Walgreen 4th-Quarter Profit Up 25 Pct.

A Walgreens store shopper leaves the store in Palo Alto, Calif., Monday, Sept. 25, 2006. Walgreen Co., the nation's largest drugstore chain by sales, on Monday said fourth-quarter profit jumped 25 percent, led by stronger prescription revenue. (AP Photo/Paul Sakuma) (Paul Sakuma - AP)

The year-earlier quarter included $54.7 million in pretax costs related to Hurricane Katrina, while the recent quarter includes $7.3 million in pretax litigation gains.

Revenue grew 16 percent to $12.17 billion from $10.49 billion, or slightly better than analysts' estimate of $12 billion. Same-store sales, or sales at stores open at least one year, rose 9.7 percent in the quarter.

Walgreen had a net increase of 476 new stores in fiscal 2006 _ adding a new store on average every 18 hours during the biggest store expansion year in company history. The company currently operates 5,461 stores in 47 states and Puerto Rico.

CEO and President Jeff Rein said the expansion leaves the company on track to reach its goal of 7,000 stores by 2010 and said acquisitions are possible.

"We remain committed to organic store growth while carefully considering unique acquisition opportunities that are a solid fit with our store base and culture," he said.

Full-year earnings increased to $1.75 billion, or $1.72 per share, from $1.56 billion, or $1.52 per share, in the prior year. Sales for the full year rose to $47.41 billion from $42.2 billion in fiscal 2005.

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