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NEW YORK - CVS Corp. today said it plans to cut staff and close about 200 of its drugstores in the first quarter. The news came with its report of a 16 percent drop in third-quarter earnings.
CVS, the second-largest U.S. drugstore chain behind Walgreen Co., said it will take a fourth-quarter charge of $350 million for the restructuring, which also includes the closing of one of its 10 distribution facilities. The company currently operates around 4,000 retail and specialty pharmacy stores in 32 states and the District of Columbia.
"We are disappointed with our results for the third-quarter and committed to taking the necessary actions to improve performance and restore healthy long-term growth," CVS Chairman, President and Chief Executive Tom Ryan said in a statement.
The company reported third-quarter net income of $123.7 million, or 30 cents a diluted share, down from year-earlier earnings of $147.2 million, or 36 cents per diluted share, excluding a $19.2 million gain from the settlement of a class-action lawsuit, The Associated Press reported.