Casey's General Stores Inc. said that its earnings dropped 3.1 percent in its last quarter, in part because of lower fuel prices.
The Ankeny, Iowa-based chain of convenience stores and gas-station operator reported reported profit of $38.1 million, or 97 cents per share for the quarter that ended on Jan. 31. That's down from $39.3 million or $1.01 a share in the previous year.
Revenue fell 6.3 percent to $1.57 billion.
"Cigarette sales continue to benefit from lower retail fuel prices, and sales in the entire category performed well in the third quarter," said Chairman and CEO Robert J. Myers. "Margin has been slightly impacted by the increased contribution of cigarettes, and performed in line with prior year's third quarter."
Casey's has two stores in Rochester, as well as stores in Stewartville, Oronoco, Dodge Center, Mantorville, Hayfield, Spring Valley and West Concord.
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The company reported an increase of 1.6 percent in gasoline sales volume at established stores. However, the profit margin on fuel, excluding credit-card fees, dropped to 18.1 cents per gallon from 22 cents a gallon.
As a result, total fuel sales revenue dropped 16 percent to $888.7 million.
Low fuel prices benefitted the cigarette sales and other grocery and merchandise business, Casey's reported. Prepared food along with some other segments got a boost from the lower cost of cheese. At established stores, revenue from grocery sales got a 7.1 percent boost.
Casey's annual goal is to build or acquire 75 to 113 stores, replace 10 existing locations and complete 100 major remodels, the report says. As of the end of the third fiscal quarter, the it completed 31 new-store constructions, three store acquisitions, 11 replacements and 60 major remodels.
