Drug wholesaler Cardinal Health Inc. (CAH.N) on Tuesday reported higher quarterly profits even as revenue fell as patients converted to generic pharmaceuticals from higher-priced brand name pharmaceuticals.
The company reaffirmed its outlook for fiscal 2013, calling for diluted earnings per share from continuing operations, excluding items, of $3.35 to $3.50.
The company, which also announced it raised its dividend, said fiscal first quarter net earnings were $271 million, or 80 per share, up from $237 million or 69 per share a year earlier.
Earnings from continuing operations, excluding one-time items, were 79 cents a share.
Revenue dipped 3 percent to $25.9 billion in the quarter, with revenue from its pharmaceutical segment declining 4 percent to $23.5 billion and revenue from its medical segment rising 1 percent to $2.4 billion.
Cardinal blamed slow growth in its medical segment partly on the slowdown in medical procedures, but said it continues to target double-digit profit in this business in fiscal 2013. (Reporting By Caroline Humer and Debra Sherman; Editing by Alden Bentley and W Simon)