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The Walt Disney Co. reported sharply lower net earnings Tuesday because of losses at its Internet group and an accounting charge. Without those factors, earnings beat expectations as higher results from movies and theme parks offset an ad slowdown at ABC. Disney reported net income of $63 million for the three months ending Dec. 31, down 77 percent from $278 million in the same period a year ago. Much of the decline was due to a loss of $253 million in its Internet businesses and a $228 million accounting charge to comply with rules on valuing film holdings. Excluding those charges, Disney reported income of $594 million on revenues of $7.31 billion, not including its retained interest in the Walt Disney Internet Group, compared with income of $469 million the previous year on revenues of $6.82 billion. Income including losses from the Internet division rose to $341 million, or 16 cents per share, compared with $278 million, or 13 cents per share.

CVS Corp. on Tuesday announced a 12.4 percent increase in fourth-quarter earnings. The Woonsocket, R.I.-based drugstore chain credited its acquisition of a specialty pharmacy business and an expanding number of stores for the higher profit. Earnings for the period ending Dec. 30 were $209.5 million, or 51 cents per share, compared to $186.3 million, or 46 cents per share, in the same period last year. Sales rose by 5.9 percent to $5.5 billion, compared to $5.2 billion the year before. Earnings for the year jumped 17.5 percent, to $746 million, or $1.83 per share, compared to $635.1 million, or $1.55 per share in the previous fiscal year. Sales for the year were $20.1 billion, an 11 percent increase over last year's $18.1 billion. CVS leads Deerfield, Ill.-based Walgreens in terms of stores, with 4,133 in 31 states. But Walgreens leads in revenue by a slight margin with $21 billion in annual sales.

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