By Melodie Warner 
 

Cardinal Health Inc. (CAH) swung to a fiscal fourth-quarter loss as the drug wholesaler booked a large write-down on its nuclear-pharmacy-services division, though adjusted earnings climbed more than expected.

The company said a decline in demand for certain products, particularly low-energy diagnostics, led to the write-down of $799 million in goodwill.

Cardinal lost its contract with pharmacy-benefits manager Express Scripts Holding Co. (ESRX) last year to rival AmerisourceBergen Corp. (ABC). Cardinal was dealt another blow in March when Walgreen Co. (WAG) and European drug giant Alliance Boots GmbH agreed to get their branded and generic pharmaceutical products from AmerisourceBergen. That distribution pact replaces Cardinal's contract with Walgreen that expires this month.

Meanwhile, Cardinal renewed its distribution agreement with CVS Caremark Corp. (CVS) in April, lifting a shadow for the drug wholesaler, and also acquired the medical-supplies provider AssuraMed for $2.07 billion in March as it looks to diversify its offerings.

For the quarter ended June 30, Cardinal Health reported a loss of $586 million, or $1.72 a share, compared with a profit of $236 million, or 68 cents a share, a year earlier. Excluding items such as asset impairment charge of $799 million related to the nuclear-pharmacy-services division, restructuring and acquisition charges, adjusted earnings from continuing operations rose to 79 cents from 73 cents. Revenue declined 5% to $25.42 billion.

Analysts polled by Thomson Reuters had most recently forecast per-share earnings of 77 cents on revenue of $24.56 billion.

Gross margin improved to 4.9% from 4.2%.

The pharmaceutical segment's revenue declined 6.2% and its earnings were up 11%.

The medical segment, which provides medical and surgical products and services to hospitals, doctors' offices and other health-care providers, posted an 11% revenue increase and the segment's earnings climbed 31%.

Cardinal also estimated fiscal 2014 earnings from continuing operations at $3.45 to $3.60 a share, while analysts surveyed by Thomson Reuters expect $3.55 a share.

Shares closed Wednesday at $50.09 and were inactive premarket. The stock has climbed 22% so far this year.

Write to Melodie Warner at melodie.warner@wsj.com

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