Cardinal income falls 17 percent in Q1

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Cardinal Health, a provider of healthcare products and services, has reported that its 2009 first quarter net income fell 17 percent, despite revenue increases, as a result of write-downs and restructuring charges.

For the quarter, which ended Sept. 30, Cardinal reported net income of $249.1, down from $301.8 million a year earlier.

The Dublin, Ohio-based company reported an 11 percent increase in revenue to $24 billion, compared to year-ago results for the 2008 first quarter of $22 billion. Cardinal attributed its gains to “strong sales in the healthcare supply chain services segment and continued growth within clinical and medical products.”

Cardinal remains “well positioned” with access to capital, according to Chairman and CEO Kerry Clark. While the medical supply company has not seen “any definitive” customer credit issues, he said that the company is seeing hospitals delay some purchase decisions that will affect the clinical and medical products segment for current quarter.

In the pharmaceutical supply chain services segment—Cardinal's biggest division—profits fell 16 percent in the 2009 first fiscal quarter, despite revenue climbing 11 percent as contract re-pricings and anti-diversion efforts for controlled substances hurt results.

In September, the company spun-off of its clinical and medical products businesses as a stand-alone medical technology company to sharpen its focus. The shift is projected be completed by mid-2009.