McKesson 2008 Annual Report Download - page 7

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Summary and Outlook
The fundamentals of our business are stronger than ever. Across the
full range of our operations, we have not seen the impact of a slowing
economy or tightening credit markets. We had strong top-line growth in
both Distribution Solutions and Technology Solutions in fi scal year 2008,
and while revenue growth rates have slowed, we maintain a positive
outlook for fi scal year 2009.
Celebrating our 175th anniversary is an occasion for all of us at McKesson
to refl ect on our history of achievement in healthcare. We are very proud
of the role we have played in the advancement of this important industry.
As we move into fi scal year 2009 and the next chapter in our legacy, our
business has tremendous momentum.
We’re very pleased with our progress, but we’re not stopping here. Our
goal is to continually exceed the expectations of our customers, employees
and stockholders. Our fi nancial stability, unparalleled product mix and
enviable customer base position McKesson for continued leadership and
success in the years ahead. We believe the best is yet to come — for
McKesson, our customers and the healthcare system as a whole.
I would like to thank our employees for their hard work and commitment,
our customers for their loyalty and partnership, our suppliers for their
collaborative approach and dedication to our mutual success, and our
stockholders for their continued support.
solutions will help our customers make
healthcare safer and more cost-effective.
We are not afraid to take a hard look at
our existing businesses. Since 2006, we
have divested non-strategic or underper-
forming businesses such as the acute care
division of our Medical-Surgical business,
which we sold in fi scal year 2007, as well
as our pharmacy outsourcing business,
McKesson Medication Management,
the bulk of which we divested in April
2008. We regularly review our portfolio
of assets to determine the optimal mix for
future value creation.
Our portfolio approach to capital deploy-
ment has included an aggressive share
repurchase program. Over the past
three years, we have repurchased $3.7
billion of outstanding McKesson com-
mon stock. Based on our positive out-
look for the business, in April 2008
the Board of Directors authorized an
additional $1 billion share repurchase
program, bringing the total authoriza-
tion then available to $1.3 billion. We
are also committed to returning capital
to stockholders, and earlier this year, the
Board approved a policy to double our
quarterly dividend from 6 cents to 12
cents per share.
John H. Hammergren
Chairman and Chief Executive Offi cer