CST Brands Q3 Profit Rises - Update

(RTTNews) - CST Brands, Inc. (CST), a retailer of transportation fuels and convenience goods, Tuesday reported a rise in the third-quarter profit, reflecting lower costs. Revenues slightly declined and came in below analysts' estimates.

For the three months to September, the company's net income increased to $63 million or $0.83 per share, from $42 million or $0.56 per share in the previous year. Excluding certain items, adjusted earnings were $0.90 per share, while the firm posted $0.58 per share last year.

On average, seven analysts polled by Thomson-Reuters estimated earnings to be $0.57. Analysts' estimates typically exclude one-time items.

Operating revenues slightly decreased to $3.22 billion from $3.32 billion a year ago. Analysts estimated revenues of $3.27 billion for the quarter.

The company said the decrease in operating revenues was due to a drop in per gallon average selling price for the U.S. segment and sales volumes of motor fuel during the period.

In addition, a decline of $76 million due to the weakness of the Canadian dollar relative to the U.S. dollar contributed to the decrease in operating revenues.

In the U.S. segment, total operating revenues declined to $1.99 billion from $2.01 billion a year ago. Canada segment posted operating revenues of $1.23 billion, down from $1.30 billion in the preceding year.

Cost of sales fell to $2.88 billion from $3.03 billion a year earlier.

Year-to-date, the firm opened 19 new stores in the U.S. and 6 stores in Canada. It currently expects to open a total of 28 new stores in the U.S. and 10 new stores in Canada during 2014.

CST closed Monday's regular trading at $39.75.