Core-Mark Holding’s profit drops to $18M in 2010 Read more: Core-Mark Holding’s profit drops to $18M in 2010 | San Francisco Business Times

Cigarette, food and candy distributor Core-Mark Holding Co. earned $900,000 in the fourth quarter ended December, down from a profit of $8.5 million in the same quarter a year earlier.
Sales rose to $1.86 billion in the quarter, up from sales of $1.65 billion in the fourth quarter of 2009.

For the year ended December, Core-Mark (NASDAQ: CORE) earned $17.7 million on sales of $7.3 billion. In 2009, the company earned $47.3 million on sales of $6.5 billion.
A $19.1 million reduction in cigarette holding gains ate into 2010 profits, as did price increases from manufacturers of the products Core-Mark distributes and other competitive pressures.
Fuel costs, to which a distributor is particularly sensitive, rose $4.6 million in 2010, though Core-Mark was able to offset them partly through improved health care and workers’ compensation costs.
Core-Mark uses 24 warehouses around the United States and Canada to distribute cigarettes, other tobacco products, food, candy and non-alcoholic drinks to convenience stores and other small shops. Cigarettes account for more than two-thirds of its sales.
It’s a fierce market, with over 300 wholesale distributors fighting for business. Core-Mark counts McLane Co., a subsidiary of Berkshire Hathaway Inc. (NYSE: BRK-A, BRK-B), as its largest competitor.