CST Brands 3rd-quarter net income leaps 71 percent

Published on NewsOK Modified: November 4, 2013 at 8:03 am •  Published: November 4, 2013
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SAN ANTONIO (AP) — Gas station operator CST Brands' third-quarter net income jumped 71 percent as the company opened new stores and held the line on costs.

The company, which was spun off by Valero Energy Corp. in May, said Monday that its net income rose to $41 million, or 55 cents per share, for the three months ended Sept. 30. That compared with $24 million, or 31 cents per share, last year.

Excluding an asset impairment charge, net income was 57 cents per share. .

Revenue fell 2 percent to $3.32 billion, from $3.38 billion in the 2012 third quarter. Revenue in the U.S. edged down due to lower per-gallon average selling price and fewer gallons sold. Analysts, on average, expected revenue of $3.34 billion, according to FactSet.

CST opened eight stores in the U.S. and two in Canada during the quarter. Total operating expenses rose 6 percent to $222 million.

"We continue to make great strides as a separate, publicly-traded company, working on key initiatives such as establishing our culture, further developing our brand, and reducing and eliminating the transition services being provided by our former parent company," said CEO Kim Bowers.

CST shares ended Friday at $33.01, up about 9 cents since their debut.