DOW JONES NEWSWIRES
Sunoco Inc. (SUN) swung to a first-quarter profit as its
refining and supply business reported a profit as lower oil prices
led to higher margins and lower expenses.
Still, Chief Executive Lynn Elsenhans said Sunoco continues to
face a challenging market for petroleum and chemical products due
to ongoing economic weakness. Additionally, the company implemented
the first phase of its business improvement initiative and said it
plans to reduce costs by over $300 million on an annualized basis
by year end.
Sunoco, the second-biggest U.S. independent oil refiner by
volume after Valero Energy Corp. (VLO), reported a profit of $51
million, or 10 cents a share, compared with a year-earlier loss of
$38 million, or 50 cents a share. Excluding items, earnings would
have been 50 cents a share.
Revenue decreased 50% to $6.44 billion.
Analysts had expected per-share earnings, excluding items, of 34
cents.
The company's core refining and supply business swung to a
profit of $23 million from a year-ago loss of $123 million amid
higher realized margins and lower expenses, which was partially
offset by lower production volumes. Profit at its retail operations
slumped 77% to $6 million.
Sunoco's shares rose 1.8% to $32 in after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com