One of the largest independent refiner-marketers in the U.S., Sunoco also manufactures petrochemicals -- largely chemical intermediates used to make fibers, plastics, film and resins--as well as two-million tons of high-quality metallurgical-grade coke annually for use in the steel industry.
With diversified lines of businesses Sunoco saw increases across the board during the first quarter. "Our first-quarter results reflect an excellent start to 2005," said CEO John G. Drosdick in a May 5 press release. "Our Refining and Supply business continued to lead the way. Margins, although lower than the 2004 fourth quarter in the Northeast, were still well above historical norms. Without new units or additional capital, our refining organization has met the challenges of processing these crude oils, improving our refining margins, and increasing our crude oil options for the future.
"Chemicals improved most significantly versus last year's first quarter, earning $33 million versus $12 million a year ago. Despite continued feedstock cost pressures, Chemicals results have improved year-on-year for eight consecutive quarters. Fundamentals remain positive and we expect the recovery to continue."
"In other businesses, Retail Marketing lost $8 million, as retail margins could not keep pace with persistently rising wholesale prices, which increased over 40 cents per gallon during the quarter. As we approach the peak-driving season, market conditions for this business are improved. Coke and Logistics earned $10 million and $3 million, respectively, in the quarter. We completed startup of our new coke plant in Haverhill, Ohio, in late March. This plant is expected to increase annual Coke earnings by approximately $12 million and provide low-cost steam to our adjacent Chemicals phenol facility. "
IW 50 Best Manufacturing Company
