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Sunoco sees big 2Q
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June 4, 2001: 9:54 a.m. ET
Refiner expects earnings to be sharply higher than Wall Street forecasts
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NEW YORK (CNNfn) - Oil refiner Sunoco Inc. expects second-quarter earnings to be sharply higher than Wall Street estimates on exceptionally strong refining profit in April and May, the company said.
Philadelphia-based Sunoco (SUN: up $1.38 to $40.81, Research, Estimates) said it now expects second-quarter operating earnings between $1.75 and $2.25 a share, well ahead of analysts' forecasts for $1.63 a share, as compiled by earnings tracker First Call.
"The combination of excellent operations and strong margins so far this quarter should enable us to achieve record results this quarter," CEO John Drosdick said. "As we complete the first half of 2001, we expect to be well ahead of last year's record earnings pace and on track to generate in excess of $400 million of free cash flow in 2001."
Drosdick said exceptionally strong profit margins in oil refining accounted for much of the strength, adding that its chemicals business should be "modestly profitable" and much improved from the first quarter.
Drosdick also said he believes Sunoco's shares still are undervalued, saying he expects the company to complete a previously announced $150 million share repurchase program by the end of the second quarter. 
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Sunoco
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