CareFusion Reports First Half Fiscal 2013 Results

              CareFusion Reports First Half Fiscal 2013 Results

- Second quarter revenue increased 2 percent to $909 million, driven by
strength in the company's Procedural Solutions segment.

- Second quarter GAAP diluted earnings per share (EPS) from continuing
operations reached $0.48 and increased 10 percent on an adjusted basis to
$0.54.

- Company reaffirmed fiscal 2013 revenue and EPS guidance.

PR Newswire

SAN DIEGO, Feb. 7, 2013

SAN DIEGO, Feb. 7, 2013 /PRNewswire/ --CareFusion Corp. (NYSE: CFN), a
leading, global medical technology company, today reported results for the
three and six months ended Dec. 31, 2012.

"Our consolidated first and second quarter financial results were led by
strong performance across the Procedural Solutions segment, where each
business is delivering positive gains and executing well," said Kieran T.
Gallahue, chairman and CEO. "In Medical Systems, the first half shaped up
about as we expected, with Infusion Systems performing slightly ahead of our
plans.

"At the same time, we continued to make progress against our strategic goals,
expanding operating margins while investing in innovation, new markets and
other priorities that will help us accelerate our growth over the long-term."


Second Quarter Results

The company reported revenue for the second quarter of fiscal 2013 of $909
million, compared to $890 million in the second quarter of fiscal 2012, an
increase of 2 percent on a reported and constant currency basis.

Operating income was$171 million, an increase of 20 percent compared to$143
millionin the prior year period. Excluding nonrecurring items, adjusted
operating income for the second quarter grew 12 percent to $189 million, or
20.8 percent of revenue, driven primarily by gross margin expansion.

Operating expenses totaled$300 millionin the second quarter. Excluding
amortization of acquired intangibles and nonrecurring items, adjusted
operating expenses were$282 million, an increase of 1 percent over the prior
year period. During the quarter, the company continued to increase investments
in research and development, which were primarily funded by decreases in
corporate overhead and selling, general and administrative (SG&A) expenses.

The company reported income from continuing operations in the second quarter
of$108 million, or$0.48per diluted share. Adjusted income from continuing
operations increased 9 percent from the prior year period to$121 million,
or$0.54per diluted share. The adjusted tax rate was 29.6 percent for the
second quarter.

Medical Systems

Second quarter revenue for the Medical Systems business segment of $602
million on a reported and constant currency basis was nearly even with the
prior year period. Results were driven primarily by an expected decrease in
the Infusion Systems business. Despite the year-over-year decline, Infusion
Systems performed ahead of company expectations.

Segment profit increased 7 percent from the prior year period to $123 million,
as gross margin improvements and SG&A leverage helped to fund increased
investments in R&D. Adjusted segment profit was $134 million, an increase of 2
percent from the prior year period.

Procedural Solutions

Second quarter revenue for the Procedural Solutions business segment increased
7 percent from the prior year period to $307 million on a reported and
constant currency basis. The increase was driven by strong performance across
all three business units, with continuing growth in Infection Prevention,
Medical Specialties delivering its highest revenue growth in more than two
years and Specialty Disposables benefitting from an early start to the flu
season.

This top-line strength carried through to the bottom line, with segment profit
increasing 71 percent from the prior year period to $48 million. Adjusted
segment profit was $55 million, a 45 percent increase driven by strength in
the company's clinically differentiated portfolio and disciplined expense
management efforts.

Six-Month Results

For the first six months of fiscal 2013, revenue increased 2 percent from the
prior year period to $1.75 billion. Operating income increased to $314 million
from $258 million, up 22 percent. Income from continuing operations was $195
million, or $0.87 per diluted share. Adjusted income from continuing
operations increased 8 percent to $220 million, or $0.98 per diluted share.

Operating expenses in the first six months totaled $593 million, or $558
million on an adjusted basis. 

Segment results for the six months ended Dec. 31, 2012 and 2011 are as
follows:

Medical Systems         1H FY13        1H FY12        Y/Y
Revenue                 $1,153 million $1,150 million 0%
Segment Profit          $225 million   $197 million   14%
Adjusted Segment Profit $246 million   $233 million   6%



Procedural Solutions    1H FY13      1H FY12      Y/Y
Revenue                 $593 million $568 million 4%
Segment Profit          $89 million  $61 million  46%
Adjusted Segment Profit $103 million $80 million  29%

Recent Highlights

Additional second quarter and recent highlights included:

  oCompleting the acquisition of Intermed Equipamento Medico Hospitalar Ltda,
    a privately held, leading respiratory technologies company based in Sao
    Paulo, Brazil. The acquisition advances CareFusion's strategy to expand
    outside of the U.S. through investments that build scale and local
    capabilities in high-value markets.
  oIntroducing the Alaris^®Infusion Viewer for Pharmacy Logistics,^a
    web-based dashboard capable of showing near real-time status of all
    infusions across a hospital or health system that is using the Alaris®
    System with the Alaris Pump and/or Alaris Syringe Modules.The dashboard
    helps hospital pharmacies improve clinician efficiency by displaying if
    infusions are currently infusing, stopped or completed and by showing
    which pumps have a current Guardrails^®soft alert violation, streamlining
    alert reviews.
  oLaunching the Pyxis^®Anesthesia ES system, the newest offering available
    on the Pyxis ES platform, which features improved patient-centric
    workflows to help decrease manual documentation and offers enhanced
    security and capabilities that can be leveraged in a single hospital or
    across an entire health system.
  oLaunching StartClean, a new preoperative cleansing program that features a
    unique e-reminder system to drive patient compliance.
  oFiling the company's annual report on Form 10-K for fiscal 2012,
    reflecting the revisions the company made as a result of modifying its
    accounting for sales-type leases in its Pyxis® medication and supply
    dispensing product lines. CareFusion expects to file its quarterly reports
    on Form 10-Q for the first and second quarters of fiscal 2013 by Feb. 11,
    bringing the company current in its disclosures.

Fiscal 2013 Outlook

CareFusion continues to expect full-year consolidated revenue to grow 1 to 3
percent on a constant currency basis compared to fiscal 2012 revenue of $3.6
billion. Adjusted diluted EPS from continuing operations are expected to be in
the range of $2.11 to $2.21. Beginning in the first quarter of fiscal 2013,
CareFusion changed the manner in which the company reports adjusted financial
results, including adjusted diluted EPS guidance, to exclude
acquisition-related amortization.

The guidance is based on an assumed diluted weighted average outstanding share
count of approximately 221 million, which includes the impact of expected
share repurchases during fiscal 2013.

Conference call

CareFusion will host a conference call today at 2 p.m. PST (5 p.m. EST) to
discuss financial results for the first half of fiscal 2013. To access the
call, visit the Investors page at www.carefusion.com/. Log on at least 15
minutes before the call begins to register and download or install any
necessary audio software.

Investors and other interested parties may also access the call by dialing
(800) 706-7748 within the U.S. or (617) 614-3473 from outside the U.S., and
using the access code 86859607. A replay of the conference call will be
available from 4 p.m. PST (7 p.m. EST) on Feb. 7 through 8:59 p.m. PST on
Feb.14 and can be accessed by dialing (888) 286-8010 in the U.S. or (617)
801-6888 from outside the U.S. and using the access code 52148625.

About CareFusion Corporation

CareFusion (NYSE: CFN) is a global corporation serving the health care
industry with products and services that help hospitals measurably improve the
safety and quality of care. The company develops market-leading technologies
including Alaris® infusion pumps, Pyxis® automated dispensing and patient
identification systems, AVEA®, AirLife™ and LTV® series ventilation and
respiratory products, ChloraPrep® products, MedMined® services for data mining
surveillance, V. Mueller® surgical instruments, and an extensive line of
products that support interventional medicine. CareFusion employs more than
15,000 people across its global operations. More information may be found at
www.carefusion.com.

Use of Non-GAAP Financial Measures by CareFusion Corporation

This CareFusion news release and the information contained herein present
non-GAAP financial measures that exclude certain amounts, as follows:
"adjusted operating expenses," "adjusted operating income," and "adjusted
segment profit," which exclude amortization of acquired intangibles, as well
as nonrecurring items related to the spinoff and nonrecurring restructuring
and acquisition integration charges; and "adjusted income from continuing
operations," "adjusted diluted earnings per share from continuing operations,"
and "adjusted effective tax rate," which exclude amortization of acquired
intangibles, as well as nonrecurring items related to the spinoff,
nonrecurring restructuring and acquisition integration charges and
nonrecurring tax items. The most directly comparable GAAP financial measures
for these non-GAAP financial measures are operating expenses, operating
income, segment profit, income from continuing operations, diluted earnings
per share from continuing operations, and effective tax rate. The company has
included below unaudited adjusted financial information for the quarters ended
Sept. 30, 2012 and 2011, as well as for the quarters and six months ended Dec.
31, 2012 and 2011, including a reconciliation of GAAP to non-GAAP financial
measures.

The company's management uses these non-GAAP financial measures to evaluate
the company's performance and provides them to investors as a supplement to
the company's reported results, as they believe this informationprovides
additional insight into the company's operating performance by disregarding
amortization of acquired intangibles and certain non-recurring items. These
non-GAAP financial measures should not be considered in isolation, as a
substitute for, or as superior to, financial measures calculated in accordance
with GAAP, and the company's financial results calculated in accordance with
GAAP and reconciliations to those financial statements should be carefully
evaluated.The non-GAAP financial measures used by the company may be
calculated differently from, and therefore may not be comparable to, similarly
titled measures used by other companies.While the types of items and charges
excluded from the company's non-GAAP financial measures may occur in the
future, the company's management believes that they are not reflective of the
day-to-day offering of its products and services and relate more to strategic,
multi-year corporate actions, without predictable trends, or discrete and
unusual or infrequent transactions that are not indicative of future
operations or business trends.

Cautions Concerning Forward-looking Statements

The CareFusion news release and the information contained herein present
"forward-looking statements" addressing expectations, prospects, estimates and
other matters that are dependent upon future events or developments.
CareFusion intends forward-looking terminology such as "believes," "expects,"
"may," "will," "should," "anticipates," "plans," or similar expressions to
identify forward-looking statements. Such statements are subject to certain
risks and uncertainties, which could cause the company's actual results to
differ materially from those anticipated by the forward-looking statements.
The most significant of these uncertainties are described in CareFusion's Form
10-K, Form 10-Q and Form 8-K reports (including all amendments to those
reports) and exhibits to those reports, and include (but are not limited to)
the following: we may be unable to effectively enhance our existing products
or introduce and market new products or may fail to keep pace with advances in
technology; we are subject to complex and costly regulation; cost containment
efforts of our customers, purchasing groups, third-party payers and
governmental organizations could adversely affect our sales and profitability;
current economic conditions have and may continue to adversely affect our
results of operations and financial condition; we may be unable to realize any
benefit from our cost reduction and restructuring efforts and our
profitability may be hurt or our business otherwise might be adversely
affected; we may be unable to protect our intellectual property rights or may
infringe on the intellectual property rights of others; defects or failures
associated with our products and/or our quality system could lead to the
filing of adverse event reports, recalls or safety alerts and negative
publicity and could subject us to regulatory actions; we are currently
operating under an amended consent decree with the FDA and our failure to
comply with the requirements of the amended consent decree may have an adverse
effect on our business; and our success depends on our key personnel, and the
loss of key personnel or the transition of key personnel, including our chief
executive officer, could disrupt our business. The CareFusion news release
and the information contained herein reflect management's views as of Feb. 7,
2013. Except to the limited extent required by applicable law, CareFusion
undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.



CAREFUSION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
                          Quarter Ended      Quarter Ended   Six Months
                                                             Ended
                          September 30,      December 31,    December 31,
(in millions, except      2012      2011     2012    2011    2012     2011
per share amounts)
Revenue                $  837     $ 828    $ 909   $ 890   $ 1,746  $ 1,718
Cost of Products Sold     401       405      438     443     839      848
     Gross Margin         436       423      471     447     907      870
Selling, General and
Administrative            244       264      249     261     493      525
Expenses
Research and              47        37       48      36      95       73
Development Expenses
Restructuring and
Acquisition               2         7        3       7       5        14
Integration Charges
     Operating Income     143       115      171     143     314      258
Interest Expense and      19        25       19      17      38       42
Other, Net
Income Before Income      124       90       152     126     276      216
Tax
Provision for Income      37        18       44      32      81       50
Tax
Income from Continuing    87        72       108     94      195      166
Operations
Income (Loss) from
Discontinued              (3)       (2)      -       1       (3)      (1)
Operations, Net of Tax
Net Income             $  84      $ 70     $ 108   $ 95    $ 192    $ 165
Per Share Amounts:^1
Basic Earnings (Loss)
per Common Share:
     Continuing        $  0.39    $ 0.32   $ 0.49  $ 0.42  $ 0.88   $ 0.74
     Operations
     Discontinued      $  (0.01)  $ (0.01) $ -     $ -     $ (0.01) $ -
     Operations
     Basic Earnings    $  0.38    $ 0.31   $ 0.49  $ 0.42  $ 0.87   $ 0.74
     per Common Share
Diluted Earnings
(Loss) per Common
Share:
     Continuing        $  0.39    $ 0.32   $ 0.48  $ 0.41  $ 0.87   $ 0.73
     Operations
     Discontinued      $  (0.01)  $ (0.01) $ -     $ -     $ (0.01) $ -
     Operations
     Diluted Earnings  $  0.37    $ 0.31   $ 0.48  $ 0.42  $ 0.86   $ 0.73
     per Common Share
Weighted-Average
Number of Common
Shares Outstanding:
     Basic                221.9     223.8    222.6   224.7   222.3    224.3
     Diluted              224.4     226.3    224.9   226.6   224.7    226.5
Adjusted Financial
Measures:^2
     Operating         $  276     $ 279    $ 282   $ 278   $ 558    $ 557
     Expenses
     Operating Income  $  160     $ 144    $ 189   $ 169   $ 349    $ 313
     Income from
     Continuing        $  99      $ 93     $ 121   $ 111   $ 220    $ 204
     Operations
     Diluted EPS from
     Continuing        $  0.44    $ 0.41   $ 0.54  $ 0.49  $ 0.98   $ 0.90
     Operations
     Effective Tax        30.2%     23.1%    29.6%   26.7%   29.9%    25.1%
     Rate
____________
     Earnings per share calculations are performed separately for each
^1   component presented. Therefore, the sum of the per share components
     from the table may not equal the per share amounts presented.
     Adjusted financial measures are non-GAAP measures that exclude
     amortization of acquired intangibles, as well as certain nonrecurring
^2   items, as discussed above under Use of Non-GAAP Financial Measures.
     These measures are reconciled to comparable GAAP measures in the
     Reconciliation of Non-GAAP Financial Measures included in the pages that
     follow.



CAREFUSION CORPORATION
SEGMENT AND SELECT BUSINESS LINE REVENUES
(UNAUDITED)
                  Quarter               Quarter               Six Months
                  Ended                Ended                Ended
                  September   Percent   December    Percent   December 31,  Percent
                  30,                   31,
(in millions)     2012   2011 Change    2012   2011 Change    2012    2011  Change
Medical
Systems^1
   Dispensing   $ 244  $ 241  1    %  $ 260  $ 257  1    %  $ 504   $ 498   1    %
   Technologies
   Infusion       203    206  (1)       229    239  (4)       432     445   (3)
   Systems
   Respiratory    97     93   4         106    102  4         203     195   4
   Technologies
   Other          7      6    17        7      6    17        14      12    17
     Total
     Medical    $ 551  $ 546  1    %  $ 602  $ 604  -    %  $ 1,153 $ 1,150 -    %
     Systems
Procedural
Solutions^1,2
   Infection    $ 144  $ 138  4    %  $ 152  $ 142  7    %  $ 296   $ 280   6    %
   Prevention
   Medical        80     78   3         86     79   9         166     157   6
   Specialties
   Specialty      62     66   (6)       69     65   6         131     131   -
   Disposables
     Total
     Procedural $ 286  $ 282  1    %  $ 307  $ 286  7    %  $ 593   $ 568   4    %
     Solutions
   Total        $ 837  $ 828  1    %  $ 909  $ 890  2    %  $ 1,746 $ 1,718 2    %
   CareFusion
____________
   During the quarter ended September 30, 2012, we combined our respiratory
^1 diagnostics product line with our Respiratory Technologies business unit within
   our Medical Systems segment. Our respiratory diagnostics product line had
   previously been reported within our Procedural Solutions segment as "Other."
^2 Reflects the impact of businesses reclassified to discontinued operations.





CAREFUSION CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(UNAUDITED)
Adjusted
Financial Data:
                   Segment Profit
(in millions,                                                                 Income from    Diluted EPS
except per share   Medical   Procedural   SG&A       Operating    Operating   Continuing     from
amounts)           Systems   Solutions    Expenses   Expenses^5   Income      Operations^6   Continuing
                                                                                             Operations^7
Quarter Ended
September 30,
2012:
GAAP             $ 102     $ 41         $ 244      $ 293        $ 143       $ 87           $ 0.39
   Restructuring
   and             1         1            -          (2)          2           2              0.01
   Acquisition
   Integration^1
   Amortization
   of acquired     9         6            (15)       (15)         15          10             0.04
   intangibles^2
Adjusted         $ 112     $ 48         $ 229      $ 276        $ 160       $ 99           $ 0.44
Quarter Ended
December 31,
2012:
GAAP             $ 123     $ 48         $ 249      $ 300        $ 171       $ 108          $ 0.48
   Restructuring
   and             2         1            -          (3)          3           3              0.01
   Acquisition
   Integration^1
   Amortization
   of acquired     9         6            (15)       (15)         15          10             0.04
   intangibles^2
Adjusted         $ 134     $ 55         $ 234      $ 282        $ 189       $ 121          $ 0.54
Six Months Ended
December 31,
2012:
GAAP             $ 225     $ 89         $ 493      $ 593        $ 314       $ 195          $ 0.87
   Restructuring
   and             3         2            -          (5)          5           5              0.02
   Acquisition
   Integration^1
   Amortization
   of acquired     18        12           (30)       (30)         30          20             0.09
   intangibles^2
Adjusted         $ 246     $ 103        $ 463      $ 558        $ 349       $ 220          $ 0.98
Quarter Ended
September 30,
2011:
GAAP             $ 82      $ 33         $ 264      $ 308        $ 115       $ 72           $ 0.32
   Restructuring
   and             5         2            -          (7)          7           7              0.03
   Acquisition
   Integration^1
   Amortization
   of acquired     13        5            (18)       (18)         18          12             0.05
   intangibles^2
   Spinoff^3       2         2            (4)        (4)          4           4              0.02
   Income Tax      -         -            -          -            -           (2)            (0.01)
   Items^4
Adjusted         $ 102     $ 42         $ 242      $ 279        $ 144       $ 93           $ 0.41
Quarter Ended
December 31,
2011:
GAAP             $ 115     $ 28         $ 261      $ 304        $ 143       $ 94           $ 0.41
   Restructuring
   and             3         4            -          (7)          7           7              0.03
   Acquisition
   Integration^1
   Amortization
   of acquired     13        6            (19)       (19)         19          13             0.06
   intangibles^2
   Income Tax      -         -            -          -            -           (3)            (0.01)
   Items^4
Adjusted         $ 131     $ 38         $ 242      $ 278        $ 169       $ 111          $ 0.49
Six Months Ended
December 31,
2011:
GAAP             $ 197     $ 61         $ 525      $ 612        $ 258       $ 166          $ 0.73
   Restructuring
   and             8         6            -          (14)         14          14             0.06
   Acquisition
   Integration^1
   Amortization
   of acquired     26        11           (37)       (37)         37          25             0.11
   intangibles^2
   Spinoff^3       2         2            (4)        (4)          4           4              0.02
   Income Tax      -         -            -          -            -           (5)            (0.02)
   Items^4
Adjusted         $ 233     $ 80         $ 484      $ 557        $ 313       $ 204          $ 0.90
____________
   Restructuring and acquisition integration charges primarily relate to nonrecurring expenses associated
^1 with closing and consolidating facilities, as well as rationalizing headcount, and aligning
   operations.
^2 Amortization of acquired intangibles relate to the non-cash expenses associated with amortization of
   identifiable intangible assets of acquired businesses.
^3 Spinoff charges primarily relate to nonrecurring incremental expenses associated with our spinoff from
   Cardinal Health, Inc.
   Income tax items primarily relate to the tax impact of nonrecurring restructuring and acquisition
^4 integration and spinoff charges, as well as nonrecurring discrete benefits or charges associated with
   the spinoff.
^5 Operating expenses consist of selling, general and administrative, research and development, and
   restructuring and acquisition integration expenses.
^6 Income from continuing operations is presented net of tax effect.
^7 Earnings per share calculations are performed separately for each component presented. Therefore, the
   sum of the per share components from the table may not equal the per share amounts presented.



CAREFUSION CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Adjusted Effective
Tax Rate:
                                                     Amortization
                                   Nonrecurring
(in millions)          GAAP        Items^1           of Acquired    Adjusted^2

                                                     Intangibles
Quarter Ended
September 30,
2012:
 Income Before   $   124     $   2              $  15           $ 141
Income Tax
 Provision for   $   37      $   -              $  5            $ 42
Income Tax
 Effective Tax       29.8%       70.2%             32.7%          30.2%
Rate^3
Quarter Ended
December 31, 2012:
 Income Before   $   152     $   3              $  15           $ 170
Income Tax
 Provision for   $   44      $   -              $  5            $ 49
Income Tax
 Effective Tax       29.1%       33.3%             33.3%          29.6%
Rate^3
Six Months Ended
December 31, 2012:
 Income Before   $   276     $   5              $  30           $ 311
Income Tax
 Provision for   $   81      $   -              $  10           $ 91
Income Tax
 Effective Tax       29.4%       40.0%             33.3%          29.9%
Rate^3
Quarter Ended
September 30,
2011:
 Income Before   $   90      $   11             $  18           $ 119
Income Tax
 Provision for   $   18      $   2              $  6            $ 26
Income Tax
 Effective Tax       20.5%       25.5%             33.3%          23.1%
Rate^3
Quarter Ended
December 31, 2011:
 Income Before   $   126     $   7              $  19           $ 152
Income Tax
 Provision for   $   32      $   3              $  6            $ 41
Income Tax
 Effective Tax       25.1%       27.1%             33.3%          26.7%
Rate^3
Six Months Ended
December 31, 2011:
 Income Before   $   216     $   18             $  37           $ 271
Income Tax
 Provision for   $   50      $   5              $  12           $ 67
Income Tax
 Effective Tax       23.2%       26.1%             33.3%          25.1%
Rate^3
Adjusted EPS Outlook for Fiscal Year Ended June
30, 2013:
GAAP Diluted Earnings per Common Share from Continuing Operations   $1.90 -
                                                                    $2.00
 Estimated charges for nonrecurring items related to
restructuring and acquisition integration, net of tax (mid-point    $0.02
of an estimated range of $0.01 to $0.03 per diluted share)
 Estimated acquisition-related intangible amortization, net of    $0.19
tax
Adjusted Diluted Earnings per Common Share from Continuing          $2.11 -
Operations                                                          $2.21

   Reflects nonrecurring charges primarily related to the spinoff,
^1 nonrecurring restructuring and acquisition integration charges, and
   nonrecurring income tax items.
   Adjusted financial information reflects GAAP results adjusted on a non-GAAP
^2 basis to exclude nonrecurring items and amortization of acquired
   intangibles noted above.
   Effective tax rate calculations are performed based on whole dollar
^3 amounts, and therefore may not equal the calculations based on amounts
   rounded in millions presented in the table above.



SOURCE CareFusion Corp.

Website: http://www.carefusion.com
Contact: Media, Kristen Cardillo, +1-858-617-2317,
kristen.cardillo@carefusion.com, or Investors, Jim Mazzola, +1-858-617-1203,
jim.mazzola@carefusion.com