Exhibit 99.01
[Cardinal Health Logo]
7000 Cardinal Place
Dublin, OH 43017
www.cardinal.com
CONTACTS:
Media: Jim Mazzola Investors: Jim Hinrichs
(614) 757-3690 (614) 757-7828
jim.mazzola@cardinal.com jim.hinrichs@cardinal.com
NOTE: CARDINAL HEALTH HAS SCHEDULED A CONFERENCE CALL FOR INVESTORS TODAY AT 6
P.M. EASTERN DAYLIGHT TIME TO DISCUSS ITS UPDATED OUTLOOK. TO ACCESS THIS
DISCUSSION VIA THE INTERNET, GO TO THE INVESTOR RELATIONS PAGE AT
WWW.CARDINAL.COM. THE COMPANY HAS ALSO ESTABLISHED A TELEPHONE CALL-IN LINE AT
(706) 634-5100.
CARDINAL HEALTH UPDATES EARNINGS OUTLOOK
ANNOUNCES ADDITIONAL GOVERNMENT INQUIRY
DUBLIN, OHIO, JUNE 30, 2004 -- Cardinal Health, Inc. (NYSE: CAH), the leading
provider of products and services supporting the health care industry, today
announced earnings per share for its fiscal year 2004 are expected to increase
approximately 11 percent, which is below prior guidance of mid-teens or better
growth. Operating cash flow for the fourth quarter was substantially above
expectations and for the full year is now expected to exceed $2 billion, well
ahead of the company's $1.3 billion prior guidance.
Earnings per share expectations for the company's fourth quarter and full fiscal
year ended today are summarized in the following table.
EARNINGS PER SHARE EXPECTATIONS FROM CONTINUING OPERATIONS
Q4 RANGE FISCAL YEAR 2004 RANGE
-------- ----------------------
GAAP Earnings Per Share $0.88 - $0.91 $3.46 - $3.49
Special Items $(0.05) - $(0.04) $(0.07) - $(0.06)
Earnings Per Share,
Excluding Special Items $0.93 - $0.95 $3.53 - $3.55
-more-
Cardinal Health Updates Earnings Outlook
Page 2
The company also affirmed its long-term goal to increase earnings per share at a
mid-teens or better rate. However, for the upcoming fiscal year 2005, growth is
expected to be lower, at a rate of at least 10 percent, with continued strong
cash flow and return on equity. Growth expectations for fiscal 2005 exclude
special items, which the company believes can not be reasonably projected at
this time.
Separately, the company announced that on June 21, as part of the Securities and
Exchange Commission's (SEC) formal investigation disclosed by the company on May
14, it received an SEC subpoena that included a request for the production of
documents relating to revenue classification, and the methods used for such
classification, in the company's pharmaceutical distribution business as either
operating revenue or revenues from bulk deliveries to customer warehouses. In
addition, Cardinal Health has learned that the U.S. Attorney's Office for the
Southern District of New York has commenced an inquiry that the company
understands relates to this same subject. This subject is also being reviewed as
part of the ongoing inquiry by Cardinal Health's Audit Committee and its
independent counsel. As previously disclosed on May 16, the company understands
the SEC and Audit Committee inquiries are not limited to this subject. Cardinal
Health continues to respond to these inquiries and provide all information
required.
Cardinal Health has scheduled a conference call for investors today at 6 p.m.
Eastern Daylight Time (EDT) to discuss its updated outlook. To access this
discussion via the Internet, go to the Investor Relations page at
www.cardinal.com. The company has also established a telephone call-in line at
(706) 634-5100. An audio replay of the conference call will be available until
11 p.m. EDT on July 2 by dialing (706) 645-9291, passcode 8506523. A transcript
and replay of the Webcast will be available at the Investor Relations page on
www.cardinal.com.
ABOUT CARDINAL HEALTH
CARDINAL HEALTH, INC. (www.cardinal.com) is the leading provider of products and
services supporting the health care industry. Cardinal Health develops,
manufactures, packages and markets products for patient care; develops
drug-delivery technologies; distributes pharmaceuticals and medical, surgical
and laboratory supplies; and offers consulting and other services that improve
quality and efficiency in health care. Headquartered in Dublin, Ohio, Cardinal
Health employs more than 50,000 people on five continents and produces annual
revenues of more than $50 billion. Cardinal Health is ranked No.17 on the
current Fortune 500 list and named one of the best U.S. companies by Forbes
magazine for 2004.
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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. 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 8-K and
Form 10-Q reports (including all amendments to those reports) and exhibits to
those reports, and include (but are not limited to) the costs, difficulties, and
uncertainties related to the integration of acquired businesses, 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 costs and other effects of
governmental regulation and legal and administrative investigations and
proceedings, and general economic and market conditions. Cardinal Health
undertakes no obligation to update or revise any forward-looking statement.