Core-Mark Expects $7.7B in 2011 Net Sales

Core-Mark Holding Company, Inc. CORE announced that it expects approximately $7.7 billion in net sales in 2011. T he Company anticipates continued penetration of the fresh product offering, increases in its vendor consolidation initiative, and market share gains. The Company also anticipates continued decline in carton volume, offset by higher cigarette taxes and manufacturer price increases. This guidance represents an increase of approximately 8% over 2010 revenue guidance of $7.1 billion and includes the incremental sales of the company's most recent acquisition. There are no extraordinarily large customer wins or losses reflected in this guidance. Management estimates its capital expenditures will total $24 million in 2011. Approximately $5 million of this expenditure will be used to consolidate an existing division into fewer buildings to better serve its expanding customer base. Another $3 million will be used to expand the Company's cooler/freezer capacity and $2 million to invest in its tri-temperature fleet and loaned equipment programs to fund its "Fresh & Vendor Consolidation" initiatives. The remainder of the capital expenditure estimate is composed predominantly of maintenance investments that would be expected in the normal course of business.