Summary Box: CVS Caremark 2Q profit slides

AP News
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Posted: Aug 04, 2011 10:30 AM
Summary Box: CVS Caremark 2Q profit slides

THE QUARTER: CVS Caremark Corp.'s profit slipped in the second quarter as its pharmacy benefits management business negotiated lower prices to keep some business.

THE DEALS: Caremark's revenue grew about 11 percent, but its profit fell because of the reduced prices. The company said the main reason for the decline was a government contract that was renewed in the third quarter of 2010. Revenue from CVS drugstores rose about 4 percent.

THE NUMBERS: CVS' adjusted profit of 65 cents per share was a penny more than Wall Street had forecast. Its revenue of $26.63 billion was $130 million less than expected.