Sunoco 2009 Annual Report Download - page 43

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Results of Operations
Earnings Profile of Sunoco Businesses (millions of dollars after tax)
2009 2008 2007
Refining and Supply:
Continuing operations ...................................... $(316) $448 $673
Discontinued Tulsa operations ............................... 3 67 99
Retail Marketing ............................................ 86 201 69
Chemicals ................................................. 1 36 26
Logistics ................................................... 97 85 45
Coke ...................................................... 180 105 29
Corporate and Other:
Corporate expenses ....................................... (38) (46) (67)
Net financing expenses and other ............................ (50) (22) (41)
Asset write-downs and other matters:
Continuing operations .................................... (411) (43) (32)
Discontinued Tulsa operations ............................. (3) (95) —
Eagle Point LIFO inventory profits ............................ 55 — —
Sale of discontinued Tulsa operations ......................... 41 — —
Sale of retail heating oil and propane distribution business ........ 26 — —
Income tax matters ........................................ — 26 —
Issuance of Sunoco Logistics Partners L.P. limited partnership
units .................................................. — 14 90
Net income (loss) attributable to Sunoco, Inc. shareholders . . . $(329) $776 $891
Analysis of Earnings Profile of Sunoco Businesses
In 2009, the net loss attributable to Sunoco, Inc. shareholders was $329 million, or $2.81 per share of
common stock on a diluted basis, compared to net income attributable to Sunoco, Inc. shareholders of $776
million, or $6.63 per share, in 2008 and $891 million, or $7.43 per share, in 2007.
The $1,105 million decrease in results attributable to Sunoco, Inc. shareholders in 2009 was primarily due to
lower margins from continuing operations in Sunoco’s Refining and Supply ($873 million) and Retail Marketing
($173 million) businesses, higher provisions for asset write-downs and other matters ($276 million), lower
production of refined products ($80 million), lower operating results attributable to discontinued Tulsa refining
operations ($64 million), lower results attributable to Sunoco’s Chemicals business ($35 million) and higher net
financing expenses ($28 million). Partially offsetting these negative factors were lower expenses ($261 million),
higher income attributable to the Coke business ($75 million), LIFO inventory profits from the liquidation of
refined products in connection with the shutdown of the Eagle Point refinery ($55 million) and the gain on the
sale of the discontinued Tulsa refining operations ($41 million).
The $115 million decrease in net income attributable to Sunoco, Inc. shareholders in 2008 was primarily due
to higher provisions for asset write-down and other matters ($106 million), lower gains related to the prior
issuance of Sunoco Logistics Partners L.P. limited partnership units ($76 million), higher expenses ($113
million), lower production of refined products ($102 million), lower operating results attributable to discontinued
Tulsa refining operations ($32 million), lower gains on asset divestments ($18 million) and lower retail gasoline
and distillate sales volumes ($22 million). Partially offsetting these negative factors were higher average retail
gasoline and distillate margins ($178 million); higher refined product margins from continuing operations ($15
million); higher income attributable to Sunoco’s Coke ($76 million), Logistics ($40 million) and Chemicals ($10
million) businesses; lower net financing expenses ($19 million); and gains recognized in 2008 related to certain
income tax matters ($26 million).
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