Cardinal unit’s woes felt in 4Q financials

A 2015 acquisition took a big bite out of Cardinal Health’s fourth-quarter financial results.

The Dublin-based drug distributor on Monday reported a loss of $1.2 billion, or $3.76 per share, for the three-month period that ended June 30 because of a $1.4 billion non-cash charge, most of it to write down the value of its Cordis medical-products unit.

Cardinal Health bought Cordis from Johnson & Johnson in 2015 for $1.94 billion. The unit specializes in cardiovascular and endovascular products.

The company already cut its full-year outlook last quarter because of problems with Cordis, a move that sent Cardinal’s shares plummeting to a three-year low. The shares haven’t moved much since.

“The team is moving with a great sense of urgency on our turnaround plan,” CEO Mike Kauffman said.

While the unit is seeing sales growth, it is dealing with inventory and cost challenges, and it will take some time before the company’s actions start to pay off, he said.

“We are confident that Cordis is on the path to profitable growth by the end of fiscal ‘19,” Kauffman said.

If not for the charge, Cardinal Health would have earned $315 million, or $1.01 per share, for the period, ahead of analyst estimates of 93 cents per share. Still, the $315 million profit was down 24 percent from the same period in 2017.

Revenue for the quarter rose 7 percent to $35 billion.

Cardinal shares closed at $50.05, down 25 cents or 0.5 percent. Its 52-week trading range is $48.14 to $75.75.