Rite Aid Cuts Forecasts; Its Shares Sink 19%

Rite Aid Corp., the third-largest U.S. drugstore chain, cut its annual sales and earnings forecasts because of increased competition from mail-order pharmacies.

The company’s shares fell 19%.

Net income for its fiscal year ending Feb. 26 will rise to as much as $149.5 million, or 22 cents a share, down from a previous forecast of as much as $167 million, the Camp Hill, Pa.-based company said. Sales are now expected to increase to as much as $17 billion instead of $17.3 billion.

Shares of Rite Aid fell 85 cents to $3.70 on the NYSE.

* Virco Mfg. Corp., a Torrance-based maker of classroom furniture, reported fiscal second-quarter net income of $2 million, or 15 cents a share, contrasted with a net loss of $8.3 million, or 63 cents, in the same quarter last year. Revenue for the quarter ended July 31 was $68.8 million, up from $65.9 million last year. Virco’s shares rose 10 cents to $7.65 on the American Stock Exchange.

* Upscale retailer Neiman Marcus Group Inc. said earning for its fiscal fourth quarter almost tripled as shoppers bought more designer dresses and handbags.

* Drug wholesaler McKesson Corp. said its earnings would fall short of analysts’ estimates in its fiscal second quarter because the rate of drug price increases it could pass along to customers had been slower than expected.

* Yellow Roadway Corp., the biggest U.S. trucker, raised its third-quarter profit forecast by 10 cents a share to as much as $1.35, saying strong demand for freight hauling helped the company increase rates.