DOW JONES NEWSWIRES
Cardinal Health Inc. (CAH) boosted its quarterly dividend 25%
ahead of its impending spinoff as the company's net income fell 12%
on costs related to the planned spinoff of its clinical and
medical-products businesses.
The announcement comes ahead of Cardinal Health's annual
investor conference, at which the company said it will outline a
goal for future dividend increases to exceed earnings growth after
the spinoff of CareFusion.
The spinoff of the faster-growing unit and a generator of higher
margins than Cardinal Health's much larger, core drug-distribution
business - slated to take place later this year - is expected to
produce savings of up to $130 million in two years.
But hospital-spending delays prompted the medical-goods supplier
to announce in March another round of job cuts and cost-control
measures. CareFusion plans to eliminate 1,300 jobs, or nearly 8% of
its work force.
Cardinal Health shares closed Monday at $35.56 and were inactive
premarket.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com