Valero earnings tumble as gasoline margins lag

NEW YORK, Jan 29 (Reuters) - U.S. refiner Valero Energy Corp (VLO.N) on Tuesday said fourth-quarter earnings fell sharply on lower profits from gasoline production.

Net income in the quarter fell to $567 million, or $1.02 a share, from $1.11 billion, or $1.80 a share, last year.

Profit margins from refining were relatively weak in the quarter as gasoline prices failed to keep pace with oil prices that soared to record levels.

Since the beginning of last year, shares of Valero are up about 7 percent, outperforming the Standard & Poor's 500 index, which fell about 4.5 percent in the same period. (Reporting by Michael Erman; Editing by Steve Orlofsky)