Summary Box: CVS Caremark 1Q profit declines

AP News
Posted: May 05, 2011 12:55 PM

DOWN QUARTER: CVS Caremark Corp. said its net income slipped in the first quarter as profits shrank at its Caremark pharmacy benefits management business.

CONTRACT COSTS: The company announced in February that Caremark's profit would fall in 2011 _ its second consecutive year of declining income _ because of expenses related to an enormous contract with Aetna Inc., and lower prices from a contract with federal employees.

LOOKING AHEAD: CVS Caremark's adjusted results were slightly better than analysts expected, and the company said it still expects growth from Caremark in 2012.