Cardinal Health Inc (NYSE:CAH), a Fortune 500 healthcare company, announced it will be closing its facility in Halfmoon, New York this fall, jettisoning 37 jobs.
According to a notice filed with the New York Labor Department, Cardinal Health said it will be closing the facility on September 4, 2017. (Source: “WARN Details,” New York State web site, June 6, 2017.)
The only reason the company gave for closing down the facility was “Economic.” The 75,000-square-foot, $5.2-million distribution center was built just five years ago and leaves a big economic gap in the town of 21,000.
Dublin, Ohio-based Cardinal Health provides support and supplies to hospitals, clinical labs, doctors’ offices, and pharmacies across the U.S. and around the world. Cardinal Health ranks among the top 25 on the Fortune 500 and has annual sales of more than $100.0 billion.
“We work continuously to optimize our distribution network and increase efficiencies in our operations,” said corporate spokesperson Courtney Tobin. “As a result of that ongoing analysis, we’ve made the decision to consolidate operations and will be closing facilities in Clifton Park and a few other locations outside New York.”
Tobin declined to say what is done at the Halfmoon facility and said that Cardinal Health is also closing facilities in Milford, Massachusetts and Hazelwood, Missouri.
This is not the first time Cardinal Health has slashed jobs in New York State. Most recently, in 2008, Cardinal Health closed a distribution center in Montgomery, New York, leaving 60 out of work after outsourcing its services.
In fiscal 2016, Cardinal Health reported full-year revenue of $121.5 billion, a 19% increase over the $102.5 billion recorded in fiscal 2015. The company reported full-year earnings from continuing operations of $1.42 billion, or $4.32 per share, an 18% increase over the $1.21 billion, or $3.61 per share in the prior year.
“We finished fiscal 2016 having generated the highest revenues, the largest GAAP and non-GAAP operating earnings, and the greatest operating cash flow in our company’s history. Our teams worked incredibly hard this past year while never losing sight of the ultimate goal – serving patients and their families,” said George Barrett, chairman and CEO of Cardinal Health, Inc.
For fiscal 2017, which ends June 30, 2017, the company reaffirms its full-year non-GAAP earnings per share from continuing operations will be at the bottom of its previous guidance range of $5.35 to $5.50.
“Health company closing in Halfmoon,” taking 37 jobs, Times Union, June 8, 2017.
“WARN Details,” New York State web site, March 3, 2008.
“Cardinal Health Reports Q4 And Fiscal 2016 Results, Provides Fiscal 2017 Outlook,” Cardinal Health Inc, August 2, 2016.