Sunoco CEO: More Costs Related To Layoffs Expected
07 Maggio 2009 - 10:38PM
Dow Jones News
Sunoco Inc. (SUN) reported $34 million in administrative charges
primarily related to severance costs for the first quarter, and
says it may accrue similar charges later in the year.
Independent refiner Sunoco began a business improvement plan in
2008, focused upon reducing costs. In the first phase of this plan,
Sunoco reviewed some of its refineries, with aid from McKinsey
& Co. consultants. Sunoco will now use internal teams to review
the rest of its refineries and chemical plants.
"Because we have just started the work in the other plants we're
not really in a position to determine the size," Chief Executive
Lynn Elsenhans told analysts on a conference call, when asked about
future costs associated with layoffs. "When we know what it is we
will disclose it," Elsenhans said.
The $34 million charge in the first quarter included a $4
million after-tax charge for a contract loss, employee severance
and other exit costs in connection with the shutdown of a chemical
plant in Bayport, Texas. The company has not announced any other
plans to close production facilities.
-By Jessica Resnick-Ault, Dow Jones Newswires; 201-938-4435;
jessica.resnick-ault@dowjones.com