Walgreen Reports 18% Jump in Profit

Walgreen Co., the largest U.S. drugstore chain, said its quarterly profit rose 18%, helped by sales of prescription drugs and digital-photo processing.

Net income had its biggest gain in almost two years, climbing to $327.2 million, or 32 cents a share, from $277.1 million, or 27 cents, a year earlier. Sales in its fiscal fourth quarter ended Aug. 31 rose 14% to $9.43 billion, the Deerfield, Ill., retailer said.

Walgreen was expected to earn 31 cents a share, the average estimate of 16 analysts surveyed by Thomson First Call.

Shares of Walgreen rose 22 cents to $36.48 on the New York Stock Exchange.