Cardinal Health reports quarterly profits

Cardinal Health’s latest earnings report suggests its revenue increased over the last quarter.

The products and services provider for the health-care industry states that revenue rose by ten per cent for the final quarter of the 2006 financial year to around $81 billion (42.5 billion pounds) – a value which equates to eight per cent growth.

Total revenue rose by around 12 per cent to $21.7 billion in the quarter leading to the end of June, while earnings from continuing operations rose by 14 per cent to $0.8 billion. The company reports positive earnings comparisons are partly due to a year-on-year rise in tax rates.

R Kerry Clark, president and chief executive of Cardinal Health, commented: “Revenue growth was led by pharmaceutical distribution, margins improved from the first half of the year, operational progress was made in pharmaceutical technologies and services and we had another standout quarter in clinical technologies and services.

“While our fourth-quarter results reflect the good work we have underway to become an integrated operating company, we’re not yet satisfied with our performance and we will continue to drive operational improvements and growth initiatives to further improve in fiscal 2007.”

The report also mentions major events taking place in the fourth quarter of the year, including the sale of Intercare Pharmaceutical Distribution, based in the UK. Alliance Unichem bought the company, which was deemed unsuitable in Cardinal Health’s general strategy for distribution and international business.

Cardinal Health additionally states that it acquired MedMined in the last quarter – a medical analytics firm that is intended extend Cardinal Health’s services. MedMined operates for around 185 hospitals in the US, with services aimed at preventing patients infections developed while staying at hospital.

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