Cardinal Health's cautionary forecast of lower earnings in fiscal 2017 has come to fruition.
For the year (end-June 30), the company reported a record $129.9 billion in revenues, up 7% compared with the $121.5 billion produced in 2016. Net earnings, however, declined from $1.43 million last year to $1.29 million in 2017.
Revenue growth for the year was led by the Pharmaceutical segment, which climbed 7% to reach $116.5 billion, thanks to pharmaceutical distribution customers and the performance of its Specialty Solutions business.
For the fourth quarter, Cardinal had $32.9 billion in revenues, compared with $31.4 billion in the fourth quarter of 2016. Net earnings dropped from $335 million in the fourth quarter of 2016 to $278 million.
Fiscal 2017 presented challenges, but the company took important actions to strengthen its market positioning, grow its scale, add new and long-term drivers of growth, and improve the overall balance of its integrated portfolio, according to Chairman and CEO George Barrett.
