("=Cardinal Health 4Q Net Falls 14%; Raises FY EPS View," at
7:38 a.m. EDT, misstated the percentage by which medical-segment
profit fell. The correct version follows:)
DOW JONES NEWSWIRES
Cardinal Health Inc.'s (CAH) fiscal fourth-quarter income
dropped 14% on weaker sales and profit in its medical-products
segment, though earnings matched and revenue beat Wall Street's
expectations.
The company also raised its fiscal-year earnings view and gave a
stronger-than-expected projection for revenue growth.
Cardinal on Aug. 31 will spin off its faster-growing clinical
and medical-products business from its core drug-distribution unit,
which has been hurt by hospital-spending delays. Moody's Investors
Service last month said the post-spinoff company will rely heavily
on distribution, which has slim margins.
For the period ended June 30, the company posted income of
$273.2 million, or 75 cents a share, down from $318 million, or 88
cents a share, a year earlier. The latest results included a 1 cent
charge for classifying the company's British Martindale injectable
manufacturing business as discontinued operations.
Excluding that and other items, per-share earnings fell to 86
cents from 96 cents, in line with estimates.
Revenue rose 10% to $25.2 billion.
Analysts polled by Thomson Reuters expected earnings of 86 cents
and revenue $24.33 billion.
Gross margin fell to 5.4% from 6.4%.
Pharmaceutical-supply earnings rose 8%, helped by a sales rise
of 11% amid growth in generic drugs. Medical-segment revenue fell
12% and profit fell 32% amid deferred hospital capital spending,
foreign exchange-impact and a shipping issue.
Looking forward, the company forecast earnings for the new
fiscal year of $1.90 a share to $2 a share, up from its June view
of $1.87 to $1.91, on "low single-digit" revenue growth. Analysts
expected a revenue drop of 1% to $97.56 billion.
Cardinal Health's shares rose 1.6% to $33.90 in premarket
trading.
-By Mike Barris and Kerry Grace Benn, Dow Jones Newswires;
212-416-2353; kerry.benn@dowjones.com