UPDATE: Walgreen Co. Reports 38.3% Increase in Q3 Diluted Earnings Per Share

Walgreen Co. WAG WAG today announced record earnings and sales for the third quarter of fiscal year 2011. Net earnings per diluted share for the quarter ended May 31 increased 38.3 percent to 65 cents, compared with 47 cents per diluted share in the year-ago quarter. This year's results include the impact of 1 cent per diluted share in restructuring and restructuring-related costs associated with the company's Rewiring for Growth initiative. Last year's third quarter results included the negative impact of 4 cents per diluted share from the elimination of the tax benefit for the Medicare Part D subsidy for retiree benefits that was the result of the enactment of the Patient Protection and Affordable Care Act, 2 cents per diluted share from costs associated with the Duane Reade acquisition and 1 cent per diluted share in costs associated with Rewiring for Growth. Net earnings were $603 million, a 30.3 percent increase from $463 million in the same quarter a year ago. During the third quarter, the company returned $535 million to shareholders through share repurchases and dividends. Cash flow from operations for the quarter reached $1.2 billion, for a total of $3.3 billion year to date. Third quarter sales increased 6.8 percent from the prior-year quarter to a record $18.4 billion. Total sales in comparable stores (those open more than a year) increased 4.1 percent in the quarter, while front-end comparable drugstore sales increased 3.9 percent in the quarter.