Walgreen Profits Up 10%

Walgreen Co. WAG has reported a 10% rise in profits second quarter. Walgreen, the largest U.S. drugstore chain, had a second quarter net income of $739 million, or $0.80 a share. Walgreen's profits were positively affected by a later than anticipated cold and flu season, which led to an increase in demand for flu and cold-related prescriptions. Also helping to benefit profits was the acquisition of Duane Reade, a New York retail chain, in April. Sales in the second quarter rose to $18.5 billion, an 8.9% increase. Last quarter Walgreen filled approximately 20% of all retail prescriptions for the first time in history. Profits last year were $669 million, or $0.68 a share. Walgreen is also paring down its endeavors to focus on its network of stores. This month Walgreen decided to sell its business that negotiates drug prices for insurance plans. This side business will be sold for $525 million in a sale that will be closed by June.