News and Media

Latest News Release
04/13/2021

Cardinal Health (NYSE: CAH) was awarded a $57.8 million contract, including options that if exercised by the U.S. Department of Health and Human Services (HHS) could reach $91.6 million, for the...

Top feature box IMAGE ONLY - COMPANY NEWS

Company News

Cardinal Health Reports First-Quarter Results
10/27/2006

DUBLIN, Ohio, Oct. 27, 2006 — Cardinal Health, the leading provider of products and services supporting the health-care industry, today announced first-quarter results, with revenue growth of 11 percent to $21.4 billion and earnings growth of 26 percent led by a strong quarter for its Healthcare Supply Chain Services-Pharmaceutical segment.

For the first quarter ended Sept. 30, earnings from continuing operations reached $300 million, resulting in a 33-percent increase in diluted earnings per share (EPS) from continuing operations to $0.73.   

“We executed well in our Healthcare Supply Chain Services-Pharmaceutical segment, which drove strong revenue and earnings growth for the company during the quarter,” said R. Kerry Clark, president and chief executive officer of Cardinal Health.  “Our other segments contributed more than 40 percent of total operating earnings, reflecting the diversity of our health-care products and services, and highlighting a key differentiator Cardinal Health brings to both customers and shareholders.  In particular, our Medical Products Manufacturing segment had an excellent quarter, its first as a standalone segment for Cardinal Health.”

Non-GAAP earnings from continuing operations1 increased 27 percent to $320 million and non-GAAP diluted EPS from continuing operations2 rose 32 percent to $0.78.  A $16.7 million tax reserve adjustment added $0.04 to EPS in the period.  Cardinal Health also reserved $13.5 million, or $0.02 per share, for a previously disclosed recall of its Alaris SE products.

Q1 FY07 Summary

  Q1 FY07 Q1 FY06 Y/Y
Revenue
$21.4 billion
$19.2 billion
11%
       
Operating Earnings
$464 million
$377 million
23%
Non-GAAP Operating Earnings3
$492 million
$400 million
23%
       
Earnings from Continuing Operations
$300 million
$238 million
26%
Non-GAAP Earnings from Continuing Operations
$320 million
$253 million
27%
       
Diluted EPS from Continuing Operations
$0.73
$0.55
33%
Non-GAAP Diluted EPS from Continuing Operations
$0.78
$0.59
32%


First quarter segment results:

  • Revenue for the Healthcare Supply Chain Services-Pharmaceutical segment grew 12 percent to $18.5 billion, with direct-store-door (DSD) pharmaceutical sales growing 14 percent to $10.1 billion and bulk customer sales growing 19 percent to $8.1 billion.  A strong generic sales mix, combined with expense controls during the quarter drove a 24-percent increase in operating earnings to $301 million, partially offset by continued sell-margin pressure.  Operating earnings in the first quarter of last year were affected by a $32-million charge related to vendor credits in prior periods.
  • Revenue for the Healthcare Supply Chain Services-Medical segment increased 2 percent to $1.8 billion due to moderate sales growth to hospitals and ambulatory care centers.  Sales of laboratory supplies and from Canadian operations continued to grow at a faster rate than the overall segment.  Operating earnings declined 10 percent to $74 million as the segment continued to transition to new customer service centers and a new sales model, and address competitive pricing within its Presource® surgical kitting business.
  • Revenue for the Clinical Technologies and Services segment increased 3 percent to $594 million, below company expectations due to the delayed introduction of two new products and the recall of its Alaris SE pump.  Of the delayed products, the Alaris PCU version 1.5 has now been released, and the Pyxis MedStation 3500 is in the final stages of limited release.  Operating earnings declined 14 percent from the prior year to $68 million due to these factors and planned investments in product development and quality and service improvements.
  • Revenue for the Pharmaceutical Technologies and Services segment increased 10 percent to $451 million and operating earnings increased 13 percent to $22 million.  Strong earnings growth in the segment’s softgel and Zydis® fast-dissolve pharmaceutical manufacturing operations and in its pharmaceutical packaging businesses were partially offset by declines in sterile manufacturing.  SG&A expenses as a percent of sales declined due to expense controls and ongoing operational excellence initiatives.
  • Revenue for the Medical Products Manufacturing segment increased 11 percent to $424 million and operating earnings grew 15 percent to $61 million.  Balanced results across the segment contributed to the strong quarter, including competitive wins in respiratory products, new contracts for Convertors® infection prevention products, contributions from recently acquired Denver Biomedical and overall volume growth.  Operating margins improved from the prior-year period because of recently completed facility restructurings, further progress in sourcing and SG&A expense control.


Additional first-quarter and recent highlights include:

  • Repurchase of $495 million of Cardinal Health stock as part of a two-year, $2 billion share repurchase program announced in August.
  • Acquiring MedMined, Inc., a medical analytics firm that will extend Cardinal Health’s patient-safety and clinical offerings.  MedMined serves 185 hospitals in the U.S. with technology and services that identify and prevent hospital-acquired infections.  The acquisition closed on July 18.
  • An agreement to acquire Care Fusion, Inc., an industry leader in wireless, barcode-enabled patient identification systems used by hospitals in 20 states.  Care Fusion was recently awarded a contract to implement its hand-held devices at the Veteran Health Administration’s 171 medical centers and 500 outpatient clinics.
  • Signing a seven-year contract with Triad, a HealthTrust Purchasing Group member, for Alaris hardware, software and disposable products. The deal, which is one of the largest Alaris contracts ever awarded, will provide infusion technology to protect patients from medication errors at 52 facilities nationwide.
  • Beginning commercial production at its new, sterile manufacturing facility in Raleigh, N.C.  Cardinal Health began manufacturing Panhematin®, a biologic therapy used to treat a rare genetic disorder, for Ovation Pharmaceuticals, Inc.


Outlook
For fiscal 2007, Cardinal Health reiterated that it expects non-GAAP diluted EPS from continuing operations to be $3.50 to $3.70. 

Conference Call
Cardinal Health will host a conference call and webcast at 11 a.m. Eastern Daylight Time (EDT) to discuss its 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 617-597-5313, conference passcode 71416649.  An audio replay is expected to be available until 11 p.m. on Nov. 3 at 617-801-6888, passcode 85650472.  A transcript and audio replay will also be available at www.cardinalhealth.com.

About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is an $81 billion, global company serving the health-care industry with a broad portfolio of products and services.  Through its diverse offerings, Cardinal Health delivers health-care solutions that help customers reduce their costs, improve safety and productivity, and deliver better care to patients.  The company manufactures, packages and distributes pharmaceuticals and medical supplies, offers a range of clinical services and develops automation products that improve the management and delivery of supplies and medication for hospitals, physician offices and pharmacies.  Ranked No. 19 on the Fortune 500, Cardinal Health employs more than 55,000 people on six continents.  More information about the company may be found at www.cardinalhealth.com.

###

1Non-GAAP earnings from continuing operations:  Earnings from continuing operations excluding special items and impairment charges and other, both net of tax.

2Non-GAAP diluted EPS from continuing operations:  Non-GAAP earnings from continuing operations divided by diluted weighted average shares outstanding.

3Non-GAAP operating earnings:  Operating earnings excluding special items and impairment charges and other.

A reconciliation of the differences between these non-GAAP financial measures and their most directly comparable GAAP financial measures is provided in these tables.

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, as amended.  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 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; 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 or settlement discussions with any regulatory authority or any legal and administrative proceedings, including shareholder litigation; difficulties in opening new facilities or fully utilizing existing capacity; the costs, difficulties and uncertainties related the integration of acquired businesses; and general economic and market conditions.  Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement.

More Company News
04/13/2021

Cardinal Health (NYSE: CAH) was awarded a $57.8 million contract, including options that if exercised by the U.S. Department of Health and Human Services (HHS) could reach $91.6 million, for the...

04/07/2021

By Victor Crawford, Chief Executive Officer of the Pharmaceutical segment at Cardinal Health

04/07/2021

Cardinal Health (NYSE: CAH) Specialty Solutions today launched Cardinal Health™ Navista™ Tech Solutions (TS), an advanced suite of technology solutions to help community oncologists improve...

03/30/2021

Cardinal Health (NYSE: CAH) plans to release third-quarter financial results for its fiscal year 2021 on May 6 prior to the opening of trading on the New York Stock Exchange. The company will...

View all company news »

* Required Fields