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Walgreen's earnings shine
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October 5, 1998: 11:02 a.m. ET
Drugstore chain reports record profit for 4Q, year; cost controls, sales cited
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NEW YORK (CNNfn) - Walgreen Co. Monday reported record earnings for the fourth quarter and fiscal year, citing strong sales and expense controls.
Net earnings for the fiscal fourth quarter were up 43.4 percent to $152 million, or 30 cents per diluted share, compared with $106 million, or 22 cents per diluted share, a year earlier.
Analysts had forecast earnings of 25 cents per share for the quarter ended Aug. 31.
The company said profit was aided by a one- time pre-tax gain of $37 million, or 5 cents per share, resulting from the sale of 14 pharmacy facilities.
For the year, earnings increased 17.2 percent to $511 million, or $1.02 per diluted share, from $436 million, or 88 cents per share, last year. Earnings were in line with analysts' expectations of $1.02.
Deerfield, Ill.-based Walgreen credited stringent expense control for strong profits, as well as cost savings from its Intercom Plus pharmacy computer system.
Sales rose 16.3 percent to $3.8 billion for the quarter and 14.5 percent to $15.3 billion for the year.
The company said it surpassed its expansion goal in 1998 by opening 304 stores during the fiscal year, including 94 that were relocated to more profitable sites. Plans call for an additional 365 stores in fiscal 1999.
Shares of Walgreen [WAG] fell 1 to 41-3/8 on the New York Stock Exchange in early trade. 
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Walgreens
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