Cardinal Health Q2 earnings dip, but nuclear pharma books higher sales

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Cardinal Health reported an uptick in revenue with a slight downturn in earnings for its fiscal 2009 second quarter, which ended Dec. 31, 2008.

The company said its overall revenue grew 8 percent to $25 billion, and based on generally accepted-accounting principles (GAAP), earnings from continuing operations were $319 million for the second quarter, dwon slightly compared with earnings of $325 million in the same period last year, representing a 2 percent drop.

The Dublin, Ohio-based Cardinal said its healthcare supply chain services revenue increased by 8 percent to $24.1 billion, driven by higher sales to existing pharmaceutical and medical supply chain customers. Sales to bulk pharmaceutical customers increased 15 percent to $11 billion and sales to non-bulk pharmaceutical customers increased 2 percent to $11 billion.

Segment profit grew 6 percent to $333 million, primarily from an increased contribution from generic sales, inflation from branded pharmaceuticals, the increase in total segment sales volume and growth from nuclear pharmacy services.

The revenue for the company’s clinical and medical products increased 7 percent to $1.2 billion, primarily driven by organic growth from the dispensing, infusion and infection prevention businesses and the Enturia acquisition. Segment revenue was dampened by 3 percentage points due to foreign exchange rates during the quarter. Segment profit increased 16 percent to $198 million, driven by revenue growth, the Enturia acquisition and disciplined expense control. Cardinal said its segment profit was “significantly dampened by foreign exchange rates and increased raw material costs.”