UPDATE 3-Cardinal sees weak fiscal '09 profit, shares slide

(Adds conference call, analyst comment, byline, updates stock)

By Debra Sherman

CHICAGO, Aug 7 (Reuters) - Cardinal Health Inc (CAH.N: Quote, Profile, Research), one of the top U.S. drug wholesalers, posted a higher-than-expected quarterly profit on Thursday but issued an earnings forecast for its new fiscal year that was below Wall Street's estimates, driving its shares lower.

The Dublin, Ohio company, which operates in two business segments, also said it was exploring a spin-off of its high-margin clinical and medical products businesses, which generated about 6 percent of its 2008 revenue.

Management said the current quarter was off to a weak start and forecast earnings per share, excluding items, of about 70 cents, well below the consensus of 94 cents, amid continued weakness in its drug distribution business.

Management said it expected improvement during the second half of fiscal 2009, but still forecast earnings from continuing operations well below Wall Street's estimates.

It said it expected earnings of $3.80 to $3.95 per share for fiscal 2009 on revenue growth of 6 percent to 7 percent. Analysts, on average, were looking for $4.26 per share, according to Reuters Estimates.

"We know our 2009 guidance may come as a disappointment to may of you," Cardinal Chairman and Chief Executive R. Kerry Clark told a conference call.

The company also said it will likely "significantly downsize" its share buyback program in fiscal 2009 as it plans to invest up to $100 million in research and development and in information technology.