News Release
| Sunoco Reports Third Quarter Results |
PHILADELPHIA, Oct. 23 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE: SUN) today reported net income of $109 million ($1.40 per share diluted) for the third quarter of 2003 versus a net loss of $10 million ($.13 per share diluted) for the 2002 third quarter. Results for the current quarter included a $15 million after-tax charge to write down the company's one-third interest in a MTBE production facility in Mont Belvieu, TX. Excluding this special item, income for the third quarter of 2003 amounted to $124 million ($1.59 per share diluted). There were no special items in the prior-year third quarter. (Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 ) For the first nine months of 2003, Sunoco reported net income of $276 million ($3.56 per share diluted) versus a net loss of $108 million ($1.42 per share diluted) for the 2002 nine-month period. Excluding special items, Sunoco's income for the first nine months of 2003 was $291 million ($3.75 per share diluted) versus a loss of $91 million ($1.19 per share diluted). "Good results from each of our businesses led to our highest quarterly earnings in over two years," said John G. Drosdick, Sunoco Chairman and CEO. "Our Refining and Supply business was again the leading contributor, earning $98 million in the quarter. Improved gasoline demand and several industry operating issues resulted in strong refining margins. Operationally, our performance also continued to improve. For the quarter, crude unit utilization was at 100 percent of rated capacity, which includes strong operations at our Toledo refinery, despite the power blackout in mid-August. Refining margins in our core U.S. northeast and mid-continent markets have been strong for much of this year and our refineries have operated at consistently high utilization levels. Year-to-date, Refining and Supply has earned $241 million. "We are also encouraged by the improved results of our Chemicals business, which earned $21 million in the current quarter. For Sunoco Chemicals, margins and results have increased substantially over the past two quarters. With continued global economic growth, our Chemicals business should continue to increase its contribution to the company's earnings in the future." Commenting further on the company's results, Drosdick said, "Retail Marketing also recorded a good result for the quarter with earnings of $20 million. After lagging behind crude oil and wholesale gasoline price increases in July and August, retail margins recovered sharply in September and averaged 10 cents per gallon for the quarter. Our third-quarter results included a $4 million income contribution from the retail sites acquired from Speedway in June 2003. Year-to-date, Retail Marketing has earned $66 million." Drosdick continued, "Year-to-date, all five of our business units have improved results from 2002. Strategically, we have strengthened our Retail Marketing and Chemicals businesses through our 2003 transactions with Speedway and Equistar, respectively. We expect to generate sales proceeds of approximately $150 million from previously announced sales of selected retail sites in Mid-America and of our Chemicals plasticizer business. We continue to work with El Paso Corporation and the Federal Trade Commission to complete our purchase of the Eagle Point, NJ refinery and believe that we will be able to conclude this process by year-end. These transactions should substantially increase the company's earnings power. We continue to maintain a strong balance sheet and have the financial capacity to pursue additional strategic opportunities." DETAILS OF THIRD QUARTER RESULTS REFINING AND SUPPLY Refining and Supply earned $98 million in the current quarter versus a loss of $18 million in the third quarter of 2002. Significantly higher margins and higher production volumes led to the much improved results versus the comparable prior-year quarter. Partially offsetting these positive factors were higher expenses, including refinery fuel costs. Margins at each of Sunoco's refining centers were much improved, particularly in the mid-continent region. While most product margins were higher, wholesale gasoline margins were especially strong during much of the quarter. Operationally, total production increased at each refining system and, in total, was approximately 3.3 million barrels higher than the 2002 third quarter. At Sunoco's Toledo refinery, crude and conversion unit throughputs were at near-record levels despite being impacted for several days by the electrical power failure in the region. RETAIL MARKETING Retail Marketing earned $20 million in the third quarter of 2003 versus $7 million in the third quarter of 2002. The increase in earnings was due largely to higher retail gasoline margins, which were up one cent per gallon compared to the prior-year quarter, and higher gasoline and distillate sales volumes. The Speedway acquisition, which was completed in June 2003, added $4 million after tax to earnings for the third quarter of 2003. CHEMICALS Chemicals earned $21 million in the third quarter of 2003 versus $10 million in the prior-year period. Average margins were 9.1 cents per pound, up almost 3 cents per pound versus the prior-year quarter. Margins for both phenol and polypropylene products were improved for the quarter. Results for the quarter included a $4 million after-tax income contribution related to a supply agreement with Equistar and from the polypropylene facility acquired from Equistar on March 31, 2003. Partially offsetting these improvements were lower sales volumes, higher expenses including natural gas fuel costs, and lower equity earnings from Belvieu Environmental Fuels (BEF), Sunoco's joint venture MTBE interest. Sales volumes were lower, in part, due to maintenance activities at Sunoco operating plants, as well as at certain customer facilities. LOGISTICS Sunoco's Logistics segment, which is comprised of Sunoco's 75-percent interest in Sunoco Logistics Partners L.P. (NYSE: SXL) and certain other assets and joint venture interests, earned $9 million in both third-quarter periods. COKE The Coke business earned $11 million in the third quarter of 2003 versus $14 million in the third quarter of 2002. Results for the prior-year quarter included income from approximately 160,000 tons of coke sold from inventory during the period. CORPORATE AND OTHER Corporate administrative expenses were $10 million after tax in the current quarter versus $7 million in the comparable quarter last year. The increase was largely due to higher employee-related expenses, including pension and performance-related incentive compensation. Net financing expenses were $25 million after tax in both third-quarter periods. NINE MONTH RESULTS Sunoco had net income of $276 million for the first nine months of 2003 versus a net loss of $108 million in the comparable 2002 period. Year-to-date results for 2003 included the aforementioned $15 million after-tax charge associated with the write-down of the MTBE production facility. Results for the first nine months of 2002 included a $17 million after-tax provision primarily for asset write-downs and associated charges related to the shutdown of a polypropylene line at the La Porte, TX plant and the shutdown of certain processing units at the Toledo refinery. Also included in the provision was a $3 million after-tax accrual relating to a lawsuit concerning the Puerto Rico refinery, which was divested in December 2001. Excluding these special items, Sunoco earned $291 million for the first nine months of 2003 versus a loss of $91 million in the comparable 2002 period. The improvement in earnings was primarily due to higher margins in the Refining and Supply, Retail Marketing and Chemicals business units. Higher sales volumes in the Refining and Supply and Retail Marketing businesses also contributed to the improved results. Sunoco's other business units also had slightly higher earnings in 2003. Partially offsetting these increases were higher expenses across the business units, primarily refinery fuel and utility costs and employee-related expenses and higher corporate and net financing expenses. Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer and marketer of petroleum and petrochemical products. With 730,000 barrels per day of refining capacity, over 4,600 retail sites selling gasoline and convenience items, interests in almost 11,000 miles of domestic crude oil and refined product pipelines and 34 product terminals, Sunoco is one of the largest independent refiner-marketers in the United States. Sunoco is a growing force in petrochemicals with approximately six billion pounds of annual sales, largely chemical intermediates used in the manufacture of fibers, plastics, film and resins. Utilizing a proprietary technology, Sunoco also manufactures two million tons annually of high-quality blast furnace coke for use in the steel industry. Anyone interested in obtaining further insights into this quarter's results can monitor the Company's quarterly teleconference call, which is scheduled for 3:00 p.m. ET today (October 23, 2003). It can be accessed through Sunoco's Web site - www.SunocoInc.com. It is suggested that you visit the site prior to the teleconference to ensure that you have downloaded any necessary software. NOTE: In this earnings release, Sunoco has provided income (loss) before special items in addition to net income (loss) determined in accordance with generally accepted accounting principles (GAAP). This non-GAAP financial measure is used by Sunoco management to evaluate financial and operating performance as the special items are not directly related to operating results for the period. It also facilitates comparisons to prior-period financial results and to the results of the company's competitors. The measure is also comparable to earnings forecasts made by securities analysts and others, which generally exclude special items as they are difficult to predict in advance. A reconciliation of income before special items to GAAP net income is presented in the Earnings Profile of Sunoco Businesses on pages 8, 9, 15 and 16 in this release. Special items are not allocated to Sunoco's business segments in its consolidated financial statements. Income (loss) before special items should not be considered a substitute for net income (loss). Those statements made in this release that are not historical facts are forward-looking statements intended to be covered by the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Sunoco believes that the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking statements are inherently uncertain and necessarily involve risks that may affect Sunoco's business prospects and performance causing actual results to differ from those discussed in the foregoing release. Such risks and uncertainties include, by way of example and not of limitation: general business and economic conditions; competitive products and pricing; changes in refining, chemical and other product margins; variation in petroleum-based commodity prices and availability of crude oil supply or transportation; fluctuations in supply of feedstocks and demand for products manufactured; changes in operating conditions and costs; changes in the expected level of environmental capital, operating or remediation expenditures; potential equipment malfunction; potential labor relations problems; the legislative and regulatory environment; plant construction/repair delays; nonperformance by major customers, suppliers or other business partners; and political and economic conditions, including the impact of potential terrorist acts and international hostilities. These and other applicable risks and uncertainties have been described more fully in Sunoco's second quarter Form 10-Q filed with the Securities and Exchange Commission on August 7, 2003 and in other periodic reports filed with the Securities and Exchange Commission. Sunoco undertakes no obligation to update any forward-looking statements in this release, whether as a result of new information or future events.
Sunoco, Inc.
2003 Third Quarter and Nine-Month Financial Summary
(Unaudited)
Third Quarter 2003 2002
Revenues $4,594,000,000 $3,812,000,000
Net Income (Loss) $109,000,000 $(10,000,000)*
Net Income (Loss) Per Share of
Common Stock:
Basic $1.41 $(.13)
Diluted $1.40 $(.13)**
Weighted Average Number of Shares
Outstanding (In Millions):
Basic 77.1 76.3
Diluted 78.0 76.3**
Nine Months
Revenues $13,353,000,000 $10,299,000,000
Net Income (Loss) $276,000,000 $(108,000,000)*
Net Income (Loss) Per Share of
Common Stock:
Basic $3.59 $(1.42)
Diluted $3.56 $(1.42)**
Weighted Average Number of Shares
Outstanding (In Millions):
Basic 76.8 76.2
Diluted 77.6 76.2**
* Restated to reflect the adoption of the fair value method of accounting
for employee stock compensation plans effective January 1, 2002.
** Since the assumed issuance of common stock under stock incentive awards
would not have been dilutive, the diluted per share amounts are equal
to the basic per share amounts.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars)
(Unaudited)
Three Months Ended
September 30
2003 2002 Variance
Refining and Supply $ 98 $(18) $116
Retail Marketing 20 7 13
Chemicals 21 10 11
Logistics 9 9 --
Coke 11 14 (3)
Corporate and Other:
Corporate expenses (10) (7) (3)
Net financing expenses and other (25) (25) --
124 (10) 134
Asset write-downs and other
matters (15) -- (15)
Consolidated net income (loss) $109 $(10) $119
Earnings per share of common stock
(diluted):
Income (loss) before special
items $1.59 $(.13) $1.72
Special items (.19) -- (.19)
Net income (loss) $1.40 $(.13) $1.53
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars)
(Unaudited)
Nine Months Ended
September 30
2003 2002 Variance
Refining and Supply $241 $(79) $320
Retail Marketing 66 8 58
Chemicals 27 11 16
Logistics 29 26 3
Coke 32 30 2
Corporate and Other:
Corporate expenses (29) (21) (8)
Net financing expenses and other (75) (66) (9)
291 (91) 382
Asset write-downs and other
matters (15) (17) 2
Consolidated net income (loss) $276 $(108) $384
Earnings per share of common stock
(diluted):
Income (loss) before special
items $3.75 $(1.19) $4.94
Special items (.19) (.23) .04
Net income (loss) $3.56 $(1.42) $4.98
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
Certain revisions to Sunoco's Financial and Operating Statistics have been made to the 2002 amounts to conform to the 2003 presentation. The primary changes provide refinery production volumes (instead of the previously reported sales volumes) and realized refining margin per barrel on the basis of production available for sale (instead of the previously reported sales volumes which included purchase-for-sale activity). More detailed information concerning refining throughputs has also been provided. Additionally, the value of internally produced fuel at Sunoco's refineries and chemical plants, which was previously shown as an operating expense, is now shown as a reduction to realized margins. Note: Comparable Financial and Operating Statistics for periods dating back to 1999 are available at Sunoco's website, www.SunocoInc.com, under "Shareholder and Financial Information - Financial Reports".
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
2003 2002 2003 2002
TOTAL REFINING AND SUPPLY
Income (Loss) (Millions of
Dollars) $98 $(18) $241 $(79)
Realized Wholesale Margin*
(Per Barrel of Production
Available for Sale) $5.36 $2.65 $5.00 $2.35
Crude Inputs as Percent
of Crude Unit
Rated Capacity 100 94 98 94
Throughputs (Thousand
Barrels Daily):
Crude Oil 727.2 686.7 718.1 688.8
Other Feedstocks 50.5 55.4 53.1 58.6
Total Throughputs 777.7 742.1 771.2 747.4
Products Manufactured
(Thousand Barrels Daily):
Gasoline 388.9 375.9 374.3 376.0
Middle Distillates 236.0 228.0 238.1 227.5
Residual Fuel 64.7 51.6 63.0 55.8
Petrochemicals 29.7 28.5 28.1 30.8
Lubricants 13.9 13.8 13.7 13.9
Other 74.5 73.3 83.7 74.1
Total Production 807.7 771.1 800.9 778.1
Less: Production Used as
Fuel in Refinery
Operations 38.1 37.6 37.9 37.3
Total Production
Available for Sale 769.6 733.5 763.0 740.8
* Wholesale sales revenue less cost of crude oil, other feedstocks,
product purchases and related terminalling and transportation.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
2003 2002 2003 2002
Northeast Refining System
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $4.81 $2.25 $4.96 $1.91
Market Benchmark 6-3-2-1
(Per Barrel) $5.58 $2.32 $5.99 $1.80
Crude Inputs as Percent
of Crude Unit
Rated Capacity 99 94 98 94
Throughputs (Thousand
Barrels Daily):
Crude Oil 499.2 475.9 493.4 476.8
Other Feedstocks 44.4 46.8 46.5 51.3
Total Throughputs 543.6 522.7 539.9 528.1
Products Manufactured
(Thousand Barrels Daily):
Gasoline 266.2 269.8 262.3 267.1
Middle Distillates 173.5 164.4 171.7 165.5
Residual Fuel 60.5 47.7 58.9 52.0
Petrochemicals 21.4 20.7 20.8 22.9
Other 41.3 40.7 46.7 42.4
Total Production 562.9 543.3 560.4 549.9
Less: Production Used as
Fuel in Refinery
Operations 26.6 26.9 26.9 26.7
Total Production
Available for Sale 536.3 516.4 533.5 523.2
Toledo Refinery
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $7.31 $3.39 $5.53 $2.95
Market Benchmark 4-3-1
(Per Barrel) $7.93 $4.36 $6.59 $4.08
Crude Inputs as Percent
of Crude Unit
Rated Capacity 106 95 101 95
Throughputs (Thousand
Barrels Daily):
Crude Oil 147.8 132.7 141.6 132.7
Other Feedstocks 6.0 8.0 6.2 6.9
Total Throughputs 153.8 140.7 147.8 139.6
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
Toledo Refinery
(Continued) 2003 2002 2003 2002
Products Manufactured
(Thousand Barrels Daily):
Gasoline 104.7 87.4 94.5 87.9
Middle Distillates 34.4 37.6 37.1 34.9
Residual Fuel 4.2 3.9 4.1 3.8
Petrochemicals 8.3 7.8 7.3 7.9
Other 12.9 12.2 13.7 13.5
Total Production 164.5 148.9 156.7 148.0
Less: Production Used as
Fuel in Refinery
Operations 9.4 8.8 9.0 8.6
Total Production
Available for Sale 155.1 140.1 147.7 139.4
Tulsa Refinery
Realized Wholesale Margin
(Per Barrel
of Production Available
for Sale) $5.32 $3.96 $4.29 $4.29
Market Benchmark 3-1-2
(Per Barrel) $6.08 $3.95 $5.59 $3.10
Crude Inputs as Percent
of Crude Unit
Rated Capacity 94 92 98 93
Throughputs (Thousand
Barrels Daily):
Crude Oil 80.2 78.1 83.1 79.3
Other Feedstocks .1 .6 .4 .4
Total Throughputs 80.3 78.7 83.5 79.7
Products Manufactured
(Thousand
Barrels Daily):
Gasoline 18.0 18.7 17.5 21.0
Middle Distillates 28.1 26.0 29.3 27.1
Lubricants 13.9 13.8 13.7 13.9
Other 20.3 20.4 23.3 18.2
Total Production 80.3 78.9 83.8 80.2
Less: Production Used
as Fuel in
Refinery Operations 2.1 1.9 2.0 2.0
Total Production
Available for
Sale 78.2 77.0 81.8 78.2
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
2003 2002 2003 2002
RETAIL MARKETING
Income (Millions of
Dollars) $20 $7 $66 $8
Retail Margin (Per Barrel):
Gasoline $4.20 $3.85 $4.21 $3.04
Middle Distillates $3.25 $2.63 $4.86 $4.03
Sales of Petroleum
Products (Thousand
Barrels Daily):
Gasoline 303.6 270.9 275.1 261.2
Middle Distillates 38.0 33.8 39.9 35.3
341.6 304.7 315.0 296.5
Total Retail Gasoline
Outlets, End of
Period 4,620 4,408 4,620 4,408
Throughput per Company
Owned or
Leased Outlet
(M Gal/Site/Month) 127 120 115 113
Convenience Stores:
Total Stores, End of
Period 842 644 842 644
Merchandise Sales
(M$/Store/Month) $80 $76 $73 $68
Merchandise Margin
(Company
Operated)(% of Sales) 24% 25% 24% 25%
CHEMICALS
Income (Millions of
Dollars) $21 $10 $27 $11
Margin (Cents per Pound)
- All
Products 9.1 6.3 7.6 5.9
Sales (Millions of Pounds):
Phenol and Related Products
(including Bisphenol-A) 635 757 1,934 2,094
Polypropylene* 403 320 1,139 1,040
Plasticizers 155 149 446 460
Propylene 191 198 578 568
Other 34 43 116 142
1,418 1,467 4,213 4,304
Margin for Key Products**
(Cents per Pound)
Phenol and Related
Products*** 14.3 7.4 12.8 5.8
Polypropylene* 12.6 10.8 10.7 9.3
* Excludes Epsilon Products Company, LLC polypropylene joint venture.
** Before terminalling and transportation costs.
***Consists of margin for phenol and byproducts divided by phenol sales
volumes. Excludes margin and sales volumes attributable to a long-
term, cost-based contract with Honeywell International Inc.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
2003 2002 2003 2002
COKE
Income (Millions of
Dollars) $11 $14 $32 $30
Coke Production
(Thousands of Tons) 517 529 1,511 1,487
Coke Sales (Thousands of
Tons) 516 690 1,511 1,540
CAPITAL EXPENDITURES (Millions of Dollars)
Refining and Supply $60 $32 $163 $110
Retail Marketing 27 34 62* 81
Chemicals 8 7 18** 23
Logistics 9 12 24 27
Coke 1 1 3 3
$105 $86 $270 $244
* Excludes $162 million purchase from a subsidiary of Marathon Ashland
Petroleum LLC of 193 direct Speedway retail gasoline sites located
primarily in Florida and South Carolina, including related inventory.
**Excludes $198 million associated with the formation of a propylene
partnership with Equistar Chemicals, L.P., which includes a 700 million
pounds-per-year, 15-year propylene supply contract with Sunoco, and the
acquisition of Equistar's Bayport polypropylene facility.
DEPRECIATION, DEPLETION AND
AMORTIZATION (Millions of Dollars)
Refining and Supply $42 $38 $121 $ 114
Retail Marketing 25 25 73 71
Chemicals 16 11 43 32
Logistics 6 7 20 19
Coke 4 3 10 9
$93 $84 $267 $245
BALANCE SHEET INFORMATION
(Millions of Dollars) At At
September 30 December 31
2003 2002
Cash and Cash Equivalents $355 $390
Total Borrowings (including
Current Portion) $1,458 $1,455
Shareholders' Equity $1,619 $1,394
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars)
(Unaudited)
2002*
1st 2nd 3rd 4th Total
Refining and
Supply $(76) $15 $(18) $48 $(31)
Retail
Marketing (20) 21 7 12 20
Chemicals 2 (1) 10 17 28
Logistics 8 9 9 7 33
Coke 7 9 14 12 42
Corporate and
Other:
Corporate
expenses (8) (6) (7) (5) (26)
Net financing
expenses and
other (20) (21) (25) (25) (91)
(107) 26 (10) 66 (25)
Asset write-downs
and other
matters -- (17) -- (5) (22)
Consolidated net
income
(loss) $(107) $9 $(10) $ 61 $(47)
Earnings per
share of common
stock
(diluted):
Income (loss)
before special
items $(1.41) $ .34 $(.13) $ .86 $(.33)
Special items -- (.22) -- (.07) (.29)
Net income
(loss) $(1.41) $ .12 $(.13) $ .79 $(.62)
* During the fourth quarter of 2002, Sunoco adopted the fair value method
of accounting for employee stock compensation plans. In connection
therewith, the Company recognized $4 million of after-tax expense in
2002 ($1 million in each quarter) for all unvested stock options
attributable to the vesting that occurred in 2002. The first three
quarters of 2002 were restated to give retroactive effect to this
accounting change.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars)
(Unaudited)
2003
1st 2nd 3rd
Refining and Supply $93 $50 $98
Retail Marketing 10 36 20
Chemicals (4) 10 21
Logistics 11 9 9
Coke 10 11 11
Corporate and Other:
Corporate expenses (9) (10) (10)
Net financing expenses and
other (25) (25) (25)
86 81 124
Asset write-downs and other matters -- -- (15)
Consolidated net income $86 $81 $109
Earnings per share of common stock
(diluted):
Income before special items $1.12 $1.04 $1.59
Special items -- -- (.19)
Net income $1.12 $1.04 $1.40
Sunoco, Inc.
Consolidated Statements of Operations
(Millions of Dollars)
(Unaudited)
2002*
1st 2nd 3rd 4th Total
REVENUES
Sales and other
operating revenue
(including consumer
excise
taxes) $2,918 $3,527 $3,789 $4,065 $14,299
Interest income 1 2 2 2 7
Other income 12 27 21 18 78
2,931 3,556 3,812 4,085 14,384
COSTS AND EXPENSES
Cost of products
sold and
operating
expenses 2,380 2,780 3,047 3,223 11,430
Consumer excise
taxes 428 460 478 468 1,834
Selling, general
and administrative
expenses 154 146 166 156 622
Depreciation,
depletion and
amortization 79 82 84 84 329
Payroll, property
and other taxes 28 23 25 24 100
Provision for
write-down of assets
and other
matters -- 26 -- 8 34
Interest cost and
debt expense 26 28 29 28 111
Interest
capitalized -- (1) (1) (1) (3)
3,095 3,544 3,828 3,990 14,457
Income (loss)
before income tax
expense
(benefit) (164) 12 (16) 95 (73)
Income tax
expense
(benefit) (57) 3 (6) 34 (26)
Net Income
(Loss) $ (107) $9 $(10) $61 $(47)
* During the fourth quarter of 2002, Sunoco adopted the fair value method
of accounting for employee stock compensation plans. In connection
therewith, the Company recognized $4 million of after-tax expense in
2002 ($1 million in each quarter) for all unvested stock options
attributable to the vesting that occurred in 2002. The first three
quarters of 2002 were restated to give retroactive effect to this
accounting change.
Sunoco, Inc.
Consolidated Statements of Operations
(Millions of Dollars)
(Unaudited)
2003
1st 2nd 3rd
REVENUES
Sales and other operating
revenue
(including consumer excise
taxes) $4,560 $4,169 $4,601
Interest income 3 2 1
Other income (loss) 7 18 (8)
4,570 4,189 4,594
COSTS AND EXPENSES
Cost of products sold and
operating expenses 3,701 3,250 3,515
Consumer excise taxes 437 490 556
Selling, general and
administrative
expenses 160 178 199
Depreciation, depletion and
amortization 84 90 93
Payroll, property and other taxes 27 24 30
Interest cost and debt expense 28 29 28
Interest capitalized (1) -- (1)
4,436 4,061 4,420
Income before income tax expense 134 128 174
Income tax expense 48 47 65
Net Income $86 $81 $109
SOURCE Sunoco, Inc.
-0- 10/23/2003
/CONTACT: Jerry Davis (media), +1-215-977-6298 or Terry Delaney
(investors), +1-215-977-6106, both of Sunoco/
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/Web site: http://www.SunocoInc.com /
(SUN)
CO: Sunoco, Inc.
ST: Pennsylvania
IN: OIL CHM
SU: ERN CCA MAV
MR
-- PHTH010 --
7825 10/23/2003 08:02 EDT http://www.prnewswire.com
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