April 30, 2009 / 3:42 PM / 10 years ago

UPDATE 2-Cardinal Health profit falls, shares down

* Q3 non-GAAP EPS 97 cents

* Q3 revenue rises 9 pct to $24.94 bln

* Sees 2009 non-GAAP EPS at the low end of prior view

* Shares down 1.6 percent (Recasts, adds conference call, analyst comment, CHICAGO dateline, stock movement)

CHICAGO, April 30 (Reuters) - U.S. drug wholesaler Cardinal Health Inc (CAH.N) posted a 12 percent decrease in quarterly earnings, hurt by a continued pullback in hospital capital spending and negative foreign currency translations.

Fiscal third-quarter earnings were also hit by an additional reserve associated with costs to remediate certain models of the company’s recalled Alaris infusion pumps, a sales impact from a hold on shipping certain Alaris products.

Cardinal, whose shares dipped 56 cents to $33.93 in morning New York Stock Exchange dealings, now expects fiscal 2009 earnings to come in at the low end of its previous forecast range of $3.50 to $3.60 a share.

In the latest quarter, strength in the company’s Hospital Supply Chain Services segment was not enough to offset weakness in its Clinical and Medical Products business, which was undermined by tighter hospital capital spending budgets.

Quarterly net income fell to $312.9 million, or 87 cents a share, in its quarter ended March 31, from $356.0 million a year ago. Excluding exceptional items, the company earned 97 cents a share in the quarter.

Revenue rose 9 percent to $24.94 billion.

“There was nothing really new and that’s a good thing,” said Deutsche Bank analyst Ross Muken.

Analysts on average expected earnings of 95 cents a share, excluding special items, on revenue of $24.06 billion.

Revenue for clinical and medical products segment fell 6 percent to $1.1 billion, while revenue from healthcare supply chain services rose 9 percent to $24 billion.

Chairman and Chief Executive Kerry Clark told a conference call that there were signs in the most recent quarter that negative trends in capital equipment orders were moderating.

For the alerts, double-click [ID:nWNAB0948] (Reporting by Debra Sherman in Chicago and Anand Basu in Bangalore; Editing by Anthony Kurian, Dave Zimmerman)

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