News Column

Cardinal Health Reports Fiscal 2013 2Q Results

Feb 5 2013

Cardinal Health today reported fiscal year 2013 second-quarter revenue of $25.2 billion and a 15 percent increase in non-GAAP diluted earnings per share (EPS) from continuing operations to $0.93.

In addition, the company tightened its fiscal 2013 outlook for non-GAAP diluted EPS from continuing operations to $3.42 to $3.50, which represents the top half of the prior guidance range.

"We've now completed a strong first half to our fiscal 2013 with a good second-quarter performance. While continued brand-to-generic conversions and the previously announced movement of the Express Scripts contract drove a revenue decline in the Pharmaceutical segment, excellent performance from our generic programs and new customer wins fueled profit gains," said George Barrett, chairman and chief executive officer of Cardinal Health. "And, despite continued procedural softness in the industry, our Medical segment reported double-digit growth this quarter. With our performance in the first six months of fiscal 2013, we are now guiding to the top half of our prior non-GAAP EPS range."

Q2 FY13 SUMMARY

Q2 FY13 Q2 FY12 Y/Y

------- ------- ---

Revenue $25.2 billion $27.1 billion (7%)

------- ------------- ------------- ---

Operating Earnings $506 million $449 million 13%

------------------ ------------ ------------ ---

Non-GAAP Operating Earnings

$525 million $475 million 11%

--- ------------ ------------ ---

Earnings from Continuing

Operations

$303 million $264 million 15%

--- ------------ ------------ ---

Non-GAAP Earnings from

Continuing Operations

$317 million $281 million 13%

--- ------------ ------------ ---

Diluted EPS from Continuing

Operations

$0.88 $0.76 16%

--- ----- ----- ---

Non-GAAP Diluted EPS from

Continuing Operations

$0.93 $0.81 15%

--- ----- ----- ---

SEGMENT RESULTS

Pharmaceutical segment

Revenue for the Pharmaceutical segment decreased 8 percent to $22.7 billion due to the previously announced non-renewal of the Express Scripts contract as well as expected conversions from branded pharmaceuticals to lower-priced generics. The decline was partially offset by revenues from new pharmaceutical distribution customers. Segment profit increased 12 percent to $441 million, largely from overall strong performance from generics programs and benefits of customer and product mix within pharmaceutical distribution, partially offset by the impact of continued market softness in our nuclear business.

Q2 FY13 Q2 FY12 Y/Y

------- ------- ---

Revenue $22.7 billion $24.7 billion (8%)

------- ------------- ------------- ---

Segment Profit $441 million $394 million 12%

-------------- ------------ ------------ ---

Medical Segment

Revenue for the Medical segment increased 3 percent to $2.5 billion, reflecting the benefits of last year's acquisition of FutureMed and one additional sales day year-on-year. Excluding these drivers, year-on-year revenue growth was flat, reflecting continued softness in key U.S. markets, particularly as it relates to procedural volume. Segment profit increased 11 percent to $94 million driven by the favorable impact of commodities, acquisitions and preferred product mix. The increase was partially offset by customer mix and continued volume softness.

The overall profit impact of our Medical Business Transformation for the quarter was slightly negative, including year-over-year incremental depreciation and program expenses, realized benefits, and a $5 million favorable out-of-period adjustment as part of continued cleanup from the conversion to the new platform.

Q2 FY13 Q2 FY12 Y/Y

------- ------- ---

Revenue $2.5 billion $2.4 billion 3%

------- ------------ ------------ ---

Segment Profit $94 million $85 million 11%

-------------- ----------- ----------- ---



Source: Copyright PRNewswire 2013


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters