Cardinal quarterly operating earnings rise

CHICAGO: Cardinal Health Inc posted higher quarterly operating earnings on Thursday as revenue in its pharmaceutical segment rose 10 percent, helped by acquisitions.

Earnings from continuing operations grew to $207.3 million, or 59 cents per share, in the fiscal fourth quarter from $193.8 million, or 54 cents per share, a year earlier.

Analysts on average had expected 58 cents per share, according to Thomson Reuters I/B/E/S,

Net earnings were 58 cents per share, compared with 62 cents a year earlier.

Revenue rose 9 percent to $26.76 billion.

Revenue from its pharmaceutical segment total $24.5 billion, fuelled by acquisitions and good demand for generic drugs. Revenue from its medical segment rose 7 percent to $2.3 billion.

For fiscal 2012, the company forecast earnings per share from continuing operations of $3.04 to $3.19, which excludes about 14 cents of amortization of acquisition-related intangible assets.

Cowen and Co analyst Charles Rhyee said the outlook is just shy of what many analysts were expecting. He said Cardinal's medical business is taking a hit from higher commodity prices, such as resins, cotton, latex and rubber, used to manufacture gloves, gowns, shoe covers and other medical supplies it sells to hospitals.

Cardinal shares closed at $42.19 on the New York Stock Exchange on Wednesday.

Copyright Reuters, 2011