FoxMeyer parent's net, sales up

Drug Store News, Feb 20, 1989

FoxMeyer parent's net, sales up

PITTSBURGH - National Intergroup, parent of FoxMeyer Drug Co., reported gains in net income and sales for third-quarter fiscal '89 ended Dec. 31.

Third-quarter net income was $22.5 million, or 97 cents per share, after preferred dividends, compared with $3.4 million, or 10 cents per common share in the previous year's third quarter. The 97 cents per share for the current quarter includes a net gain of 26 cents per share for discontinued operations.

Sales for the quarter advanced 14 percent, to $778.6 million, from $682.6 million for the like period last year. NII said the increase reflected continued strong demand at BoxMeyer Drug Co. and National Aluminum Corp.

"We are encouraged by the improved earnings achieved from continuing operations in the third quarter," said Howard M. Love, NII chairman and ceo. "FoxMeyer Drug Co.'s business was strong during the quarter, with sales up 19 percent."

FoxMeyer Corp. had operating income of $4.7 million on sales of $655.8 million for third-quarter FY89, compared with operating income of $7.7 million on sales of $575 million for the prior-year period. For the nine months, FoxMeyer Corp.'s operating loss was $29.6 million on sales of $1.9 billion, versus operating profit of $15.1 million on sales of $1.6 billion for the year-ago period.

NII's net loss for the nine months totaled $18.4 million, or $1.04 per share, after preferred dividends, on sales of $2.2 billion. This compares to net income of $9.7 million, or 26 cents per share, on sales of $2.5 billion for the previous nine-month period.