Cardinal Health 2011 Annual Report Download - page 5

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
Clearly, scal 2011 was a dening year in our transformative
journey. It was a year of outstanding accomplishments,
exceeding our key company nancial goals, and making
great strides on both operational and strategic levels. We
continued to successfully strengthen our core businesses and
build new capabilities to accelerate growth. And we took
strategic actions in our areas of focus to seize opportunities
and position Cardinal Health for the short-, medium- and
long-term. Namely, we:
• Acquired P4 Healthcare, giving us a dierentiated presence
in oncology and specialty pharmaceutical services;
• Invested in the sales force and customer-facing
tools in our ambulatory care business;
• Acquired Kinray, which dramatically increased
our footprint in independent pharmacy and will
accelerate the growth of our generic franchise; and
• Established a new platform for growth with
the acquisition of Yong Yu in China.
Full-year scal 2011 revenue was up 4 percent to $102.6 billion,
with operating earnings up 16 percent to $1.5 billion. Non-GAAP
diluted earnings per share (EPS) from continuing operations
were $2.67 — an increase of 20 percent.* We improved our gross
margin rate by 22 basis points versus last year, driven in large part
by a rebalancing of our customer and product mix. In addition,
our organization did another excellent job managing working
capital, generating $1.4 billion in cash from operations for the full
year. We returned signicant cash to our shareholders through
share repurchases and a dierentiated dividend payout with a
yield of approximately 2 percent. And we maintained a strong
balance sheet while deploying well over $2 billion in acquisitions
and share repurchases.
Our Pharmaceutical segment revenue increased 4 percent
to $93.7 billion, with segment prot up 26 percent to
$1.3 billion. This segment had an exceptional year, driven
by consistently strong operating results in our generic
programs, contribution from acquisitions, and performance
under our branded manufacturer agreements. We also
continued to solidify our relationships with national retail
and mail order customers and large hospital networks, as
highlighted by a number of contract renewals during the year.
“It was a year of outstanding accomplishments, exceeding our key company nancial
goals, and making great strides on both operational and strategic levels.”
*Se e p age 22 for a re conci liati on o f th e di ere nces be twe en the no n- GA AP
nancial measures and the most directly comparable GAAP nancial measures.