient identificationsystem. The company also manufactures medical and surgical products and isone of the largest distributors of pharmaceuticals and medical suppliesworldwide. Ranked No. 19 on the Fortune 500 and No. 1 in its sector onFortune's ranking of Most Admired firms, Cardinal Health employs more than40,000 people on five continents. More information about the company may befound at www.cardinalhealth.com.
A reconciliation of the differences between these non-GAAP financialmeasures and their most directly comparable GAAP financial measures isprovided in the attached tables and at http://www.cardinalhealth.com.