CST Brands, Inc (CST) has reported a 28 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $18 million, or $0.23 a share in the quarter, compared with $25 million, or $0.34 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $18 million, or $0.23 a share compared with $42 million or $0.55 a share, a year ago. Revenue during the quarter grew 12.67 percent to $2,374 million from $2,107 million in the previous year period. Gross margin for the quarter contracted 139 basis points over the previous year period to 12.85 percent. Total expenses were 98.36 percent of quarterly revenues, up from 97.48 percent for the same period last year. That has resulted in a contraction of 87 basis points in operating margin to 1.64 percent.
Operating income for the quarter was $39 million, compared with $53 million in the previous year period.
Kim Lubel, chairman and chief executive officer of CST Brands, said, "2016 was a year of significant growth and change for CST, beginning with the Flash Foods acquisition in February, the completion of 50 new-to-industry stores across the U.S. and Canada, and our shareholder approval of the pending merger with Circle K Stores, Inc., a wholly-owned subsidiary of Alimentation Couche-Tard Inc. The merger is on track to close during the second quarter 2017. I am grateful to the entire CST team for their continued commitment to the Company and to our mission to Delight More Customers Every Day."
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