7-Eleven Buys ATMs from American Express

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7-Eleven Buys ATMs from American Express

08/18/2004
DALLAS -- 7-Eleven Inc. purchased American Express Co.'s automated teller machines in its stores for about $44 million, prompting 7-Eleven to raise its 2004 core earnings guidance, reported the Dow Jones Business News.

"ATM services are an important offering for the convenience customer, and we believe this acquisition will complement our strategy to accelerate growth in the area of financial services," 7-Eleven's president and CEO Jim Keyes said in a statement.

In a press release Tuesday, 7-Eleven said it anticipates full-year earnings of 90 cents to 94 cents per share before non-operating items. The company expects the acquisition to add 2 cents per share to its prior outlook.

For 2003, the convenience store chain's core earnings totaled $88.8 million, or 78 cents per share.

7-Eleven also increased its 2004 capital spending guidance to a range of $360 million to $390 million from its previous forecast of $345 million to $375 million. The company's capital spending totaled $338 million in 2003.