McKesson Corp., the third-biggest U.S. drug wholesaler,...

McKesson Corp., the third-biggest U.S. drug wholesaler, said fiscal second-quarter profit rose 28% as pharmacies bought more medicines and software sales improved.

Net income for the quarter ended Sept. 30 rose to $79 million, or 27 cents a share, from $61.9 million, or 22 cents, a year earlier. Sales rose 23% to $12.2 billion.

Drug wholesalers are benefiting as doctors write more prescriptions and drug prices rise. McKesson’s sales of pharmaceuticals and medical and surgical supplies rose 19% to $8.7 billion. McKesson, based in San Francisco, also boosted its sales of software and other computer products and services 7% to $235.9 million.

Shares of McKesson rose $1.56 to $38.95 on the New York Stock Exchange. The shares have risen 31% in the last 12 months.

Excluding costs of $16.3 million to streamline distribution operations and the medical supply unit, profit would have been $95.3million, or 32 cents a share. On that basis, profit beat the 31-cent average estimate of analysts polled by Thomson Financial/First Call.

For the third straight quarter, sales recovered for the company’s once-troubled health-care software unit, acquired in the 1999 purchase of HBO & Co.

At a Glance:

Other California company earnings, excluding one-time gains and charges unless noted:

* Avery Dennison Corp. said net income fell 15% to $61.7 million, or 63 cents a share, from $73million, or 73 cents, from a year earlier. Revenue for the Pasadena-based adhesives maker fell 3.5% to $966.7 million. The company increased the number of jobs eliminated to more than 550 at the end of the quarter from an initial goal of 350 positions.

* Bebe Stores Inc. reported net income rose 12% to $6.48 million, or 25 cents a share, from $5.84 million, or 23 cents, a year earlier. Revenue at the Brisbane, Calif.-based retailer of women’s clothing rose 19% to $73.6 million.

* California Pizza Kitchen said net income in the third quarter was $3.37million, or 18 cents a share, compared with $2.6 million, or 17 cents, a year earlier. The Los Angeles company has 20% more shares outstanding than a year ago. Sales rose 17% to $64.3 million. The restaurant chain, citing weak consumer spending, said it expects fourth-quarter earnings of 14 to 16 cents a share, below analysts’ average estimate of 20 cents.

* Endocare Inc., an Irvine medical device firm, posted a net loss of $1.3 million, or 7 cents a share, for the third quarter, compared with a year-earlier net loss of $2.9 million, or 22 cents. Revenue rose to $4.2 million from $1.8 million.

* Hines Horticulture Inc., an Irvine operator of commercial nurseries, reported an operating loss of $1.9 million for the third quarter, contrasted with operating income of $1.4 million for the same period last year. The company reported a net loss of $8 million, or 36 cents a share, including one-time charges, contrasted with a profit of $1.1 million, or 5 cents, a year earlier. Sales were down 3% to $64.7 million.

* McClatchy Co., publisher of the Sacramento Bee and Star Tribune in Minneapolis, said net income fell 34% to $14.2 million, or 31 cents a share, from $21.6 million, or 48 cents, a year earlier. Revenue for the Sacramento-based firm was $264 million, down 5.5%.