San Antonio – Motor fuel and convenience store operator CST Brands Inc. reported net income of $32 million in the second quarter of fiscal 2014, down 22% from $41 million in the second quarter of the prior fiscal year. Until May 1, 2013, CST was still a wholly owned subsidiary of Valero and, as such, second quarter 2013 results do not include all of the expenses associated with being a public company.
CST currently expects to build 30 new stores in the U.S. and eight new stores in Canada during 2014. These new stores provide a much larger footprint, more product variety and enhanced offerings such as food service. Year to date, CST has opened 12 new stores in the U.S., and two stores in Canada.
Operating revenues rose 3% to $3.3 billion, from $3.2 billion.
“We experienced a challenging fuel environment during the second quarter, especially in the U.S., as crude oil and wholesale motor fuel prices continued this steady rise,” said Kim Bowers, chairman & CEO of CST Brands. “However, the in-store business remained strong with further improvements in merchandise sales and merchandise margins.”