Cardinal Health (CAH) has reported 0.61 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $324 million, or $1.02 a share in the quarter, compared with $326 million, or $0.98 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $427 million, or $1.34 a share compared with $430 million or $1.30 a share, a year ago.
Revenue during the quarter grew 5.42 percent to $33,150 million from $31,445 million in the previous year period. Gross margin for the quarter contracted 28 basis points over the previous year period to 4.83 percent. Total expenses were 98.37 percent of quarterly revenues, up from 98.21 percent for the same period last year. That has resulted in a contraction of 16 basis points in operating margin to 1.63 percent.
Operating income for the quarter was $542 million, compared with $563 million in the previous year period.
However, the adjusted operating income for the quarter stood at $701 million compared to $726 million in the prior year period. At the same time, adjusted operating margin contracted 19 basis points in the quarter to 2.11 percent from 2.31 percent in the last year period.
"Our organization has shown great resilience in the first half of our fiscal 2017. While pricing in the generic pharmaceutical market was a significant headwind for our Pharmaceutical segment profit and our enterprise operating earnings, overall we are seeing greater growth in more lines of business than we’ve seen in some time," said George Barrett, chairman and chief executive officer of Cardinal Health. "Of particular note, we saw strong growth in our Specialty Solutions group, and our Medical segment, where virtually every part of that business grew.
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $5.35 to $5.50 on adjusted basis.
Operating cash flow drops significantlyCardinal Health has generated cash of $658 million from operating activities during the first half, down 53.37 percent or $753 million, when compared with the last year period. The company has spent $237 million cash to meet investing activities during the first six months as against cash outgo of $3,471 million in the last year period.
The company has spent $886 million cash to carry out financing activities during the first six months as against cash outgo of $222 million in the last year period.
Cash and cash equivalents stood at stood at $1,881 million as at Dec. 31, 2016.
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