Walgreen Posts Higher Quarterly Profit
New York City Walgreen Co. reported a higher quarterly net profit on Monday, helped by prescription sales and cost controls.
Net profit rose nearly 12% to $443 million in the quarter that ended Aug. 31, compared to $396.5 million a year ago.
The reported quarter’s profit included a $79 million benefit tied to a vacation accrual adjustment, Walgreen said.
In the year-ago quarter, Walgreen unexpectedly posted its first quarterly profit decline in almost 10 years due to lower reimbursements for some generic drugs, higher salary and other expenses.
Sales rose 8.8% to $14.6 billion, while same-store rose 2.6%. The company said prescription sales rose 7.9% and made up 66% of sales in the quarter.
Walgreen said it filled 0.6% more prescriptions in stores open at least a year than it did in the year-earlier quarter. It said overall U.S. retail-prescription volume fell 1.9% in the same period, excluding Walgreen.
“Tough times are forcing people to make tough choices—delaying doctor visits and prescription use,” Walgreen CEO Jeffrey Rein said.
Walgreen has made an unsolicited bid for Longs Drug Stores Corp. to gain more stores, particularly in California and Hawaii. Longs, which has cited possible regulatory hurdles in the Walgreen offer, has already agreed to be bought by CVS Caremark Corp. for $71.50 per share.
Archileti named DeCA acting chief of staff
FORT LEE, Va. Vicki Archileti was appointed acting chief of staff for the Defense Commissary Agency, effective Sept. 8. She will temporarily leave her position as director of corporate planning for six months. In the interim, Sheila Walton will be acting director corporate planning through Dec. 12, and Mark Simpson will assume the duties from Dec. 13 to March 13, 2009.
“I am excited to serve in this newly created position and look forward to tackling these new responsibilities,” Archileti said. “I believe this position is critical because it involves managing day–to–day headquarters activities which will further allow our executive leaders to focus on significant operational initiatives.”
Archileti was selected director of corporate planning in January 2004. In that position, she has been responsible for anticipating and planning for DeCA’s external challenges.
Schoonover to get $1.8M in severance deal
RICHMOND, Va. Philip Schoonover, the former head of Circuit City, will receive a severance package worth $1.8 million, according to an SEC filing.
Schoonover will receive his annual base salary and a target bonus for the current fiscal year, each worth $900,000.
Schoonover also will receive health and welfare benefit plan participation for two years, up to $50,000 in outplacement services and the acceleration of the vesting of his stock options and restricted stock awards that would have vested before Oct. 4.