CVS Caremark issues disappointing 2009 forecast

NEW YORK — Drugstore operator and pharmacy benefits manager CVS Caremark Corp. on Friday forecast a smaller 2009 profit than Wall Street expected, pointing to uncertainty in the U.S. economy.

On a conference call announced late Thursday, CVS Chief Executive Tom Ryan said the company expects a profit of $2.53 to $2.61 per share in 2009, which includes costs of 6 to 7 cents per share for the buyout and integration of Longs Drugs Stores.

The 2009 outlook was less than analysts had expected: according to Thomson Reuters, analysts estimated a profit of $2.74 per share on average. Such estimates generally exclude one-time charges.

Ryan said the company is doing "extremely well" but noted fewer people are visiting their doctors due to the recession, and use of prescription drugs has decreased.

Ryan repeated the company's estimate that the will reduce CVS' profit by 6 to 7 cents per share in 2009. For 2008, the company maintained its forecast of $2.42 to $2.47 in profit. Analysts expect $2.44 per share.

Shares of the Woonsocket, R.I., company fell $3.65, or 12.4 percent, to close at $25.69.

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