Cardinal Health Inc.'s (CAH) reported Thursday that its fiscal third-quarter net income fell 12% on costs related to the planned spinoff of its clinical and medical products businesses.

Chairman and Chief Executive R. Kerry Clark, which said the company now sees fiscal-year earnings at the low end of its prior forecast, noted the company remains "in a strong, long-term competitive position and made progress during the quarter against some of our short-term challenges."

Hospital-spending delays prompted the medical-goods supplier last month to announce another round of job cuts and cost-control measures. CareFusion, which is planned to be spun off later this year, is eliminating 1,300 jobs or 7.8% of the unit's work force.

The spinoff of the faster-growing unit and a generator of higher margins than Cardinal's much larger, core drug-distribution business is expected to produce savings of up to $130 million in two years.

For the quarter ended March 31, Cardinal Health reported net income of $312.9 million, or 87 cents a share, down from $356 million, or 99 cents a share, a year earlier. The latest quarter included 10 cents in costs related to the planned spinoff.

Revenue rose 8.9% to $24.94 billion.

Analysts polled by Thomson Reuters were expecting earnings, excluding items, of 95 cents a share on revenue of $24.01 billion.

Gross margin fell to 5.6% from 6.4%.

Pharmaceuticals-supply earnings rose 2%, helped by higher sales to existing customers. Medical-segment profit fell 22% on a reserve for problems with some infusion pumps the as revenue dropped 6% on the stronger dollar.

Shares closed Wednesday at $11.80 and were inactive premarket.

-By Mike Barris, Dow Jones Newswires; 201-938-5658; mike.barris@dowjones.com