Pantry records Q3 profit slide

Cary, N.C. Pantry said Tuesday that its fiscal third-quarter profit plunged mostly due to a sharp decline in gasoline prices. Profit for the quarter ended June 25 slid to $43,000 from $10.7 million in the year-ago period.

Quarterly sales slid 34% to $1.63 billion from $2.47 billion, on declining gasoline revenue. Total gasoline revenues fell 41.2%, primarily due to a 40.4% year-over-year decline in the average retail price per gallon, to $2.21, the company said. Chairman and CEO Peter J. Sodini said, “During the quarter we experienced a weak gas margin due to a sharp rise in wholesale gasoline costs. … Third-quarter results were also affected by the ongoing economic softness in our markets and by higher tobacco excise taxes."

For the first nine months of fiscal 2009, net income was $45.8 million, compared with $8.8 million a year ago.

During the quarter, the company completed the acquisition from Herndon Oil Corp. of 38 convenience stores.