Sunoco Reports Third Quarter 2009 Results

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PHILADELPHIA--(Business Wire)--
Sunoco, Inc. (NYSE: SUN) today reported a net loss attributable to Sunoco
shareholders of $312 million ($2.67 per share diluted) for the third quarter of
2009 versus net income attributable to Sunoco shareholders of $549 million
($4.70 per share diluted) for the third quarter of 2008. Excluding special
items, Sunoco had a loss for the 2009 third quarter of $34 million ($0.29 per
share diluted) versus 2008 third quarter income of $559 million ($4.78 per share
diluted).

For the first nine months of 2009, Sunoco reported a net loss attributable to
Sunoco shareholders of $355 million ($3.04 per share diluted) versus net income
attributable to Sunoco shareholders of $572 million ($4.88 per share diluted)
for the first nine months of 2008. Excluding special items, Sunoco reported a
loss of $6 million ($0.05 per share diluted) in the first nine months of 2009
versus 2008 first nine months income of $561 million ($4.79 per share diluted).

"During the third quarter, refining and chemicals results continued to be
impacted by weak demand, but our other businesses continued to generate steady
earnings," said Lynn L. Elsenhans, Sunoco`s Chairman and Chief Executive
Officer. "The earnings contribution from our non-refining businesses improved to
$102 million in the third quarter, up from $78 million in the second quarter.
Retail Marketing benefited from stable wholesale prices, earning $49 million,
while Logistics earned $19 million and our Coke business earned $35 million."

Commenting on the Company's outlook, Elsenhans said, "We continue to expect a
challenging market for petroleum and chemical products due to ongoing economic
weakness and additional global supply. However, the Company has taken steps to
improve our competitive cost position and optimize our portfolio and operational
performance. Specifically, on October 6, we announced the indefinite idling of
the Eagle Point refinery in an effort to reduce losses in our refining business
at a time when weak demand and increased global refining capacity have created
margin pressure on the entire refining industry. This effort will shift current
Eagle Point production to our nearby refineries in Marcus Hook and Philadelphia,
which will operate at higher capacity utilization and allow us to reduce our
breakeven costs. We also continued to make progress on cost reductions through
our business improvement initiative and took steps to further optimize our
portfolio through the divestiture of our retail heating oil and propane
distribution business. Additionally, we have recently informed our employees of
changes to our defined benefit pension plan and postretirement medical coverage
which will reduce our employee-related costs and future cash needs to fund the
plans. These initiatives, coupled with our spending discipline and our
previously announced dividend reduction in 2010, will allow us to maintain our
financial flexibility as we manage through this refining down cycle."

DETAILS OF THIRD QUARTER RESULTS

REFINING AND SUPPLY- Continuing Operations

Refining and Supply had a loss from continuing operations totaling $118 million
in the current quarter versus income of $398 million in the third quarter of
2008. The decrease in results was due to lower realized margins and lower
production volumes, partially offset by lower expenses. Our realized margins and
crude utilization rate were negatively affected by market weakness during the
quarter. The overall crude utilization rate was 74 percent for the quarter which
includes the impact of a planned turnaround at our Toledo refinery and a planned
one-month maintenance outage at a fluid catalytic cracking unit in our
Philadelphia refinery. The process for idling the Eagle Point refinery continues
and all processing units have ceased production this week.

REFINING AND SUPPLY- Discontinued Operations

Discontinued Tulsa refining operations, which were divested on June 1, 2009, had
income of $26 million in the third quarter of 2008.

RETAIL MARKETING

Retail Marketing earned $49 million in the current quarter versus $72 million in
the third quarter of 2008. The decrease in earnings was primarily due to lower
average retail gasoline margins, partially offset by lower expenses. Sales
volumes were relatively flat versus the year-ago quarter. Retail gasoline
margins in the third quarter of 2008 benefited from the rapid decrease in
wholesale prices during that period.

CHEMICALS

Chemicals reported a loss of $1 million in the third quarter of 2009 versus
income of $19 million in the third quarter of 2008. The decrease in results was
due primarily to lower margins and sales volumes, partially offset by lower
expenses.

LOGISTICS

Logistics earned $19 million in the third quarter of 2009 versus $20 million in
the third quarter of 2008. Additional earnings from a refined products pipeline
and terminal system acquired in November 2008 were essentially offset by lower
lease acquisition results.

COKE

Coke earned $35 million in the third quarter of 2009 compared to $29 million in
the third quarter of 2008. The increase in earnings was primarily due to
improved results from Jewell operations largely associated with higher price
realizations from coke production.

CORPORATE AND OTHER

Corporate Expenses - Corporate administrative expenses (income) were $6 million
after tax in the third quarter of 2009 versus $(2) million after tax in the
third quarter of 2008. Corporate expenses included favorable income tax
consolidation adjustments amounting to $5 and $11 million in the third quarters
of 2009 and 2008, respectively, which reversed unfavorable adjustments recorded
in the first six months of those years.

Net Financing Expenses and Other - Net financing expenses and other were $12
million after tax in the third quarter of 2009 versus $7 million after tax in
the third quarter of 2008. The increase was primarily due to higher interest
expense.

SPECIAL ITEMS

During the third quarter of 2009, Sunoco recorded a $278 million after-tax
provision in connection with its plan to idle indefinitely all process units at
the Eagle Point refinery, of which $254 million represents non-cash charges;
recorded a $14 million after-tax charge in connection with the business
improvement initiative, all of which was attributable to a non-cash provision
for pension and postretirement settlement losses; recorded a $12 million
after-tax non-cash provision to write down to estimated fair value certain other
assets in the Refining and Supply business; and recognized a $26 million
after-tax gain on divestment of the retail heating oil and propane distribution
business. The total net impact of special items during the third quarter of 2009
is a charge of $278 million after tax.

During the third quarter of 2008, Sunoco recognized a $10 million after-tax
provision to write-off certain assets attributable to its discontinued Tulsa
operations.

PENSION AND POSTRETIREMENT HEALTHCARE CHANGES

Effective June 30, 2010, pension benefits under the Company's defined benefit
pension plans will be frozen for most employees. Similarly, postretirement
medical benefits for the majority of future retirees will be phased out for
those employees retiring after July 1, 2010. These moves will bring the Company
more predictable retirement plan costs and cash flow. By freezing the benefits,
Sunoco`s future financial liabilities and requirements for cash contributions to
the pension plans and funding of retiree health care will be substantially
reduced.

Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer and
marketer of petroleum and petrochemical products. With 825 thousand barrels per
day of refining capacity, approximately 4,700 retail sites selling gasoline and
convenience items, approximately 6,000 miles of crude oil and refined product
owned and operated pipelines and approximately 40 product terminals, Sunoco is
one of the largest independent refiner-marketers in the United States. Sunoco is
a significant manufacturer of petrochemicals with annual production capacity of
approximately five billion pounds, largely chemical intermediates used to make
fibers, plastics, film and resins. Utilizing a unique, patented technology,
Sunoco`s cokemaking facilities in the United States have the capacity to
manufacture approximately 3.0 million tons annually of high-quality
metallurgical-grade coke for use in the steel industry. Sunoco also is the
operator of, and has an equity interest in, a 1.7 million tons-per-year
cokemaking facility in Vitória, Brazil.

Anyone interested in obtaining further insights into the third quarter's results
can monitor the Company's quarterly teleconference call, which is scheduled for
5:30 p.m. ET on November 5, 2009. It can be accessed through Sunoco's website -
www.SunocoInc.com. It is suggested that you visit the site prior to the
teleconference to ensure that you have downloaded any necessary software.

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. These forward-looking statements are based upon
assumptions by the Company concerning future conditions, any or all of which
ultimately may prove to be inaccurate, and upon the current knowledge, beliefs
and expectations of Company management. These forward-looking statements are not
guarantees of future performance. The reader should not place undue reliance on
these forward-looking statements, which speak only as of the date of this press
release. The Company expressly disclaims any obligation to update or alter its
forward-looking statements, whether as a result of new information, future
events or otherwise.

Forward-looking statements are inherently uncertain and involve significant
known and unknown risks and uncertainties (many of which are beyond the control
of the Company) that could cause actual results to differ materially from those
discussed in this release.

Such risks and uncertainties include economic, business, competitive and/or
regulatory factors affecting the Company`s business, as well as uncertainties
related to the outcomes of pending or future litigation, legislation, or
regulatory actions. Among such risks are: changes in crude oil or natural gas
prices, refining, marketing and chemicals margins, or other market conditions
affecting the oil and gas industry; higher-than-expected costs of, or delays in,
planned development or completion of repair projects, capital projects,
acquisitions, or dispositions; operational interruptions, unforeseen technical
difficulties and/or changes in technical or operating conditions; general
domestic and international economic and political conditions, wars and acts of
terrorism or sabotage; the outcome of commercial negotiations; the actions of
competitors or regulators; the competitiveness of alternate-energy sources or
product substitutes; technological developments; liability resulting from
pending or future litigation; significant investment or product changes and/or
liability for remedial actions or assessments under existing or future
environmental regulations; gains and losses related to the acquisition,
disposition or impairment of assets; recapitalizations; access to, or
significantly higher costs of, capital; the effects of changes in accounting
rules applicable to the Company; and changes in tax, environmental and other
laws and regulations applicable to the Company`s businesses. Unpredictable or
unknown factors not discussed in this release also could have material adverse
effects on forward-looking statements.

In accordance with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company has included in its Annual Report on
Form 10-K for the year ended December 31, 2008 and in its subsequent Form 10-Q
and Form 8-K filings, cautionary language identifying other important factors
(though not necessarily all such factors) that could cause future outcomes to
differ materially from those set forth in the forward-looking statements. For
more information concerning these factors, see the Company`s Securities and
Exchange Commission filings, available on the Company`s website at
www.SunocoInc.com.

-END OF TEXT, CHARTS FOLLOW-

Sunoco, Inc.
2009 Third Quarter and Nine-Month Financial Summary
(Unaudited)

Third Quarter 2009 2008*

Revenues $8,695,000,000 $15,152,000,000
Net Income (Loss) $(286,000,000 ) $576,000,000

Less: Net Income Attributable to Noncontrolling (Minority) Interests 26,000,000 27,000,000

Net Income (Loss) Attributable to Sunoco, Inc. Shareholders $(312,000,000 ) $549,000,000
Net Income (Loss) Attributable to Sunoco, Inc. Shareholders Per Share of Common Stock:
Basic $(2.67 ) $4.70
Diluted $(2.67 ) ** $4.70
Weighted-Average Number of Shares Outstanding (In Millions):
Basic 116.9 116.9
Diluted 116.9 ** 116.9

Nine Months

Revenues $22,339,000,000 $42,435,000,000
Net Income (Loss) $(256,000,000 ) $646,000,000

Less: Net Income Attributable to Noncontrolling (Minority) Interests 99,000,000 74,000,000

Net Income (Loss) Attributable to Sunoco, Inc. Shareholders $(355,000,000 ) $572,000,000
Net Income (Loss) Attributable to Sunoco, Inc. Shareholders Per Share of Common Stock:
Basic $(3.04 ) $4.89
Diluted $(3.04 ) ** $4.88
Weighted-Average Number of Shares Outstanding (In Millions):
Basic 116.9 117.0
Diluted 116.9 ** 117.1

* Restated to reflect the adoption of new accounting guidance concerning the accounting and reporting of noncontrolling (minority) interests. Net income attributable to noncontrolling (minority) interests relates to income from Sunoco Logistics Partners L.P. and SunCoke Energy`s Indiana Harbor cokemaking operations.
** 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, Except Per-Share Amounts)
(Unaudited)
Three Months Ended
September 30 June 30
2009 2008 2009
Refining and Supply:
Continuing operations $ (118 ) $ 398 $ (77 )
Discontinued Tulsa operations -- 26 (6 )
Retail Marketing 49 72 10
Chemicals (1 ) 19 --
Logistics 19 20 26
Coke 35 29 42
Corporate and Other:
Corporate expenses (6 ) 2 (15 )
Net financing expenses and other (12 ) (7 ) (11 )
(34 ) 559 (31 )
Special items (278 ) (10 ) * (24 ) **

Net income (loss) attributable to Sunoco, Inc. shareholders $ (312 ) $ 549 $ (55 )

Earnings (loss) per share of common stock (diluted):

Income (loss) attributable to Sunoco, Inc. shareholders before special items $ (.29 id="t6093253_6_19_10343"> 4,981
Long-term deferred income tax assets - 48,462
Debt issuance costs and other assets, net 3,105 3,186

Total assets $ 172,929 $ 213,792

LIABILITIES AND STOCKHOLDERS` (DEFICIT) EQUITY
Current liabilities:
Accounts payable $ 5,123 $ 4,270
Accrued expenses and other current liabilities 22,160 22,255
Current portion of long-term debt 8,088 6,407
Current portion of obligations under capital leases 61 24
Mandatorily redeemable, Series Z Preferred Stock, $.001 par value, $1,000 per share liquidation value; 57,000 shares authorized; 57,000 and 37,000 shares outstanding 57,000 37,000

Total current liabilities 92,432 69,956

Long-term debt 79,787 73,605
Long-term obligations under capital leases 38 24
Other liabilities 14,323 11,909
Total liabilities 186,580 155,494

Commitments and contingencies

Stockholders` deficit:
Series A junior participating preferred stock, 700,000 shares authorized; no shares issued and outstanding
Common stock, $.001 par value; 25,000,000 shares authorized; 15,969,167 and 16,355,679 shares issued and outstanding 16 16
Additional paid-in capital 264,179 266,268
Accumulated other comprehensive loss, net of income tax (2,470 ) (1,787 )
Accumulated deficit (275,376 ) (206,199 )
Total stockholders` (deficit) equity (13,651 ) 58,298

Total liabilities and stockholders` (deficit) equity $ 172,929 $ 213,792

Additional financial data:

As of
September 29, 2009
Trailing twelve months $ 881,000
average unit volume

For the thirteen
weeks ended
September 29, 2009
Weekly per store $ 16,527
sales average
Total store weeks 5,521
Average check $ 7.31

For the thirteen For the thirty-nine
weeks ended weeks ended
September 29, 2009 September 29, 2009
Compents of comparable
store sales
System-wide transactions (2.1 %) (2.6 %)
System-wide average check (0.6 %) (0.2 %)
Company-owned restaurant (1.5 %) (3.0 %)
transactions
Company-owned restaurant (1.6 %) (1.0 %)
average check

Sunoco, Inc.
Thomas Golembeski (media), 215-977-6298
Bill Diebold (investors), 215-977-6764

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