CVS Caremark profit falls on costs, charges

[May 05, 2009]  NEW YORK (AP) -- CVS Caremark Corp. said Tuesday that charges and higher costs outweighed a a boost in the drugstore operator's pharmacy sales, pushing first-quarter profit down slightly.

The company earned $738.4 million, or 50 cents per share, down from profit of $745 million, or 51 cents per share, a year prior. Revenue rose 12 percent to $23.39 billion from $21.33 billion.

Excluding buyout costs, the company says it earned 55 cents per share. Wall Street expected 54 cents per share on revenue of $23.64 billion.

Woonsocket, R.I.-based CVS said sales from pharmacy services and retail pharmacies rose, despite one less reporting day during the quarter. Revenue was also helped by the acquisition of Longs Drugs.

CVS, which also manages prescription benefits for insurers and employers, saw pharmacy benefit network revenue rose 6.8 percent, while mail order service revenue rose 8.4 percent.

Pharmacy services revenue rose 7.2 percent to $11.5 billion during the quarter, while retail network claims processed rose 4.4 percent, primarily because of the addition of RxAmerica.

The retail segment gained 13.9 percent to reach $13.5 billion in revenue, with same-store sales rising 3.3 percent.

During the quarter, CVS opened 39 new retail stores while closing 50, 5 specialty pharmacies and one mail order facility. Also, it moved 53 retail stores. As of March 31, CVS operated 6,912 stores, 52 specialty pharmacy stores, 20 specialty mail order pharmacies and 6 mail order pharmacies in 43 states, the District of Columbia and Puerto Rico.

[Associated Press]

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