Pantry Q4 profit drops on declining gas prices

Cary, N.C. Pantry said Wednesday that declining gasoline prices pushed its profit 42% lower in the fiscal fourth quarter.

The company made $13.3 million for the period ended Sept. 24, down from $22.9 million a year earlier.

Sales slipped 28% to $1.82 billion from $2.51 billion on lower gas sales, which were pressured by declining gas prices.

For the year, profit soared 86% to $59.1 million from $31.8 million last year.

Annual sales slid 29% to $6.39 billion from $9 billion on lower gasoline revenue.

CFO Frank Paci said that the company's above-average gas margin and cost-control efforts helped it report increased annual earnings despite higher tobacco taxes and the ongoing economic downturn.