Walgreen profit rises on cost controls

Drugstore chain Walgreen Co. said Monday its fiscal third-quarter profit rose 2 percent as it focused on cost control and maintained a rapid expansion pace amid a difficult retail environment. The results fell slightly short of Wall Street's expectations. But investors were impressed by the Deerfield, Ill.-based company's cost discipline and upbeat outlook and pushed its stock higher. Shares rose 67 cents, or 1.9 percent, to $35.74 in morning trading after climbing as much as 3 percent. Earnings for the three months ending May 31 were $572.3 million, or 58 cents per share, up from $561.2 million, or 56 cents per share, a year earlier.