CVS CEO does not see large drop in spending

WOONSOCKET – CVS Caremark Corp. CEO Thomas Ryan said last week in an interview with Bloomberg Television that slowing consumer spending is having a “limited effect” on the biggest U.S. drugstore chain by number of stores.
“People will keep filling prescriptions and taking care of personal hygiene and nutrition,” Ryan said last Tuesday. About 85 percent of the company’s revenue comes from purchases of drugs and health-care products.
Consumers are trimming spending as they face higher gasoline and food prices, declining home values and more uncertainty about employment after further U.S. job losses.
“You have about 3 percent of our business that’s affected by the economy,” Ryan, 55, said.
Revenue will rise to “well over $85 billion” in 2008, CVS Caremark said in a statement. That’s in line with a January forecast for sales growth of 13 percent to 16 percent compared with a year earlier, spokeswoman Carolyn Castel said by phone. Eighteen analysts surveyed by Bloomberg estimated revenue of $87.1 billion this year. &#8226