Marathon reports $737 million in Q3 earnings

Enon-based Speedway is one of the largest convenience store chains in the U.S. Bill Lackey/Staff

Combined ShapeCaption
Enon-based Speedway is one of the largest convenience store chains in the U.S. Bill Lackey/Staff

Marathon reported third quarter earnings today of $737 million, and executives said the company’s recent acquisition of Andeavor will drive profits in the long-term.

Marathon’s earnings were down compared to the same quarter last year, when the Findlay-based company reported earnings of $903 million. Company officials attributed the lower earnings in part to pre-tax charges of $49 million related to pension settlement and transaction costs.

The company finalized its acquisition of Andeavor, a Texas-based refining firm in early October.

Marathon is the parent company of Speedway, a convenience store chain headquartered in Enon. The company’s Speedway segment reported third quarter income of $161 million, compared to $208 million for the same quarter last year. Company officials said the decrease was primarily related to higher operating expenses and lower light gas margins.

Expenses increased $28 million, primarily due to higher labor and benefits costs.

MPC has begun the process of converting the Andeavor company-owned-and-operated stores to the Speedway brand. Since the closing of the transaction on Oct. 1, roughly 90 sites in the St. Paul and Minneapolis markets have been converted and the company expects to complete approximately 200 sites in total by the end of 2018, according to information from the company.

Company officials recently told the News-Sun they are considering a roughly $48 million expansion of the company's headquarters in Enon as part of the acquisition of Andeavor. The company has said it plans to create about 200 new jobs as part of the expansion, although Speedway is also considering two undisclosed locations outside Ohio.

Statewide, Speedway employs about 1,090 full-time workers, excluding retail store and field support employees, according to documents provided to the county as part of the request. Speedway’s existing payroll is listed at just shy of $73 million annually.

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