Sunoco 2008 Annual Report Download - page 41

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permits. The facilities are expected to be completed 15 to 18 months after resolution of the
contingencies, which may move the targeted completion date beyond the previously announced
2010;
• Completed construction and began operations in 2008 at Haverhill II, a second 550 thousand
tons-per-year cokemaking facility and associated cogeneration power plant located at the
Company’s Haverhill, OH site;
• Began operations in 2007 at a new 1.7 million tons-per-year cokemaking facility in Vitória,
Brazil. SunCoke Energy has a $41 million preferred stock investment in this facility and receives
fees for operating the plant as well as for licensing its proprietary technology to the project
company; and
• Completed in December 2006 the $155 million purchase of the minority interest in the Jewell
cokemaking operations.
Sunoco also:
• Commenced a business improvement initiative in the fourth quarter of 2008 to reduce costs and
improve business processes. Implementation is expected to commence in the first quarter of 2009
with a goal of significantly reducing costs by moving the Company’s cost structure from an
average industry performance to first quartile performance. Cash outlays in connection with this
initiative, which largely consist of severance and related benefits, are likely to occur over
approximately one year. However, the Company does not expect these cash costs to be
incremental to the salary and benefits which would otherwise have been paid to employees who
are terminated.
• Repurchased 0.8, 4.0 and 12.2 million shares during 2008, 2007 and 2006, respectively, of its
outstanding common stock for $49, $300 and $871 million, respectively. Additional repurchases
of Company stock will be dependent on prevailing market conditions, available cash and the
attractiveness of repurchasing stock relative to other investment alternatives; and
• Increased the quarterly cash dividend on its common stock, effective with the second quarter of
2008, to $.30 per share ($1.20 per year), following increases from $.25 per share to $.275 per
share in the second quarter of 2007 and from $.20 per share to $.25 per share in the second quarter
of 2006.
For additional information regarding the above actions, see Notes 2, 15 and 16 to the Consolidated Financial
Statements (Item 8).
33