Cardinal Health Reports Second Quarter Results

DUBLIN, Ohio , Feb. 5 /PRNewswire-FirstCall/ -- Cardinal Health, a global provider of products and services that improve the safety and productivity of health care, today reported solid fiscal second quarter results driven by top- and bottom-line...


Refer to the GAAP / Non-GAAP Reconciliation for definitions and calculations supporting the non-GAAP balances.

(1) Total consolidated revenue for the three months ended December 31, 2008 was $25.1 billion, which included total segment revenue of $25.6 billion and Corporate revenue of $(0.5) billion. Total consolidated revenue for the three months ended December 31, 2007 was $23.3 billion, which included total segment revenue of $23.8 billion and Corporate revenue of $(0.5) billion. Corporate consists primarily of elimination of inter-segment revenue.

(2) Total consolidated operating earnings for the three months ended December 31, 2008 were $538 million, which included total segment profit of $562 million and Corporate loss of $(24) million. Total consolidated operating earnings for the three months ended December 31, 2007 were $519 million, which included total segment profit of $511 million and Corporate profit of $8 million. Corporate includes, among other things, special items and impairments, (gain)/loss on sale of assets and other, net.

(1) Total consolidated revenue for the six months ended December 31, 2008 was $49.4 billion, which included total segment revenue of $50.4 billion and Corporate revenue of $(1.0) billion. Total consolidated revenue for the six months ended December 31, 2007 was $45.3 billion, which included total segment revenue of $46.2 billion and Corporate revenue of $(0.9) billion. Corporate consists primarily of elimination of inter-segment revenue.

(2) Total consolidated operating earnings for the six months ended December 31, 2008 were $964 million, which included total segment profit of $1,045 million and Corporate loss of $(81) million. Total consolidated operating earnings for the six months ended December 31, 2007 were $1,009 million, which included total segment profit of $1,025 million and Corporate loss of $(16) million. Corporate includes, among other things, special items and impairments, (gain)/loss on sale of assets and other, net.

(1) The average shareholders' equity shown above is calculated using the average of the prior and current quarters except for year-to-date which is calculated as the average of shareholders' equity at the end of the prior years' fourth quarter plus each of the current year quarters.

(2) See definitions for explanation of a change in the method of calculating these financial measures from prior quarters.

(3) Total invested capital is calculated as the sum of the current portion of long-term obligations and other short-term borrowings, long-term obligations, total shareholders' equity and unrecorded goodwill. The average total invested capital is calculated using the average of total invested capital at the end of the prior and current quarters except for year-to-date which is calculated as the average of the prior years' fourth quarter plus each of the current year quarters. Unrecorded goodwill is $7.5 billion for all periods presented.

Forward-Looking Non-GAAP Financial Measures

The Company presents non-GAAP earnings from continuing operations and non- GAAP effective tax rate from continuing operations (and presentations derived from these financial measures) on a forward- looking basis. The most directly comparable forward-looking GAAP measures are earnings from continuing operations and effective tax rate from continuing operations. The Company is unable to provide a quantitative reconciliation of these forward-looking non- GAAP measures to the most comparable forward-looking GAAP measures because the Company cannot reliably forecast special items, impairments, (gain)/loss on sale of assets and other, net and Other Spin-Off Costs, which are difficult to predict and estimate and are primarily dependent on future events. Please note

that the unavailable reconciling items could significantly impact the Company's future financial results.

(1) See definitions for explanation of a change in the method of calculating this financial measure from prior quarters.