Cardinal Health Reports Second Quarter Results, Revises EPS Outlook

DUBLIN, Ohio, Jan. 29 /PRNewswire-FirstCall/ -- Cardinal Health , a global provider of products and services that improve the safety and productivity of health care, today reported a revenue increase of 7 percent to $23 billion during its second...


"This quarter, the Clinical and Medical Products (CMP) sector was again an exceptional value driver by accounting for 36 percent of our total segment profit," Clark said. "CMP continues to play a substantial role in our overall results with leading products in the areas of patient safety and infection prevention, both essential and rapidly growing segments of health care."

Revenue for the Medical Products and Technology segment grew 47 percent to $667 million driven by strong sales of infection prevention products and surgical instruments, and the addition of VIASYS Healthcare, which the company acquired last June. Segment profit increased 46 percent to $69 million and benefited from the VIASYS acquisition, which remains ahead of schedule in delivering synergies of $85 million to $100 million per year by fiscal 2010.

The Clinical Technologies and Services segment grew revenue 8 percent to $715 million for the quarter, with strong demand for Pyxis(R) dispensing and supply technologies and strength in Alaris(R) infusion products. Segment profit increased 26 percent to $115 million from favorable product mix and improved operating leverage. Segment profit was negatively affected by a $10

million charge for the Alaris(R) Pump module voluntary recall, bringing the total charges associated with the recall to $14 million.

Outlook

Cardinal Health lowered and narrowed the range it expects for fiscal 2008 non-GAAP diluted EPS to $3.75 to $3.85. It previously expected non-GAAP EPS in a range of $3.95 to $4.15. In making the change, Cardinal Health cited several factors that are having an impact on its Healthcare Supply Chain Services- Pharmaceutical segment, including the timing of new launches and deflationary environment for generic pharmaceuticals; expectations for branded price increases; the repricing of some large customer contracts; and the impact of anti-diversion enhancements.

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 617-213-4852, passcode 75450455. An audio replay will be available until 11:30 p.m. EST on Jan. 31 at 617-801-6888, passcode 63030220. 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 $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.