Walgreen fiscal 1Q profit sinks nearly 26 pct

Walgreen's fiscal first-quarter earnings sank nearly 26 percent as costs tied to a couple big deals and Superstorm Sandy helped put a bigger-than-expected dent in the drugstore chain's performance.
CEO Greg Wasson told analysts he saw the quarter as a "turning point" for the Deerfield, Ill., company, which has been working to recapture customers it lost during a contract dispute with Express Scripts Holding Co. But investors didn't buy that message at least initially, as the stock fell deeper than broader market declines in Friday trading.
Walgreen Co. spent $4 billion in cash earlier this year to buy a stake in Alliance Boots, a Swiss company that runs the largest drugstore chain in the United Kingdom. It also spent $438 million on a drugstore chain focused on the mid-South under the USA Drug, Super D Drug and Med-X names.
Costs tied to those deals totaled $23 million in the quarter, and Walgreen said it only counted a small portion of the gains it received from Alliance Boots. It is reporting those gains a quarter after they occur to address audit and regulatory requirements.
The storm system that swept up the East Coast in late October also cost $24 million in the quarter, as it forced Walgreen to temporarily close hundreds of stores.
Overall, Walgreen earned $413 million, or 43 cents per share, in the three months that ended Nov. 30. That compares with net income of $554 million, or 63 cents per share, a year ago. Walgreen said earlier this month revenue fell nearly 5 percent to $17.34 billion.
Excluding one-time costs, adjusted earnings were 58 cents per share.
Analysts forecast, on average, earnings of 70 cents per share, according to FactSet.
Shares dropped 3.3 percent, or $1.24, to close at $36.31 Friday, while the Standard & Poor's 500 index fell 1 percent.
Walgreen runs more than 8,000 drugstores in all 50 states as the nation's largest drugstore chain. The company's revenue has slumped through 2012 after it started the year stuck in a contract squabble with Express Scripts, for which it fills prescriptions.
The companies had let a contract between them expire last December, and their new agreement didn't start until September. The split meant many Express Scripts customers migrated to new drugstores for their prescriptions.
Walgreen is trying to bring those customers back, but competitors like CVS Caremark Corp. and Rite Aid Corp. are pushing aggressively to keep them.
Walgreen said prescriptions filled at stores open at least a year fell nearly 5 percent in the quarter, a smaller decrease than the 8 percent drop it reported in the previous quarter. The drugstore chain saw that improvement as a sign that customers are returning.
"We think we can redeem significant portion of these customers over time," Wasson said.
Walgreen said prescription revenue from stores open at least a year fell 11.3 percent, while revenue from the front end, or rest of the store, dropped 2 percent. Revenue from stores open at least a year is considered a key indicator of retailer health because it excludes stores that recently opened or closed.
Generic drugs have squeezed revenue for Walgreen and other drugstores this year because they are cheaper than brand-name drugs. But they help profitability because they come with a wider margin between the cost for the pharmacy to purchase the drugs and the reimbursement it receives.
Walgreen launched a customer loyalty program called Balance Rewards during the quarter. It allows shoppers to gain points at both Walgreen and Duane Reade stores and for online purchases that translate into cash rewards they can then use at the stores.
Walgreen executives said the program will encourage customers to visit their stores more frequently and to buy more.
"We now have a new kind of currency in place that will help drive our front-end business," Wasson said.

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Nigeria's Dangote Cement expects 38 pct rise in Q1 profit

LAGOS (Reuters) - Nigeria's biggest listed company, Dangote Cement, expects pretax profit to rise 38.9 percent year-on-year to 42.09 billion naira in the first three months of next year, it said in a filing with the Nigerian Stock Exchange.
Dangote Cement, Nigeria's biggest cement producer, said it expected turnover of around 81.6 billion naira in the first quarter, compared with 64.1 billion naira it achieved in the same period in 2012.
The company which is majority owned by billionaire tycoon Aliko Dangote earlier this month shut down a fifth of its production capacity because of a glut in the market caused by imported cement from Asia.
It is yet to release its 2012 full year results.

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Falklands again? Why Argentina's Kirchner keeps pushing the issue with Britain.

Argentine President Cristina Fernández de Kirchner relaunched her offensive over the Falkland Islands today, a move that coincides with the 180th anniversary of Britain’s allegedly illegal usurpation of the South Atlantic archipelago.
President Kirchner published an open letter to British Prime Minister David Cameron in British newspapers imploring him to respect a United Nations resolution that calls on the two countries to negotiate sovereignty of the Malvinas, the name for the islands in Spanish.
Britain has repeatedly refused to enter into talks and a spokesman for Mr. Cameron responded by saying he will “do everything to protect the interests of the islanders.”
But Kirchner's move forms part of a broader leadership pattern that has seen the nationalist president take on so-called vulture funds, demonize the International Monetary Fund, and echo Hugo Chávez’s anti-neocolonial discourse.
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'NATIONAL AND POPULAR'
Though Britain may take the view that Kirchner is beating a dead horse, the Falklands are a long-standing national cause for Argentina and are written into its constitution. Today's letter represents what are described here in Argentina as "Nac & Pop" policies.
"Nac & Pop" stands for national and popular, the way Kirchner defines her government. She casts reclaiming the Falklands, over which Britain and Argentina fought a short war in 1982, as a South American struggle against neocolonialism.
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Britain recently named a slice of Antarctica over which Argentina also has a claim "Queen Elizabeth Land," a move branded by a source at the Argentine presidential palace as “provocative and childish.”
“If it occurs to the British Empire to attack the Falklands, Argentina won’t be alone this time,” Venezuelan President Hugo Chávez said last year. With President Chávez’s future uncertain due to recent health concerns, Kirchner could be trying to position herself as the leader who replaces him as the resounding voice of the South American left.
Kirchner also made a stand over the Falklands at the UN’s decolonization committee last year, and sanctioned a controversial TV commercial showing an Argentine field hockey player training for last summer’s London Olympics in Port Stanley, the islands’ capital.
The populist methods sit well among her supporters, who parade “The Malvinas are Argentine” flags at government rallies. And given that Kirchner's approval rating has dipped to roughly 35 percent – a decline of about 30 percent – in opinion polls since her reelection in October 2011, playing the Falklands card is viewed by some analysts as a way to halt that slide.
BEYOND THE FALKLAND ISLANDS
Aside from the Falklands, Kirchner’s debt reduction plan – accompanied by interventionist economic policy – and push for social inclusion are the pillars of her national and popular policies.
Next week, the Fragata Libertad – a ship embargoed in Ghana by an American-based holdout creditor that is demanding payment after having rejected debt exchanges on the back of Argentina’s 2002 default – will arrive at Mar del Plata, a city in Buenos Aires province.
Kirchner will be there to receive it. In her bid to reestablish Argentina’s economic sovereignty, she accused an American judge of “judicial colonialism” after he recently ruled that the holdout creditors should be paid.
The economy and the Falklands are both essential to Kirchner’s "Nac & Pop" strategy, and are likely to continue to be used for political gain.

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Libyan cop in Benghazi kidnapped

Abdelsalam al-Mahdawi, the head of Benghazi's criminal investigation department, was kidnapped on his way to work today by gunmen at an intersection in Libya's second largest city.
Benghazi was the heart of the uprising against Muammar Qaddafi in 2011, and since then it has failed to bring the militias that fought on the side of the revolution – some Islamist, some not – under any kind of government control. They remain armed and often a law unto themselves in the city. Criminal gangs, spawned from militias, are also at work.
The list of potential suspects is long, particularly since Mr. Mahdawi's personal background isn't immediately clear. Was he someone who served Mr. Qaddafi's regime at one point, and is being targeted for revenge? Could it be a personal or family dispute? Could his investigations of militias and/or criminals be the reason for his kidnapping? A simple matter of kidnap-for-ransom? All are possible.
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But what's likely is that sorting out what's happened to him will be confusing, subject to completing claims, and difficult for any neutral observer trying to get at the truth to figure out. That's been the pattern in violent incidents in Benghazi not just since the war ended, but before.
The attack on the US facility in Benghazi in September that left Ambassador Chris Stevens and three other Americans dead is still not fully understood. Meanwhile, today's assault is the second attack on a senior police official in Benghazi since November, when Benghazi police chief Farraj al-Dursi was assassinated outside his house. Mr. Dursi, who served under Qaddafi's government, was appointed police chief during a shuffle of security in the city after the attack on the Americans in September.
One long-standing murder in Benghazi is taking a troubling turn.
Abdel Fateh Younes, a commander of rebel forces, was abducted and murdered in the city in July 2011. Gen. Younes defected from his long-standing stalwart support of Qaddafi that February and was abducted after being called back from the front of that civil war. What happened next remains uncertain.
Shortly after his murder, Mustapha Abdel Jalil, then head of Libya's Transitional National Council and himself a former minister in Qaddafi's government, insisted Younes was killed by agents of Qaddafi. Others in the rebel government in Benghazi said Younes' arrest had been sought on suspicion he was working as a double agent for Qaddafi. In the immediate aftermath, a civil war within a civil war in Benghazi looked possible, with angry loyalists of Younes demanding justice.
Mr. Jalil was a hero of the revolution for being one of the earliest defectors from Qaddafi's regime and for successfully navigating international intrigue and competing agendas domestically in winning NATO support for the rebellion. In December, he was threatened with a military trial for allegedly ordering the murder of Younes. Among the charges against Jalil were "undermining national unity."
Is there good reason to suspect him? It's unclear, as with so much else in Libya these days. The proposal to try Jalil in a military court, however, was clearly worrying. On Dec. 19, the military tribunal organized to try Jalil resigned and the case was thrown back to prosecutors. To top it all, one of the judges investigating Jalil was murdered in Benghazi last year.
What does all this mean? Hard to say. But the ongoing chaos and bloodshed, at high political levels in Libya, is not a positive sign.

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Amid bloodshed and chaos, Syrian wages a war for neutral reporting

While Syria's state-run news outlets run a steady stream of reports about "terrorists" and international conspiracies against President Bashar al-Assad, opposition activists roll out their own endless barrage of footage highlighting atrocities and destruction by regime forces, with little in the way of context.
With media access difficult or impossible in most of the country and no tradition of balanced journalism, reliable, objective coverage of Syria is scarce. Cairo-based Syrian activist and media entrepreneur Rami Jarrah, on the cusp of launching a radio station inside Syria, is trying to fix that – but he is starting from scratch. By providing Syrians with rational, fair reporting, he hopes to help them avoid the worst of the uncertainty in the aftermath of this conflict – now in its 22nd month – when it ends.
"When someone comes in and wants to work with us, and wants to do it to help Syria, you have to convince them that the way you do that is by being neutral," says Mr. Jarrah during an interview at the Cairo headquarters of New Media Association (ANA), which he co-directs.
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One of the major problems with Syrian troops, he insists, is not that most of them are "criminals," but that they simply "don’t know what’s going on" – and the same could be said of many of those in the extreme opposition.
Meanwhile, the international community is foundering amid attempts to understand what is happening on the ground. Because reporters have an easier time accessing opposition sources and visiting opposition-controlled areas, international coverage of Syria has been skewed, Jarrah argues.
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"You aren’t seeing any media coverage of Damascus and Latakia," where the government is still strong, both because reporters are not granted access and because "those who support Assad think they should not speak to journalists, that the media is trying to weaken the country," he says.
And coverage of the opposition isn't very fair either, he says, claiming that Western reporters "are only going in with the extreme opposition," such as Al Qaeda-linked groups like Jabhat al-Nusra, which the US recently designated a terrorist organization. Jarrah says reports about the prevalence of such groups are "over-exaggerated" because they sell more copy.
PRISON, PSEUDONYMS, AND FLIGHT
Born in Cyprus to Syrian dissident parents and raised in London, Jarrah was working toward a degree in journalism in Dubai when he visited Syria for the first time in 2004. He was arrested upon landing, accused of espionage, slapped with a three-year travel ban, and forced to remain in a country where he was initially unable even to read the language, although he spoke it fluently.
During the initial protests in early 2011, he was beaten, tortured, and released only after admitting to being a "terrorist." Left jobless after refusing to attend a pro-government rally, he became well known in the dissident community under the pseudonym Alexander Page for getting information to Western media outlets through his blog. His fluent English, training in journalism, anti-regime stance, and contacts all led to frequent requests for interviews in Western media. He granted them, but never revealed his real name.
In October 2011, Jarrah was tipped off that the pseudonym had been traced to him and fled the country with his wife and young daughter through Jordan to Cairo, where he has been since, working to get media equipment into Syria and get reliable information out. Last month, Canadian Journalists for Free Expression awarded him the 2012 International Press Freedom Award for his work supporting a network of independent journalists in Syria.
Now he is in Cairo, getting a media organization off the ground that he hopes will serve as a source for balanced reporting by Syrians and for Syrians. Much bloodshed could have been avoided, but much can still be saved, if appeals are made to Syrians’ critical thinking abilities, not their fears or sectarian and religious affiliations, he says – and objective reporting can do that.
NO AGENDA OTHER THAN OBJECTIVITY
Jarrah has high hopes for Radio ANA. A trial version is already available online and it will be available on satellite in late January, although the official launch isn't until June 10. The station will broadcast out of Aleppo’s Bustan Al Qasr district and eastern Damascus.
Radio ANA has 16 reporters inside Syria, all of whom his organization has worked with over the past year and trained in technical skills – six in Damascus and one or more in other major cities. It also has a wider network of hundreds of citizen journalists it can tap for further information and on-the-ground coverage of events in cities other than those where staff reporters live.
The Cairo staff of the organization, who come from all across Syria, make every possible effort to verify the information from the citizen journalists by cross-checking information and paying close attention to location identifiers like dialects and landmarks spotted in videos, Jarrah says.
Although ANA intends to continue providing reporting on Syria to the international community, Radio ANA is setting out to be the first Syrian non-regime radio station broadcasting from within Syria without a particular agenda – other than objectivity. The ultimate aim, as Jattah stressed throughout the interview, is to produce an informed Syrian population, necessary if the country is to be rebuilt with the freedoms for which the opposition is fighting.

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Good Taliban, Bad Taliban? Pakistani commander's killing exposes blurry lines

The US drone killing of Pakistani Taliban commander Maulvi Nazir threatens to unleash new anti-government violence against the country’s weak government or civilian targets, and expose fractures in the country’s military and security forces, analysts say.
Mr. Nazir was traveling in a car in troubled South Waziristan, bordering Afghanistan, Thursday, when his vehicle was hit by a missile, according to media reports. He and six other Pakistanis believed to be militants were killed.
The attacks highlight the convoluted interconnections among insurgent factions in Pakistan, some of whom are focused on fighting US forces in Afghanistan, others of whom seek to topple Pakistan’s government. Still other groups target Indian forces. Many of the factions are backed or financed by military and intelligence agencies in Pakistan, who have differing agendas themselves.
The killing was confirmed by Pakistani intelligence officials in the nearby city of Peshawar who spoke on condition of anonymity since they were not authorized to speak to the press.
Mr. Nazir, who survived a suicide attack in November reputedly organized by rival Taliban commanders, was considered to be pro-government, a rare stance among Pakistani Taliban. He had agreed in the past to restrain his fighters from targeting Pakistani government forces, instead focusing efforts on the Taliban-led anti-US insurgency in Afghanistan. That had led some to label him a “good" Taliban.
With his killing, however, some analysts say his successor and followers may now turn their guns on civilian and military targets within Pakistan.
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“Such [drone] attacks are not the first ones to have occurred and they have definitely created rifts between the Pakistani military and the likes of Maulvi Nazir-led Taliban,” says Mehreen Zahra Malik, an Islamabad-based columnist who recently visited Wana, the town in South Waziristan where Nazir was based.
Adding to the problem is widespread outrage among most Pakistanis toward US drone strikes. The government and military have harnessed that anger to pressure Washington. The “Good Taliban” forces increasingly suspect these attacks are being carried out with the consent of the Pakistani security establishment, Ms. Malik says.
“There is nothing to say the 'Good Taliban' won't also turn their guns on the Pakistani state in the coming days, which is definitely something the Pakistan Army would like to avoid,” Malik adds.
Other experts believe targeting Nazir could be part of a larger strategic alliance between Pakistan and the US, a relationship that has been strained by the 2011 secret US raid that killed Osama bin Laden without the knowledge of the government. The 2011 “Salala Incident” in which NATO aircraft killed 24 Pakistani soldiers at a post on the Afghan border also prompted anger toward Washington.
“By taking out the leadership of those Taliban based in Pakistan and fighting in Afghanistan like Maulvi Nazir, both countries can increase the pressure on the Taliban for talks because they will be in a stronger position,” says Ayesha Siddiqa, a defense analyst who has authored two books on the Pakistani military.
Some fear the drone attacks may end up backfiring.
“This drone attack belies the conventional wisdom... Why will the US target a militant close to the Afghan Taliban and antagonize those it wants to bring on the table for peace talks in?” says Fahd Husain, a noted columnist for the several leading Islamabad newspapers.

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Could gang-rape protests mark beginning of an age of activism for India?

The large-scale protests triggered by the gang rape of a 23-year-old student in New Delhi has renewed debate over the rise of a new urban middle-class activism in India.

The strength and longevity of those protests, sustained as they were over several weeks and undeterred by police water cannons and teargas, took many by surprise. Student activism has generally been on the decline since the early 1990s, when the economy was liberalized, and the Indian urban middle-class is notorious for itspolitical apathy.

But the recent protests, coming on top of 2011’s massive anticorruption movement led by Gandhian activist Anna Hazare, has some commentators heralding a new social mobilization – one that is fueled by frustration with what is seen as an increasingly corrupt and out-of-touch political system, energized by a new generation of youth, and aided by both old and new media.

“A generation has come of age that has [previously] been linked to a class and an ethos that was supremely indifferent to anything but their own self-interest – consumption and making money,” says Aditya Nigam, a political scientist and senior fellow at the Centre for the Study of Developing Societies in New Delhi. He points out that this generation grew up in the 1990s, a period of economic liberalization that saw rising prosperity but also increased corruption – there have been several high-profile scams in recent years – that was perpetrated with impunity.

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Demographics are certainly a factor in the recent protests. More Indians are entering the middle class– anywhere between 70 million and 150 million, depending on the definition of middle class – and more now live in the cities.

They form the spine of support for the Aam Aadmi Party, launched in October by Hazare’s former deputy Arvind Kejriwal. This segment is believed to have contributed to the recent reelection of controversial right-wing leader Narendra Modi, who courted what he called the “neo-middle-class” in the state of Gujarat.

There is a “new force on the Indian political landscape,” wrote a commentator in a leading business daily. “The middle class has sensed that its period of political irrelevance is over, with its numbers growing at a phenomenal pace.”

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India’s population is also disproportionately young, a feature that is associated with both increased productivity and social unrest. The median age in India is now 25, while the median age of a national politician is closer to 60 – a generational and cultural gap that has been on display in the past few weeks as political and civic leaders have blamed sexual violence on everything from English education to short skirts.

The generational shift is evident to Arjun Bali, a 42-year-old filmmaker who turned up with his toddler for a women’s rights protest in an upscale neighborhood in Mumbai on New Year’s Day. Mr. Bali said he was no stranger to protests – he had attended many as a college student. “The generationborn in the 1980s, they don’t know have the baggage or the fears” from, say, the Emergency, he says, referring to the period in the early 1970s when then Prime Minister Indira Gandhi suspended elections and suppressed civil liberties.

Another young protester, Pallavi Srivastava, personifies that difference. Like generations of middle-class Indians before her, the urban planner left the country to study in the United States in 2003, but unlike her predecessors, she chose to return after eight years because of improved economic opportunities and the chance to be a part of a society in the making. “Things are in flux here,” she says, holding a placard that reads, ‘I pledge to use public transport.’ “There’s a lot of energy, but what this nation is going to be, nobody knows yet.”

ROLE OF THE MEDIA

The protest she attended was organized through Facebook. Social media has been instrumental in mobilizing young outrage – Internet penetration is relatively low in India, but the bulk of the 135 million people online are under the age of 35. Still, the old media, especially English television news channels, have also played their part with wall-to-wall coverage: By contrast, a rally Tuesday of more than 1,000 slum-dwellers protesting the demolition of their homes as well as corruption in a government housing plan barely got any coverage.

In earlier years, Indian television largely presented the public as a mob, says Arvind Rajgopal, a media studies professor at New York University. “There was always this fear of law and order being violated but now the public is assumed to be on the side of the good,” he says.

“There is a simmering sense of injustice that the media is building on,” he adds, empowering "the sense that moral authority lies outside the political institutions.”

India has a history of effective social movements – the anti-Narmada dam movement of the 1980s, for example – but these have been mass movements dominated by the left.

The new activism isn’t allied to any political party, and whether it will be sustainable or effective without a unifying agenda or without reaching across caste and class barriers remains unclear.

Some have already criticized the recent protests for being incoherent and even displaying an authoritarian impulse – a charge also levied at the Anna Hazare movement.

“Their demands are very basic and undemocratic, they want immediate justice and have no understanding of democratic processes and constitutional requirements,” says Flavia Agnes, a lawyer and veteran women’s right activist with the group Majlis.

Those demands have included punishing rape with castration or the death penalty and fast track courts to try those cases – measures that women’s groups don’t necessarily support. Death penalties may deter reporting of the crime – most rapes go unreported, it is believed – and may cause the rapist to murder the victim, say many women’s activists. Ms. Agnes also opposes fast track courts, which she says is more likely to lead to “fast track acquittals.”

Only about 25 percent of rape cases resulted in convictions in 2010, and conviction rates were less than 10 percent in some states last year.

“What is needed are nonsensational, small measures,” says Agnes. “Getting women better access to the police station, getting the medical reports done sensitively.”

POTENTIAL TO BE TRANSFORMATIVE

Still, observers like Nigam believe the new movement has the potential to be transformative, even if it is temporary. Unlike the upper-caste youth protests of the late 1980s against affirmative action for lower castes in colleges, the present movement is not about “defending privilege” so much as “more general issues of governance and what is generally perceived to be a collapse of the rule of law and mechanisms of justice,” he notes. “The middle class is no homogenous and unchanging entity.”

Even Agnes believes that the protests are largely positive. Her group’s support program for rape victims has gotten new attention and a senior police officer recently called her for ideas to encourage women to walk into his police stations.

Meanwhile, one state party has pledged not to field candidates with rape charges – a third of national legislators have criminal charges against them, including two with rape charges.

“For some reason, this rape has caught the national imagination,” Agnes says. “If that means the government and police cannot ignore this issue anymore, that’s a good thing.”

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