Cardinal Health reports $91 billion in fiscal 2014 revenue

DUBLIN, Ohio — Cardinal Health on Monday reported fourth-quarter fiscal 2014 revenue of $23 billion, down 9.8%. Fourth-quarter revenue was up 12% excluding the impact of the Walgreens contract expiration, the wholesaler reported. 
 
Fiscal year 2014 revenue was $91.1 billion, down 9.9% from fiscal year 2013 revenue of $101.1 billion. 
 
"I am extremely proud of the progress we made in a year of transition for both Cardinal Health and the health care system," stated George Barrett, chairman and CEO Cardinal Health. "We made significant progress on our strategic priorities: launching the largest generic purchasing entity in the U.S. through our joint venture with CVS Caremark, expanding our position and capabilities in specialty, substantially increasing our line of consumable medical products, taking significant steps to enhance our program on physician preference items in both cardiovascular and orthopedics, enlarging our footprint in the home, and showing continued strong growth in China."
 
In fiscal year 2014, the company generated $2.5 billion in operating cash flow and returned $1.1 billion to shareholders through dividends and share buybacks.
 
Barrett continued, "We enter fiscal year 2015 well-positioned to address the needs of a rapidly changing health care system. Our fiscal year 2015 outlook for non-GAAP diluted EPS from continuing operations is $4.10 to $4.30."
 
Fourth-quarter revenue for the pharmaceutical segment decreased 12% to $20.1 billion, and segment profit decreased 5% to $377 million. The decrease in both segment revenue and profit was due to the continuing impact of the expiration of the Walgreens contract.   
 
Excluding the impact of Walgreens, fourth-quarter revenue for the pharmaceutical segment grew 13%, driven by organic sales growth, growth in the company's specialty solutions division and China. The impact of the Walgreens contract expiration on segment profit was partially offset by strong performance under generic programs.  
 
For the full year, revenue for the pharmaceutical segment decreased 12% to $80.1 billion, and segment profit increased 1% to $1.7 billion.
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