CVS 2001 Annual Report Download - page 5

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I am happy to repo rt that earnings gro wth is
pro jected in the range o f 8- 10% in 2002, and in the lo nger
term we believe 12- 15% gro wth is achievable. Our
co mmitment to resto re lo ng-term, sustained, do uble-digit
earnings gro wth is unwavering.
To better positio n us fo r the future, we co mpleted a
co mprehensive business review, which resulted in a plan to
streamline o peratio ns. As a result, we will c lo se 229 sto res as
well as o ne distributio n center. We will also co nso lidate the
o peratio ns of o ur pharmacy benefit management co mpany,
PharmaCare, with o ur specialty pharmacy business, Pro Care, and
clo se o ne mail facility. We to o k a no n-recurring $353 millio n
pre- tax charge in the fo urth quarter related to this restructuring.
The removal of these co sts will co ntribute to a healthy financial
o utlo o k fo r CVS in the years ahead.
While 2001 was a challenging year, o ur histo ry is reassuring and
o ur future is bright. We o perate in a terrific gro wth industry, and we
have a so lid balance sheet to suppo rt o ur future gro wth. We will
co ntinue to aggressively enter new markets to fuel lo ng-term,
sustainable, do uble-digit earnings gro wth. We will also seek to
enhance o ur co st structure to maintain o ur edge in superio r expense
co ntro l, and we will co ntinue to invest in state-of-the-art
techno lo gy to maximize o ur efficiency.
Filling this prescriptio n fo r gro wth requires the hard
wo rk and co mmitment of o ur 107,000 asso ciates. We
were especially pro ud of ho w they ro se to the o ccasio n
in the dark ho urs o f September 11, 2001, as o ur co untry
experienced unspeakable tragedy, even offering o n-the-
gro und assistance at the disaster sites. I want to thank
each o f them for their co ntinued dedicatio n.
We also appreciate the wise co unsel of o ur Bo ard of
Directors, the stro ng leadership of o ur senio r management
team, and the suppo rt o f o ur business partners and custo mers.
We thank yo u, o ur shareho lders, fo r yo ur suppo rt, and we
lo o k fo rward to repo rting o ur future go o d health.
Tho mas M. Ryan
Chairman of the Bo ard,
Pre side nt, and Chie f Exe cutive Office r
“CVS is
a leader
in a vibrant
and gro wing
industry.”
Thomas M. Ryan
Chairman of the Bo ard,
Pre side nt, and
Chie f Exe cutive Office r