Cardinal Health plans restructuring, cuts 600 jobs

The company will record a $63 million restructuring charge, mainly in its fiscal year which began July 1. Of the 600 jobs to be eliminated, about 160 positions are open and won't be filled.

Cardinal Health's pharmaceutical and medical product distribution centers and pharmacies will form the health care supply chain services segment, led by Vice Chairman George S. Barrett. This division has annual revenue of more than $80 billion, serving customers in North America with prescription medicine and medical products.

The company's infusion, medication dispensing, respiratory care and infection prevention products will be grouped in the clinical and medical products segment under Vice Chairman David L. Schlotterbeck. This division, with annual sales of about $5 billion, serves hospitals and other primary care facilities.

Cardinal Health also said it will review its pharmacy services, Tecomet orthopedic implants and instruments, Medsystems airway management products and Medicine Shoppe International businesses to evaluate where they fit in the company's new structure.

Cardinal Health also reaffirmed its outlook for fiscal 2008 operating profit midway between $3.75 and $3.85 per share, excluding one-time charges and gains. On average, analysts surveyed by Thomson Financial expect adjusted profit of $3.78 per share.

The company is slated to report fiscal fourth-quarter and full-year results on Aug. 7.