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CVS Reports $130.2 Million Loss in Fourth Quarter

PROVIDENCE, R.I. - CVS Corp. said today it saw a $130.2 million loss for the fourth quarter, mostly due to a $352.5 million charge related to its restructuring plan, The Associated Press reports.

Net sales rose 8.4 percent to $6 billion compared to $5.5 billion for the prior year's fourth quarter, while pharmacy same-store sales rose 10.1 percent.

"While 2001 was a challenging year, our fourth-quarter sales trends marked the beginning of improved momentum," chairman, president and chief executive Tom Ryan said in a news release.

CVS leads Deerfield, Ill.-based rival Walgreens in the number of stores, but Walgreens leads in revenue, according to the AP.

The $352.5 million charge related to its restructuring includes closing 229 stores, closing a mail-order facility in Ohio, a distribution center in North Carolina and staff cuts.

During the quarter, CVS opened 67 new stores, closed 11 and relocated an additional 40 stores.

"Our cost and operational streamlining plan, along with a series of sales generation initiatives, will strengthen our long-term prospects," Ryan said. "While 2002 will be a transition year as the benefits of our actions take hold, our plan is designed to generate sustainable earnings growth of 12-15 percent longer term."
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