DUBLIN, Ohio, Jan. 8 /PRNewswire-FirstCall/ -- Cardinal Health today
announced it expects to report solid earnings per share (EPS) results for its
fiscal second quarter, but provided caution for the remainder of the fiscal
year because of a deferral in hospital capital spending affecting its Clinical
and Medical Products segment.
Non-GAAP diluted EPS from continuing operations(1) for the company's
fiscal second quarter, ended Dec. 31, 2008, is anticipated to be at least
$0.90, driven by solid operating results and a better than expected tax rate.
In addition, the company reaffirmed its previously announced full-year revenue
and segment profit goals for its Healthcare Supply Chain Services segment, but
is updating its EPS guidance for the full year.
"It is difficult to forecast the exact duration and potential long-term
changes in hospital spending patterns, but the company is taking appropriate
cost actions to mitigate the impact," said R. Kerry Clark, chairman and CEO of
Cardinal Health. "Based on our current data, we anticipate full-year non-GAAP
EPS to be in a range of $3.50 to $3.60 versus a previously provided range of
$3.80 to $3.95."
David Schlotterbeck, CEO of Clinical and Medical Products said, "With the
delay in hospital capital spending, we expect softness in our capital
equipment sales to continue in the second half of the fiscal year. It is
important to note that more than 40 percent of our Clinical and Medical
Products business comes from the sale of disposable products and remains
stable. There are also segments of our capital equipment business less
affected, and therefore we expect Clinical and Medical Products segment
results for the fiscal year to be flat or better than last fiscal year."
George Barrett, CEO of Healthcare Supply Chain Services said, "Our team
has made considerable progress over the past nine months, and in spite of an
extraordinary economic climate, we remain on track to achieve our goals for
fiscal 2009."
Full-year goals for the Healthcare Supply Chain Services segment remain
unchanged with revenue growth expected to be in excess of 6 percent and
segment profit expected to be flat to down 5 percent, with a return to
profitable growth in the second half of the fiscal year.
Today's Conference Call
The company has scheduled a webcast and conference call today from 8:30 to
9 a.m. EST to discuss the Clinical and Medical Products segment. There will
be no slide presentation associated with this call. To access the call,
please visit the investor page at www.cardinalhealth.com or dial 617-597-5309,
passcode 68191705. A replay will be available until 11 p.m. on Jan. 10 by
calling 617-801-6888, passcode 26800370.
As previously announced, the company will be presenting in two separate
sessions at the J.P. Morgan Healthcare Conference at 5:30 p.m. and 6:30 p.m.
EST on Wednesday, Jan. 14. Webcast information can be found on the investor
page of the company's Web site at www.cardinalhealth.com.
Q2 Earnings
Cardinal Health plans to release second-quarter results for fiscal 2009 on
Thursday, Feb. 5, prior to the opening of trading on the New York Stock
Exchange. The company has scheduled a webcast and conference call for Feb. 5
at 8:30 a.m. EST to discuss results of the quarter. To access the call and
corresponding slide presentation, visit the investor page at
www.cardinalhealth.com or dial 617-213-4845, passcode 86908096.
Participants are advised to pre-register at the investor page at
www.cardinalhealth.com or to dial into the call at least 10 minutes prior to
the start time. Pre-registrants are issued a pin number that provides faster
access to the live call. Presentation slides, an audio replay and a transcript
will be archived on the Web site after the conclusion of the meeting. The
audio replay will also be available until 11 p.m. EST on Feb. 7 by dialing
617-801-6888, passcode 38752008.
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $91
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)
electronic infection surveillance service, VIASYS(R) respiratory care products
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, Cardinal Health employs more than 40,000 people on five
continents. More information about the company may be found at
www.cardinalhealth.com.
(1) Non-GAAP diluted EPS from continuing operations: Earnings from
continuing operations excluding special items and impairments,
(gain)/loss on sale of assets and other, net, both net of tax, divided
by diluted weighted average shares outstanding.
Non-GAAP Financial Measures
Cardinal Health presents non-GAAP earnings from continuing operations (and
presentations derived from this financial measure, including per share
calculations) on a forward-looking basis. The most directly comparable
forward-looking GAAP measure is earnings from continuing operations. The
company is unable to provide a quantitative reconciliation of this forward-
looking non-GAAP measure to the most directly comparable forward-looking GAAP
measure, because the company cannot reliably forecast special items and
impairments, (gain)/loss on sale of assets and other, net, which are difficult
to predict and estimate. Please note that the unavailable reconciling items
could significantly impact the company's future financial results.
Cautions Concerning Forward-Looking Statements
This news release contains forward-looking statements addressing
expectations, prospects, estimates and other matters that are dependent upon
future events or developments. These matters 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: uncertainties
related to the deferral in hospital capital spending affecting Cardinal
Health's Clinical and Medical Products segment and difficulties in forecasting
the exact duration and potential long-term changes in hospital spending
patterns; uncertainties regarding the planned spin-off of the clinical and
medical products businesses as a new stand-alone entity, including the timing
and terms of any such spin-off and whether such spin-off will be completed,
and uncertainties regarding the impact of the planned spin-off on Cardinal
Health, the new clinical and medical products company and the potential market
for their respective securities; competitive pressures in Cardinal Health's
various lines of business; the loss of one or more key customer or supplier
relationships or changes to the terms of those relationships; uncertainties
relating to timing of generic and branded pharmaceutical introductions and the
frequency or rate of branded pharmaceutical price appreciation or generic
pharmaceutical price deflation; 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 any
regulatory authority or any legal or administrative proceedings; future
actions of regulatory bodies or government authorities relating to Cardinal
Health's manufacturing or sale of products and other costs or claims that
could arise from its manufacturing, compounding or repackaging operations or
from its other services; the costs, difficulties and uncertainties related to
the integration of acquired businesses; uncertainties related to the recent
disruptions in the financial markets, including uncertainties related to the
availability and/or cost of credit and the impact of the financial market
disruptions on Cardinal Health's customers and vendors; and conditions in the
pharmaceutical market and general economic and market conditions. This news
release reflects management's views as of Jan. 8, 2009. Except to the extent
required by applicable law, Cardinal Health undertakes no obligation to update
or revise any forward-looking statement.
