Cardinal Health today reported fourth-quarter fiscal 2011 revenues of $26.8 billion and non-GAAP diluted earnings per share (EPS) from continuing operations of $0.59, up 18 percent. For fiscal 2011, revenues increased 4 percent to $103 billion, and non-GAAP diluted EPS increased 20 percent to $2.67.
Outlook for non-GAAP diluted earnings per share from continuing operations in fiscal 2012 is $3.04 to $3.19 under the company’s new non-GAAP definition, which excludes approximately $0.14 of amortization of acquisition-related intangible assets in fiscal 2012. Fiscal 2011 non-GAAP diluted EPS from continuing operations under this new non-GAAP definition is $2.80.
“Fiscal 2011 was an outstanding year for us. Our organization executed against our key operational and financial objectives and took action on a number of important strategic priorities which will strengthen our long-term positioning,” said George Barrett, chairman and chief executive officer of Cardinal Health. “Our Pharmaceutical Segment finished the year with another excellent quarter, recording 30 percent profit growth over the prior year, which reflects strong growth from strengthened generic programs and solid contribution from the acquisitions we completed earlier in the fiscal year. And although commodity costs and sluggish utilization continued to challenge our Medical Segment, we are taking actions to mitigate their impact. The underlying performance of the business is strong, and the strategic initiatives we implemented this year position us to best serve our customers’ evolving needs.”
Q4 and Fiscal 2011 SUMMARY
Fourth-quarter revenue for the Pharmaceutical Segment, driven by recent acquisitions and sales to existing customers, increased 10 percent to $24.5 billion. Acquisitions contributed 6 percentage points to the quarterly revenue growth. Sales to non-bulk customers increased 20 percent to $13.8 billion. Segment profit for the quarter increased 30 percent to $295 million, reflecting the contribution from strong generics programs, as well as acquisitions, which contributed 12 percentage points to the segment profit growth in the quarter. Solid performance under our branded manufacturer agreements also was a positive driver.
For the full year, revenue for the Pharmaceutical Segment increased 4 percent to $93.7 billion, and segment profit increased 26 percent to $1.3 billion.
Fourth-quarter revenue for the Medical Segment increased 7 percent to $2.3 billion, primarily from sales growth to existing customers and the impact of transitioning the company’s distribution model with CareFusion from a fee-for-service-based arrangement to a traditional branded distribution agreement. Segment profit decreased 24 percent to $78 million, primarily driven by the negative impact of commodity price increases, certain inventory-related charges and investments made to enhance business IT systems, which were partially offset by the impact of increased volume to existing customers and net new business.
For the full year, Medical Segment revenue increased 2 percent to $8.9 billion, and segment profit decreased 14 percent to $370 million.
ADDITIONAL YEAR-END AND RECENT HIGHLIGHTS
- Increased the regular quarterly dividend by 10 percent to $0.215 per share, effective July 2011
- Announced election of David P. King, chairman and chief executive officer, Laboratory Corp. of America Holdings, to Cardinal Health board of directors
- Announced addition of South Carolina Oncology Associates (SCOA), the largest community oncology practice in the state, serving more than 800 patients per day, to the company’s VitalSource GPO, representing another important step in building Cardinal Health Specialty Solutions
- In partnership with Aetna, announced expansion of evidence-based program to improve cancer care treatment and cost efficiency
- Opened The Center for the Advancement of Molecular Imaging, a new, first-of-its-kind collaboration laboratory that will expedite the development of nuclear imaging agents that treat complex diseases
SOURCE Cardinal Health