European Stars and Stripes (Newspaper) - March 16, 1990, Darmstadt, Hesse                                Page 8 a a the stars and stripes Friday March 16,1990 a stars amp stripes special report Afes funds give Europe Good return by Steve Taylor Munich Bureau Munich West Germany a for every Dollar cafes Europe made and sent to the United states in 1988, $ 1.45 was returned to the continent and spent on new exchanges fast food restaurants Bowling alleys and Community recreation programs. The largess of the cafes and military budgeting systems meant however. That military communities in the United states and elsewhere were getting less Money Back than they contributed through cafes profits. Earnings from the $6.8 billion a year cafes Goliath Are distributed in two ways in construction Money for new stores renovations and equipment and in a a dividends to army and air Force morale welfare and recreation programs. Tracking the Money that the Exchange service in Europe gives to military mar activities is a nightmarish Maze of accounting systems operating budgets and differing fiscal years. Cafes Europe contributes to mar activities through its Headquarters in Dallas. For the year that ended Jan. 23, 1989, the last year for which final figures Are available the european Exchange service contributed $77 million to worldwide earnings. More than half went to morale and welfare programs intended for . However once the Exchange service in Dallas writes a Check to the army and air Force for mar accounts the Money is lumped in with other funds said . Air forces Europe spokesman capt. De Worley. With different accounting systems and different budgeting periods used by cafes and the two services tracking the Money Back to Europe becomes a very very involved a said Andy Terrenzi a Cost analyst with the army in  much so that not everyone in the army agrees on How much reaches Europe. For 1988, substantially different sets of figures were offered by Usa eur by cafes Europe and by the Central mar Agency in Alexandria a. The stars and stripes is using the statistics provided by the . Army Community and family support Center in Virginia because it is the 1988 cafes Money when it comes to sharing the worldwide earnings of the army and air Force Exchange service the military takes extra care of the troops in Europe giving Back far More than it gets. In 1988, cafes reported earnings of $214 million of which $121 million was sent to services for morale welfare and recreation programs. The army and air Force put $46.8 million of that into Europe. Cafes kept the other $93 million for construction of new exchanges and other capital improvements. More than two thirds of that went to Europe. $77 million cafes Europe earnings i the $77 million from Europe is combined with $137 million of other cafes earnings in the Dallas Headquarters $111 .5 million returns to Europe $46.8 million for mar $64.7 million for cafes k construction renovations equipment a Ltd source cafes . Army air forces amps Sharon Kilday Agency that disburses army mar Money worldwide. In addition to sending Money directly to usar. Eur for its use the Center spends Money in Europe independently of army theater command. In any event All three sets of Fig. Ures show that More Money came Back to Europe than left. The highlights of research into army air Force and cafes accounting for 1988 show that a cafes Europe reported earnings of $77 million which became part of cafes worldwide earnings of $214 million. A about 57 percent of the total earnings a $ 121 million a was allocated to the army and air Force for morale welfare and recreation programs. A the remaining $93 million went to cafes capital projects such As new exchanges. How much of this Money came Back to Europe a Safe received $6.3 million for morale welfare and recreation. A Usa eur received $37.6 million for morale welfare and recreation. A the army Community and family support Center in the United states spent $2.9 million of cafes Money in Europe mostly for sports programs and employee training. A the Exchange service budgeted $64.7 million for construction of new exchanges and Burger Kings renovations and Purchase of equipment. In All these numbers indicate that $111.5 million in cafes earnings were funnelled to Europe in 1988, nearly 45 percent More than left the continent. The amount will vary from year to year officials said although the trend appears the same in preliminary figures for 1989 and in budget proposals for 1990.aafes reaping big earnings on Gas overseas from Page 1 taxes on cafes gasoline in Europe. In West Germany Gas taxes Range from $1.58 to $l./8 per gallon depending on the Grade. That boosts the late january average for unleaded Premium to $2.61 per gallon according to the Lundburg Survey which surveys More than 13,000 stations worldwide. According to that Survey the average retail Price for self service unleaded Premium in the United states was $1.19. This compared with $1.27 for the same gasoline at cafes Europe stations. Thus if there were no taxes on gasoline at German stations it would be cheaper than a fest tax free Gas. Regardless for americans buying cafes Gas in Europe the savings Are significant. Based on statistics compiled by cafes Europe in Munich average gasoline use for each usar eur Register cd vehicle is just under 47 Gallons a month. At cafes prices that represents a savings of about $756 a year Over buying gasoline on the West German Economy. If cafes Europe used the 5-cent-a Tallon profit that it docs in the United tales the resulting 23 cents per gallon decrease in Price would mean an additional $ 130 a year savings. Tax free gasoline is generally available to americans serving in Europe depending on the country and status of forces agreement. A in Italy tax free gasoline coupons Are available to All service members and prices Are about 25 cents lower than at cafes facilities elsewhere in Europe. Navy officials in Naples who administer the program for All branches said prices Are set through negotiations with the italian government and any markup is used to pay administrative costs not to make a profit. A in the United kingdom cafes Sells gasoline at base stations though tax free sales Are strictly rationed. Prices and earnings ratios Are about the same As in West Germany but the volume is much less. Capt. Wes Davis an cafes Europe spokesman said the majority of cafes Gas sales Are in West Germany with a smaller portion in the Netherlands. A when we talk gasoline sales we re really talking about Germany a he said. Cafes figures show that 84 percent of its european Gas sales Are in West Germany. The up the whopping 50 cent per gallon Mark. In most of Europe represents the difference Between what cafes pays for gasoline and the Price changed at the pump. Of that 50 cents operating expenses account for 22 cents. That leaves 28 cents in earnings according to cafes. In comparison private companies in the states had an average markup last year of 10 to 12 cents a gallon according to the department of Energy and private sources. The average wholesale Cost for All grades of fuel in 1989 was the same 66 cents a gallon in both the United states and Europe. But the average cafes Price to the consumer was 9 cents higher in Europe than in the states $1.16 is. $1.07. Trilby Lundberg of the Lundberg sur vey said the markup in the states in mid january was 12 cents. That included 8.5 cents per gallon for payroll and operations and just 3.5 cents for profit. The breakdown for cafes prices in the states is similar. Cafes officials in the Dallas Headquarters said their . Prices Are set locally after a Survey of private Gas stations near the cafes stations. The government prices Are then set at the average of those surveyed or a few cents lower they said. The Price at cafes pumps in the states includes state and Federal taxes which averaged 26 cents per gallon last year. Most private stations in the . Market must rely on volume to succeed said Tom Goldsmith of the National Petroleum news. A profitable station might pump 10 million Gallons a year generating enough sales to cover expenses. Cafes Europe a 95 stations in contrast pumped 72 million Gallons in 1989, less than a million Gallons per station. Industry experts said that the smaller the volume the greater the costs As a percentage of the Price per gallon. Walter Kania chief of cafes Europe automotive Branch said cafes Europe overhead costs Are about 22 cents per gallon with 14 cents of that going to pay employees. The other 8 cents is used for printing coupons for supplies and other expenses. A you can to compare us with stations in the .,�?� insisted Hardt the cafes Europe Deputy. Some expenses listed by cafes Europe would not be in a . Gas station balance Sheet such As printing coupons or contributing to Headquarters overhead expenses he  breakdown Afes Gas prices 1989 Europe . Wholesale .66 .66 taxes 0 .26 labor operations <22 .10 earnings .28 .05 total 1.16 1.07 source Lundberg Survey cafes . Ass those expenses partially explain Why it. Is cheaper for cafes to deliver gasoline through the Coupon system on the local Economy than through its own stations. Esso and by gasoline companies charge cafes about 15 cents per gallon to redeem coupons used at Ott Posi Gas stations. That 15-cent fee is about a third less than the 22 cents a gallon it costs t pump Gas at an Exchange station. Exchange officials say that Ahhong it is cheaper to provide Gapsohn through Esso and by a Eyth be cafes stations As a  u americans. They say it is a Seric americans to be Able to buy gaol i american run stations at or near tary installations. And its a service americans  americans by 72 Al ions of Gas at Safe tur pc compared to 40 Mill,0n Gay Ion p chased on the Economy with coupons