UPDATE:

Champaign County missing sailor: ‘A lot of people’ care about him

Marathon reports $855 million in earnings in second quarter

Speedway move forward with Hess acquisition.


Marathon Petroleum Corporation announced $855 in earnings in the second quarter of this year, and officials said Speedway is moving ahead with its $2.8 billion acquisition of Hess Retail Holdings.

Speedway, based in Enon, is a subsidiary of Marathon. Speedway officials recently announced the company would create 350 new jobs in Springfield and spend $9.1 million to purchase an office building at the NextEdge Applied Research Technology Park. The company also has plans to renovate its current headquarters in Enon.

Speedway recently received notice that the Federal Trade Commission has finished its review of the $2.8 billion acquisition of Hess, said Gery Heminger, CEO of Marathon. The deal, expected to close this fall, will provide long-term value to the company, he said. Speedway will grow to more than 2,700 stores and expand its footprint from nine to 23 states.

Overall, Speedway earned about $93 million from operations in the second quarter of this year, compared to $123 million at the same time last year. In part, the decrease in earnings in the Speedway segment was due to higher operating expenses because of an increase in the number of stores compared to last year.

However, Speedway’s merchandise sales, as well as the profit margin it earned on those sales, was higher than the same time last year.

Marathon’s overall earnings of $855 million, or $2.95 per share, is a significant gain from the second quarter of last year, when the company earned $593 million, or about $1.83 per share.

“We had an outstanding quarter, with our focus on top-tier operational performance across the MPC refining, marketing and transportation system continuing to yield excellent results,” Heminger said.

Earlier this year, Speedway announced it would spend $2.8 billion to acquire Hess Retail Holdings, one of the largest convenience store chains on the east coast. The deal will roughly double Speedway’s size, and expand its footprint along the east coast.

The company already has about 800 employees at its headquarters. Speedway will also receive tax incentives from Ohio as part of its pledge to create 350 new jobs. In return, the company pledged to create about $14 million in new annual payroll and must maintain a presence in Springfield for 13 years.



Reader Comments ...


Next Up in Business

Miamisburg company creates technology to enhance college recruitment
Miamisburg company creates technology to enhance college recruitment

Miamisburg company Think Patented is expanding to add a new division focused on the higher education marketplace. The graphic communication and printing company has established a new division called Quanta, which will be an automated communications platform developed for admissions recruitment and alumni fundraising and event promotion. Quanta&rsquo...
5 things you need to know about Walmart’s new partnership with Uber
5 things you need to know about Walmart’s new partnership with Uber

Walmart and ride-sharing powerhouse Uber are teaming up to bring customers a new kind of grocery home delivery service. Walmart began testing grocery delivery through crowd-sourced services like Uber last year. Now, the chain retailer is expanding its grocery delivery pilot in two more markets — Orlando, Fla. and Dallas, Texas. Here’s what...
Regulators weigh new air pollution fees for Dayton-area companies
Regulators weigh new air pollution fees for Dayton-area companies

Public health and clean-air regulars are considering new fees for local manufacturers and utilities they oversee. One proposed fee would impose up to a total of $27,250 in new annual charges to Dayton Power and Light, according to numbers provided by Public Health-Dayton and Montgomery County. This summer, the Public Health department began notifying...
Jobless rates across region on the rise
Jobless rates across region on the rise

Regional unemployment rates for area counties and cities edged up in July 2017 compared to last July, according to new state numbers released Tuesday. Montgomery County’s July jobless rate of 5.2 percent was a bit higher than the 4.9 percent recorded in July 2016, according to the Ohio Department of Job and Family Services. However, the county...
Target to introduce 3 new brands in August, September
Target to introduce 3 new brands in August, September

Target is launching three new brands in August and September, including two new clothing lines and a home decor brand. The Minneapolis-based retailer is looking to bump up sales by introducing new brands that can’t be found on competing online stores. A New Day, a women’s clothing brand, and the new men’s brand Goodfellow & Co. will...
More Stories