Summary
Cardinal Health, Inc. (CAH) reported its fiscal year 2010 results, marked by a significant transition following the spin-off of its CareFusion Corporation business in August 2009. The company is now focused on two core segments: Pharmaceutical and Medical. Revenue for the fiscal year reached $98.5 billion, a 3% increase over the prior year. Pharmaceutical segment revenue grew by 2% to $89.8 billion, driven by pharmaceutical price appreciation and volume growth, though this was partially offset by customer losses and pricing changes on renewed contracts. The Medical segment saw a 7% revenue increase to $8.75 billion, primarily due to higher volumes and new products. Net earnings from continuing operations for fiscal 2010 were $587 million, or $1.62 per diluted share, a decrease from $758 million in fiscal 2009, attributed to factors like pricing changes in the Pharmaceutical segment and strategic investments. The company's financial position strengthened, with cash and equivalents increasing to $2.8 billion from $1.2 billion, driven by operating cash flow. Cardinal Health also continued its capital allocation strategy, including dividend payments, share repurchases, and strategic acquisitions, notably the acquisition of Healthcare Solutions Holding, LLC in July 2010.
Financial Highlights
50 data points| Revenue | $98.50B |
| Cost of Revenue | $94.72B |
| Gross Profit | $3.78B |
| SG&A Expenses | $2.40B |
| Operating Income | $1.31B |
| Interest Expense | $113.00M |
| Net Income | $642.00M |
| EPS (Basic) | $1.79 |
| EPS (Diluted) | $1.77 |
| Shares Outstanding (Basic) | 359.00M |
| Shares Outstanding (Diluted) | 361.00M |
Key Highlights
- 1Revenue grew 3% year-over-year to $98.5 billion, driven by both Pharmaceutical and Medical segments.
- 2Pharmaceutical segment revenue increased 2% to $89.8 billion, supported by price appreciation and volume, but impacted by contract renewals and customer attrition.
- 3Medical segment revenue increased 7% to $8.75 billion, boosted by increased volumes and new product introductions.
- 4Net earnings from continuing operations declined to $587 million ($1.62/share) from $758 million ($2.10/share) in the prior year due to various factors including pricing pressures and strategic investments.
- 5Cash and equivalents significantly increased to $2.8 billion from $1.2 billion, indicating improved liquidity.
- 6The company repurchased $250 million of its common stock during the fiscal year and declared an 11% increase in its quarterly dividend.
- 7The spin-off of CareFusion Corporation was completed in August 2009, leaving Cardinal Health with two primary operating segments: Pharmaceutical and Medical.