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Press Releases
| Long-Term Financial Goals FY'08 - FY'10 3-Year Period | One-Year Targets Fiscal Year 2008 | ||
|---|---|---|---|
| Revenue: | + 8 - 10% | In range | |
| Operating Earnings1: | + 10 - 13% | At or above the top end of range | |
| EPS2: | + 12 - 16% | Above range ($3.95 - $4.15 per share3) | |
| Segment | Revenue | Segment Profit | FY08 Profit growth target vs. long-term goal |
| Healthcare Supply Chain Services - Pharmaceutical | + 7 - 10% | + 7 - 10% | Top end of range4 |
| Healthcare Supply Chain Services - Medical | + 4 - 7% | + 6 - 9% | Below range4 |
| Medical Products Manufacturing | + 8 - 12% | + 25 - 30% | Above range |
| Clinical Technologies and Services | + 10 - 15% | + 20 - 25% | In range |
| Return on Equity5: | 15% - 20% | In line with long-term goal | |
| Operating Cash Flow: | > 100% of net earnings | In line with long-term goal | |
| Cash Returned to Shareholders | up to 50% of OCF, via share repurchase and dividends | - Quarterly dividend $0.12 per share; - PTS net proceeds to be used for incremental share repurchase |
|
| Credit Rating: | Strong investment grade | In line | |
| 1 Non-GAAP operating earnings 2 Non-GAAP diluted EPS from continuing operations 3 Includes impact of VIASYS acquisition (up to $0.10 dilutive), continuing operations impact of PTS divestiture (e.g., share repo from proceeds) of approximately $0.40 (>$0.30 net year on year impact vs. FY07), and interest expense impact of SEC/litigation settlements 4 Refined methodology for allocation of corporate costs within HSCS in FY08 positively impacts HSCS-P profit growth by 1.8 percentage points, and negatively impacts HSCS-M profit growth by 7.3 percentage points 5 Non-GAAP return on equity |
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The Company presents certain forward-looking non-GAAP financial measures. Non-GAAP operating earnings is operating earnings excluding special items and impairment charges and other. Non-GAAP diluted EPS from continuing operations is earnings from continuing operations, excluding special items and impairment charges and other, both net of tax, divided by diluted weighted average shares outstanding. Non-GAAP return on equity is annualized current period net earnings plus special items minus special items tax benefit divided by average shareholders' equity. The most directly comparable forward-looking GAAP measures are operating earnings, diluted earnings per share from continuing operations and return on equity. The Company is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures because the Company cannot reliably forecast special items and impairment charges and other, which are difficult to predict and estimate. Please note that the unavailable reconciling items could significantly impact the Company’s future financial results.
Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) and exhibits to those reports, and include (but are not limited to) the following: successful integration of Cardinal Health and VIASYS Healthcare; the ability to achieve synergies from the VIASYS Healthcare transaction; competitive pressures in its various lines of business; the loss of one or more key customer or supplier relationships or changes to the terms of those relationships; changes in the distribution patterns or reimbursement rates for health-care products and/or services; the results, consequences, effects or timing of any inquiry or investigation by any regulatory authority or any legal and administrative proceedings, or settlement discussions with regulatory authorities or plaintiffs in any action against the company; uncertainties related to finalizing the pending settlement of class-action securities litigation, including obtaining court approval of the settlement; with respect to future dividends, the decision by the board of directors to declare such dividends, which is expected to consider Cardinal Health’s surplus, earnings, cash flows, financial condition and prospects at the time any such action is considered; uncertainties relating to the amount of future share repurchases by Cardinal Health, which can be affected by Cardinal Health’s then-current stock price, regulatory restraints on share repurchases, cash flows, financial condition and alternative uses of cash available to Cardinal Health at the time, as well as by the amount of any additional share repurchases authorized by the board of directors; and general economic and market conditions. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement