Cardinal Health 2010 Annual Report Download - page 6

Our Medical segment had a very solid year, with revenue up
7 percent to $8.8 billion and segment pro t up 11 percent to
$428 million. During  scal 2010, we also developed our segment
strategy around channel and category management, which we
believe will better align with our customers’ needs and enhance
our ability to apply our core capabilities to help customers be more
cost-e ective. All of this was achieved even as we continued to
make investments to further improve our customers’ experience,
enhance our technology platform and processes, and position the
business for sustainable growth.
In  scal 2010, our hospital supply business grew, and our margin
rates stabilized. We are well positioned in this space with a strong
footprint across all customer channels. And we completely rebuilt
our sourcing model for medical products, expanding our global
sourcing capabilities and leadership in this space.
As we see the delivery of healthcare moving to smaller and more
disease-speci c units of care, we are investing in our ambulatory
business to grow our footprint through an expanded sales
organization and an enhanced ordering system that supports
the unique needs of these customers. Our clinical lab business
continues to be an important part of this segment and delivered
top- and bottom-line growth, helped in part by the irregular  u
season in the  rst half of the  scal year.
Additionally, over the past couple of years, we have been working
hard to improve the performance in our Presource® surgical
kitting business. Through a combination of Lean Six Sigma and
operational excellence initiatives, and our expanded presence
in surgery centers, we returned the unit to positive growth and
successfully reset its trajectory. And our medical distribution
business in Canada had an exceptional year, with double-digit
revenue and pro t growth in  scal 2010.
I am particularly proud of how the company managed its capital
in an extraordinary economic environment. During this past year,
we returned more than $500 million to our shareholders through
dividends and share repurchases, and we invested in the areas of
our business that are critical to support our customers and drive
future growth. We enter  scal 2011 with a very strong balance
sheet, which provides signi cant  nancial  exibility.
We have also made progress in several non- nancial, yet
important, aspects of our company. For instance, our focus on
talent management, leadership development and core capabilities
training is helping to reinvigorate the culture and enhance the
connection between our employees and the positive impact they
can make on our health system. Customers are telling us that the
e orts we are making to strengthen our partnerships reinforce
the value we bring to their businesses. This shift of our “center
of gravity” more decisively out to the customer is re ected in our
loyalty survey scores.
And now more than ever, Cardinal Health is a critical partner in the
communities in which we operate. In  scal 2010, Cardinal Health
donated nearly $20 million in cash and products to improve
the delivery of healthcare and make our communities a better
place to live and work. We are also in the third year of our E3 grant
program—which is the  rst and largest private fund of its kind—
that has helped more than 100 hospitals implement measurable,
evidence-based practices to improve safety and e ciency.
We believe that giving back to the community is a fundamental
responsibility for our company, and we have made charitable
giving and employee volunteerism key underpinnings of our
culture and values.
None of what we accomplished in  scal 2010 would have been
possible without the tremendous commitment of our employees.
I continue to be impressed by their passion for our industry
and their tireless e orts to help our customers improve their
businesses and make the system more cost-e ective.
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