Exhibit 99.01
[Cardinal Health Logo]
7000 Cardinal Place
Dublin, OH 43017
www.cardinal.com
FOR IMMEDIATE RELEASE
CONTACTS:
Media: Jim Mazzola Investors: Jim Hinrichs
(614) 757-3690 (614) 757-7828
jim.mazzola@cardinal.com jim.hinrichs@cardinal.com
CARDINAL HEALTH DELAYS FILING FISCAL YEAR-END RESULTS,
FORM 8-K DISCLOSES ANTICIPATED RESTATEMENT
GUIDANCE REAFFIRMED FOR FISCAL YEAR 2004, UPDATED FOR FISCAL YEAR 2005
DUBLIN, OHIO, SEPT. 13, 2004--Cardinal Health, Inc. (NYSE: CAH) today submitted
a filing with the Securities and Exchange Commission (SEC) that provides the
company with a 15-day extension to timely file its Form 10-K for fiscal year
2004, which ended June 30.
The company also filed a Form 8-K with the SEC that provides information
regarding the effect on the company's financial statements from an anticipated
restatement. The information regarding the anticipated restatement was provided
as a result of preliminary conclusions from an ongoing internal review by the
Audit Committee of its Board of Directors. Since the Audit Committee's
conclusions are preliminary, there can be no assurance that the anticipated
restatements will not change upon completion of the Audit Committee's internal
review. (These initial conclusions are included in the Form 8-K, which can be
found at the investor relations page of www.cardinal.com).
The anticipated restatements are not expected to change the guidance Cardinal
Health provided on June 30 for its fourth quarter and fiscal year 2004.
In addition, Cardinal Health updated its guidance for fiscal year 2005. Based on
current business conditions, the company expects earnings per share to decline
by 10 percent to 15 percent for the first half of the fiscal year, with a
decline of approximately 25 percent in the first quarter. This decline primarily
reflects the ongoing business model transition in Cardinal Health's
pharmaceutical distribution segment. Margin pressures in this business are
expected to continue as pharmaceutical price increases slow from historic levels
and Cardinal Health transitions to a new fee-based compensation model for the
distribution services it provides pharmaceutical manufacturers. Margin pressure
on medical products and delays in the start-up and associated costs of new
sterile manufacturing projects are also expected to contribute to the first-half
earnings decline.
-more-
CARDINAL HEALTH DELAYS FILING FISCAL YEAR-END RESULTS, FORM 8-K DISCLOSES
ANTICIPATED RESTATEMENT
PAGE 2
Cardinal Health has initiated strategic and operational actions to improve
long-term results, including a restructuring program targeting cost structure
improvements of $125 million in fiscal year 2005, with greater annual savings
over a three-year period. Cardinal Health maintains an earnings-per-share growth
goal of at least 10 percent for fiscal year 2005. Achievement of this goal,
however, is dependent on operational progress and improvements, most notably in
its pharmaceutical distribution business.
As previously reported, in October 2003, the SEC initiated an informal inquiry
regarding Cardinal Health seeking historical financial and related information.
In May, the company was notified that the SEC had converted the informal inquiry
into a formal investigation. In June, as part of the SEC's formal investigation,
Cardinal Health 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 Revenues" or "Bulk Deliveries to Customer Warehouses and
Other." In addition, the company learned that the U.S. Attorney for the Southern
District of New York had also commenced an inquiry that the company understands
relates to the revenue classification issue. Cardinal Health continues to
respond to the investigations by providing all information required.
An investor meeting scheduled for Sept. 15 has been postponed. The company plans
to reschedule the meeting on a date following the filing of its Form 10-K.
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 55,000 people on six 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.
####
- --------------------------
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 results, effects or timing of any
inquiry or investigation by any regulatory authority or any legal and
administrative proceedings, and general economic and market conditions. Cardinal
Health undertakes no obligation to update or revise any forward-looking
statement.