Cardinal Health spinning off segments, CEO retires

The spin-off, which is scheduled for completion by the middle of 2009, will better align management and employees as well as allocate capital, Cardinal Health said. The company will be based in San Diego and offer products for infusion, medication and surgical procedures.

Schlotterbeck, 61, joined Cardinal Health in 2004, after serving as president and CEO of Alaris Medical Systems.

Dwight Winstead, 59, will serve as chief operating officer, and an external search has been launched to select a chief financial officer for the new company.

Separately, Cardinal Health said Chairman and Chief Executive R. Kerry Clark, 56, will lead the spin-off and then retire.

Clark will be replaced by George S. Barrett, 53, who joined Cardinal Health in January. Barrett most recently served as president and CEO of North America for Teva Pharmaceuticals.

Cardinal Health backed its current fiscal 2009 outlook for revenue growth of 6 percent to 7 percent and earnings per share from continuing operations between $3.80 and $3.95.

Profit per share in the first quarter is expected around 70 cents, with profit "returning to more normal levels in the second quarter and overall results stronger in the second half of the year."

Analysts polled by Thomson Reuters expect 70 cents in earnings per share for the first quarter and revenue of $22.86 billion and profit of $3.85 for the year.

The company reports first-quarter results on Oct. 29.