Cardinal Health CEO Steps Down

Cardinal Health Inc.

CAH 5.16%

Chief Executive Officer

Mike Kaufmann

is stepping down from the healthcare products distributor as it struggles with the impact of inflation and supply-chain constraints on its medical supplies business.

Mr. Kaufmann will be succeeded on Sept. 1 by Chief Financial Officer

Jason Hollar,

who will also join

Cardinal’s

board of directors, the company said on Thursday.

Cardinal reported $47.1 billion in total revenue in its fiscal fourth quarter, up 10.6% from $42.6 billion in the year-earlier quarter. Earnings per share were $0.50, up 25% from $0.40 in the same period last year.

Revenue from Cardinal’s pharmaceuticals-distribution business, its largest unit by sales, rose about 13% in the quarter to $43.3 billion, and segment profit increased 26% to $451 million.

But the company’s medical supplies unit, which sells products such as sterile gloves to hospitals and doctors’ offices, weighed down its overall results. Cardinal’s medical unit sales fell 11% to $3.8 billion, and lost $16 million.

“Medical segment performance was significantly impacted by inflation and supply chain constraints,” said Mr. Kaufmann.

Mr. Kaufmann has worked for more than 30 years at Cardinal in roles including operations, sales and finance. As CEO, Mr. Kaufmann steered the company through a wave of civil litigation related to the company’s distribution of opioid drugs.

In February, Cardinal along with fellow distributors

AmerisourceBergen Corp.

and

McKesson Corp.

agreed to pay a total of $19.5 billion to 46 states over 18 years to resolve lawsuits alleging that the companies flooded areas of the U.S. with opioid pills.

Mr. Hollar has served as Cardinal’s CFO since May 2020, and was previously CFO of

Tenneco Inc.,

a global automotive products and services company.

Write to Joseph Walker at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Education News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechiLive.in is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.