Rite Aid Posts Loss, May Shed More Stores

Rite Aid Corp., the third-largest U.S. drugstore chain, on Monday reported a loss for its fiscal second quarter and said it might shed more West Coast stores.

Higher interest payments and slowing West Coast sales contributed to the loss of $67.9 million, or 26 cents a share, including a pretax charge of about $34 million for closing or moving 106 stores, the company said. Sales rose 17% to $3.51 billion, with sales at stores open a year or more up 8%.

Excluding the one-time loss, analysts had been expecting earnings of 24 cents a share in the quarter, on average. In late trading after the earnings were released Rite Aid stock plunged $2.50 to $10 on the New York Stock Exchange.

The shares have tumbled 74% this year as the retailer restated three years of earnings, Florida accused it of overcharging customers and it struggled to integrate purchases.

Executives of Rite Aid, which originally said it might sell 250 West Coast stores, said during a conference call that that number could rise to 350.

The Camp Hill, Pa.-based company cut to between 250 and 260 the number of stores it plans to open or move this fiscal year and 150 the next--less than last year’s roughly 570 stores.

At a Glance

Other earnings, excluding one-time gains or charges unless noted, include:

OTHER INDUSTRIES

*Abbott Laboratories said its third-quarter profit increased 10% to $587 million, or 38 cents a share, as rising sales of diagnostic tests and an ulcer drug made up for setbacks with other medicines. Sales rose 2.8% to $3.12 billion.

* Harley-Davidson Inc.’s third-quarter earnings rose 25% to $65.4 million, or 42 cents a share, a penny higher than estimates, as the motorcycle maker continued to increase production to meet demand. Sales jumped 20% to $623.2 million.

TECHNOLOGY

*Applied Micro Circuits Corp. said its fiscal second-quarter earnings climbed 95% to $9.1 million, or 15 cents a share, 2 cents better than analyst forecasts. The maker of semiconductors for high-capacity communications equipment said sales soared 49% to $37.9 million.

* Leap Wireless International Inc., a telephone service company spun off from Qualcomm Inc. last year, said its loss from operations widened to $47.4 million, or $2.59 a share, in its fiscal fourth quarter from a pro forma loss of $30 million a year ago, as it exited two failed ventures in Russia. Revenue climbed 47% to $5.9 million.

* Novellus Systems Inc.’s third-quarter earnings soared 186% to $21.8 million, or 54 cents, beyond expectations of 46 cents, as revenue climbed 45% to $154.9 million.

MEDIA

*Gannett Co.’s profit rose 18% in the third quarter to $207.5 million, or 74 cents a share, beating estimates by 3 cents, as ad demand increased at its newspapers, particularly USA Today. Revenue rose 11% to $1.36 billion.

* E.W. Scripps & Co. said its profit from operations was 36 cents a share in the third quarter, below analysts’ estimate of 40 cents. Weak television advertising and disappointing ratings at the Home & Garden Television that’s cable channel hurt results. Revenue increased 7.7% to $369.9 million, led by an 8.6% rise in newspaper ad revenue.