CVS 3rd-quarter net rises 14 percent

Woonsocket-based CVS Corp., the No. 2 U.S. drugstore
chain, said third-quarter earnings rose 14 percent as the company
sold more generic drugs and general merchandise. The retailer
boosted its dividend for the first time in more than five years.

Net income climbed to $187.8 million, or 46 cents a share,
from $164.4 million, or 40 cents, a year earlier, the Woonsocket,
Rhode Island-based company said in a statement. Sales in the
quarter ended Sept. 27 rose 8.5 percent to $6.38 billion from
$5.88 billion.

CVS benefited from higher sales of generic versions of
prescription drugs such as antibiotic Augmentin, which generate
greater profit than name-brand medications. Sales at stores open
at least a year climbed 6.4 percent, led by an 8.5 percent gain
in pharmacy sales. Same-store sales of cosmetics, snacks and
other non-prescription goods rose at the fastest pace in six
quarters.

Bloomberg News

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