Sunoco Takes a Beating

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Sunoco Takes a Beating

PHILADELPHIA -- Sunoco Inc. blamed rising crude oil prices, excess inventory and sluggish demand for a sharp drop in second-quarter earnings, which plummeted nearly 95 percent.

Sunoco reported net earnings of $10 million for the three months ended June 30, compared to net income of $196 million for the second quarter of 2001. Sunoco said revenues for the quarter dropped to $3.55 billion from $3.93 billion in the second quarter of 2001.

Sunoco owns and operates more than 550 Aplus convenience stores in 10 East Coast states.

"Our second-quarter results, while much improved from recent quarters, still reflect well below mid-cycle conditions for our refining and chemicals businesses,'' said John Drosdick, chairman and CEO of the Philadelphia-based refiner.

The company's refining and supply division earned $16 million, down sharply from last year's record income of $155 million. The retail division earned $21 million, down from $33 million last year, while the chemicals division lost $1 million, compared to income of $14 million for the second quarter of 2001.

Year-to-date, Sunoco posted a net loss of $96 million compared to a net gain of $302 million for the first six months of 2001.

Sunoco is an independent manufacturer and marketer of petroleum and petrochemicals. It has five refineries with a combined capacity of 730,000 barrels a day, maintains a branded network of more than 4,100 stores and has interests in more than 10,000 miles of pipeline.