Jan 30 (Reuters) - Drug distributor Cardinal Health ( CAH )

said on Thursday it may need to increase prices of some

of its products if the proposed tariffs on Mexico go into

effect, to counter increasing costs of manufacturing in the

region.

Redirecting production from Mexico is difficult as the

cost of production is "pretty low cost" CEO Jason Hollar told

Reuters in an interview.

Mexico, along with China and Canada, has been

threatened

with tariffs by U.S. President Donald Trump

unless the countries

move to halt flows of illegal immigrants and the deadly

opioid fentanyl into the U.S.

"If there are widespread tariffs anywhere from the 10%

to 25% range, I anticipate there will be corresponding price

increases for the customers," said Hollar.

Cardinal said it might move production away from China,

where it has limited supply chain exposure but is also expected

to be affected by tariffs, to Southeast Asia.

The company said it was closely monitoring the "highly

fluid tariff environment" but did not specify if potential

tariff impacts had been factored into its fiscal 2025 forecast.

Earlier in the day, the Dublin, Ohio-based Cardinal said

it expected an adjusted profit of $7.85-$8.00 per share, banking

on strong demand for costly specialty medicines and branded

drugs in its pharmaceuticals unit.

Cardinal had previously forecast a profit of $7.75 to

$7.90 per share for fiscal year 2025 ending in June 30. Analysts

were expecting a profit of $7.86 per share, according to LSEG

data.

On an adjusted basis, Cardinal Health ( CAH ) reported a profit of

$1.93 per share in the second-quarter, beating analysts'

estimates of $1.76 per share, according to LSEG data.