CST Brands 2Q net income falls 60 pct
CST Brands posts 60 pct drop in 2nd-qtr net income on lower profitability from fuel sales
SAN ANTONIO (AP) -- CST Brands, which was once Valero's retail division that operated its gas stations, reported a 60 percent decline in second-quarter net income, but beat Wall Street profit and revenue expectations.
Profitability related to U.S. fuel sales after the deduction of credit card fees dropped by nearly half, largely as a result of tough comparisons to a prior year period that got a boost from extremely volatile fuel prices.
CST, based in San Antonio, was spun off by Valero in May, allowing the refiner to focus on core operations.
For the quarter ended June 30, the company earned $43 million, or 57 cents per share, down from $108 million, or $1.43 per share, in the same quarter of 2012.
Excluding a tax-related charge, the company said it posted an adjusted profit of 66 cents per share, edging out Wall Street expectations by a penny.
Revenue fell 4 percent to $3.21 billion, pulled down by a drop in the company's average domestic selling price for fuel, but that also was better than most analysts had projected.
Shares of CST Brands Inc. rose 39 cents to $33.27 in morning trading.
