Valero 2011 Annual Report Download - page 18

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18 | VALERO ENERGY CORPORATION
Our retail business posted its
most profitable year in history
with operating income of $381
million in 2011, thanks to record-
setting results in Canada and
the second-best year ever for
U.S. operations. Of the total
retail operating income for the
year, Valero’s U.S. operations
earned $213 million, and Canada
operations contributed $168 million.
Despite a tough economy, higher
fuel prices and a 3.5-percent drop in
national demand, same-store volume
at Valero’s U.S. stores performed
relatively well, down only 1.9 percent
for the year, and up 0.3 percent in the
fourth quarter. Fuel margins improved
at 14.4 cents per gallon, up from
14.0 cents per gallon the previous year.
Inside-store sales and margins rose
1.5 percent and 2.9 percent,
respectively. e stores posted strong
sales growth in most merchandise,
other than cigarette categories. We
continue to grow our private-label
food offerings, featuring more than
100 items.
We continued to invest in our assets
in 2011, spending $91 million to
build new stores in the U.S. and
remodel others, positioning us to take
advantage of expected improvements
in the economy. During 2011, in the
U.S., Valero completed six new-to-
industry stores, 85 remodels and
18 carwash upgrades, and acquired
two stores.
Our U.S. Corner Stores also achieved
record-breaking community support
campaigns, raising $2.28 million for
the Muscular Dystrophy Association
in 2011, and more than $1.9 million for
Children’s Miracle Network hospitals
in communities where Valero operates.
e retail stores additionally posted
their best safety year ever, reducing
total recordable injury rates by
21 percent, and lost-time injury rates
by 27 percent, from the previous year.
In Canada, the economy is improving,
and we continue to see growth in
demand in gasoline. Our volume
continues to be strong, with
volume per-site up 4.9 percent, and
same-store sales up 1.3 percent.
Fuel margins rose from the year
before, and remain very strong.
We continue to improve and
transform the network in Canada.
We’re closing smaller company-
operated and dealer sites, and opening
company-operated new sites – six
this year – and adding new dealers.
Valero’s U.S. operations earned
$213 million, and Canada
operations contributed $168 million.
SETTING NEW STANDARDS
FOR RETAIL EXCELLENCE
SETTING NEW STANDARDS
FOR RETAIL EXCELLENCE
18 | VALERO ENERGY CORPORATION