CareFusion issues first earnings report

SAN DIEGO -- CareFusion Corp., the medical device company created Sept. 1 through the spinoff of Cardinal Health's clinical and medical products businesses, Thursday reported increases in revenue, gross margin, net income and EPS for the first quarter of its fiscal 2010 and raised its full-year outlook.

"I am pleased with our strong results during the first quarter while executing the spinoff and establishing CareFusion as a public company," said David Schlotterbeck, chairman and CEO. "While the hospital capital equipment markets remained challenging, we executed well, grew our top and bottom lines, and expanded margins against a very strong first quarter in the prior year."

Schlotterbeck said based on the company's first quarter results, the firm is raising its full-year guidance to $1.35 to $1.45.

CareFusion's reported results are from continuing operations for the quarter ended Sept. 30 compared to the prior year quarter ended Sept. 30, 2008.

Revenue increased 1 percent to $923 million, driven primarily by increased sales of ventilators, infusion pumps and perioperative dispensing systems. Operating earnings rose 30 percent to $117 million, due to product mix and a 1 percent improvement in gross margins. Income from continuing operations increased 83 percent to $55 million, or 25 cents per diluted share.

Excluding one-time items, adjusted operating earnings increased 12 percent to $134 million and adjusted net income increased 71 percent to $87 million, or 39 cents per diluted share.

CareFusion shares closed Thursday on the New York Stock Exchange up $1.42 to $23.99.