Drug store chain profits jump amid rapid expansion

Wednesday, Oct. 4, 2000 | 11:20 a.m.

THE ASSOCIATED PRESS

DEERFIELD, Ill. -- Walgreen Co. capped a year of rapid expansion with a 22 percent jump in profits in its fourth quarter, benefiting from booming prescriptions and the healthy condition of the U.S. drugstore business.

Prescription drug sales, which account for more than half the company's revenues, rose 24 percent in the July-through-September period and 25 percent for the year.

After opening a store on average every 19 hours over the past year, the company said its strong profits have encouraged it to open another 505 during the coming year.

"We continue to meet -- and exceed -- our expansion plans while also meeting earnings expectations," said Chairman Dan Jorndt.

Excluding special items, earnings for the company's fourth quarter were $196 million, or 19 cents per share, up from $160.6 million, or 16 cents per share, a year earlier.

The gain matched the estimate of a consensus of analysts surveyed by First Call/Thomson Financial.

Sales rose to $5.38 billion for the quarter, up 18 percent from $4.56 billion a year earlier.

Walgreen opened 462 new stores during the year, and as of Aug. 31 operated 3,165 drugstores in 43 states and Puerto Rico -- a net increase of 344 over a year earlier.