Cardinal Health Inc. (CAH) announced that its spin-off subsidiary, CareFusion Corp., will be included in the S&P 500 after the close of trading on Aug 31. CareFusion replaces The Manitowoc Co. Inc. (MTW) in the index and will be added to the S&P 500 GICS (Global Industry Classification Standard) Health Care Equipment Sub-Industry index.
 
CareFusion is being formed by spinning off the Clinical and Medical Products business of Cardinal Health. The spin-off is expected to be completed on Aug 31. CareFusion Corp. is expected to generate earnings per share of $1.10 to $1.20 on a standalone basis.
 
The S&P 500 represents prices of the top 500 large-cap companies traded in the U.S. stock exchanges. It is one of the world’s most prestigious indices. Hundreds of billions of US dollars are invested in the S&P 500 index by different mutual funds, pension funds and exchange traded funds.
 
Cardinal Health is one of the largest global healthcare companies that helps pharmacies, hospitals and ambulatory care sites to focus on low-cost patient care. The company is also a leading manufacturer of medical and surgical products.
 
Cardinal Health recently released its fourth quarter and full fiscal year 2009 results. For the quarter, earnings per share were 86 cents, compared to 96 cents in the year-ago quarter but in line with the Zacks Consensus Estimate. For the year, earnings per share were $3.48, lower than last year’s earnings per share of $3.75 and the Zacks Consensus Estimate of $3.50.
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