Profits climb 14 percent

Tuesday, June 24, 2003 | 9:43 a.m.

DEERFIELD, Ill. -- Walgreen Co. reported a 14 percent increase in third-quarter profits Monday, helped by rising prescription drug sales and a beneficial legal settlement.

But the nation's largest drugstore chain said its operating margins were lower than its expectations, squeezed by increased costs as it adds more 24-hour stores.

Net earnings for the three months ended May 31 were $296.1 million, or 29 cents a share, compared with $259 million, or 25 cents a share, a year earlier.

Sales were $8.3 billion, up 13 percent from $7.4 billion a year earlier. Prescriptions, which accounted for 63 percent of sales, jumped 15 percent.

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