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Cardinal Health Reports First Quarter Results
Date:10/29/2008

-bulk customers(5) increased 4 percent to $10.6 billion. Segment profit declined 16 percent to $292 million, primarily driven by previously disclosed pharmaceutical contract re-pricings, continued disruption from anti-diversion efforts for pharmaceutical supply chain customers and lower branded price inflation compared to the prior year period.

"In the pharmaceutical supply chain business, we made significant progress towards our key priorities, including rebuilding sales momentum, particularly in the direct store business, growth in our Source Generics program and a resolution with the DEA related to the distribution of controlled drugs," said George Barrett, Cardinal Health vice chairman and CEO of Healthcare Supply Chain Services. "While the positive financial impact of this progress will not be felt immediately, each represents an important milestone in turning the business in a positive direction. Other highlights from the segment include our lab and ambulatory businesses within the medical products supply chain. They performed particularly well for the quarter, and we expect to continue this momentum for the remainder of the fiscal year."

Clinical and Medical Products

Q1 FY09 Q1 FY08 Y/Y

Revenue $1.2 billion $1 billion 12 %

Segment Profit $167 million $145 million 15 %

Revenue for Clinical and Medical Products increased 12 percent to $1.2 billion, driven by continued strength in dispensing, the Enturia acquisition and international sales. Segment profit increased 15 percent to $167 million, driven by the increase in revenue and growth in infection prevention products, including Enturia. Segment profit was partially dampened by a rise in raw material costs.

"Our core infusion and dispensing systems performed well, and our ChloraPrep(R) products from the Enturia acquisition outperformed for the qu
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SOURCE Cardinal Health, Inc.
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