Walgreen CFO's departure due to $1 billion forecasting error : WSJ

Wed Aug 20, 2014 11:46am EDT
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(Reuters) - Drugstore retailer Walgreen Co's WAG.N Chief Financial Officer, Wade Miquelon, and another top executive lost their jobs after a $1 billion forecasting error in the company's Medicare-related business, the Wall Street Journal reported.

Walgreen named Kraft Foods Group Inc's KRFT.O former CFO, Timothy McLevish, to replace Miquelon — its CFO of six years — on Aug. 4.

Miquelon last month cut by $1.1 billion a forecast of $8.5 billion in pharmacy unit earnings for the year ending August 2016 that he had made at an April board meeting, the journal said. (on.wsj.com/VEh0xC)

Miquelon's departure was due to his transitioning to newer opportunities, Walgreen told Reuters in an email.

The company had earlier said Miquelon would continue as advisor to assist it with a strategic partnership with Alliance Boots Holding Ltd [ABN.UL].

The newspaper report said the forecast error also led to the departure of Kermit Crawford, Walgreen's president of pharmacy, health and wellness.

Crawford announced his retirement last month after 31 years with the company.

He will continue as an advisor, and moves forward to pursue new opportunities outside, Walgreen said.

The forecasting error was based partly on contracts to sell drugs under Medicare, WSJ said.   Continued...

A Walgreens logo is seen outside its store in New York City, September 18, 2013. REUTERS/Mike Segar