MEMO: WALGREEN REPORTS THIRD-QUARTER EARNINGS

Walgreen Co.'s third-quarter profits were up 10 percent and would have been higher but for heavy investment in expansion, which will peak this year after four years of rapid growth. About 475 Walgreens will be opened in 2001 an average of one every 18 hours.

Net earnings for the quarter ended May 31 were $213.4 million, or 21 cents a share, up from $193.6 million, or 19 cents a share, a year earlier. Sales for the quarter rose 17 percent to $6.3 billion from $5.4 billion a year ago.

The company opened 105 new stores in the quarter and aims to operate 6,000 stores by 2010. As of May 31, it operated 3,424 drugstores in 43 states and Puerto Rico.

For the first nine months of its fiscal year, Walgreen earned $668.7 million, or 65 cents a share, up from $560.3 million, or 55 cents a share, a year ago. Revenue rose to $18.34 billion from $15.83 billion a year ago.