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PHILADELPHIA -- Sunoco Inc. reported net income of $242 million ($1.75 per share diluted) for the second quarter of 2005 vs. $234 million ($1.53 per share diluted) for the 2004 second quarter. For the first half of 2005, Sunoco reported net income of $358 million ($2.58 per share diluted) vs. net income of $323 million ($2.12 per share diluted) for the first half of 2004. All per-share amounts reflect the two-for-one stock split effected as a dividend on Aug. 1, 2005.
"Results continued to be very strong," said John G. Drosdick, Sunoco chairman and CEO. "Our second-quarter earnings represent a new record for the company and on a per-share basis, year-to-date earnings are up 22 percent vs. last year's then-record first half.
Retail Marketing earned $7 million in the second quarter of 2005 vs. $20 million in the second quarter of 2004. The decrease in results was due largely to lower retail margins for gasoline, partially offset by lower expenses and higher gains on asset divestments.
“While much improved from the 2005 first quarter, generally rising crude oil and wholesale gasoline prices have persistently squeezed retail margins throughout the first half of the year,” said Drosdick.
"In other matters, we continued our share repurchase program -- $61 million during the quarter and $131 million year to date -- and on Aug. 1, we completed a two-for-one stock split. We ended the quarter with $417 million of cash and a net debt-to-capital ratio, as defined in our revolving credit agreement, of 33 percent -- each improved from year-end 2004. We will continue to carefully use this financial capacity to both invest in and grow our asset portfolio and appropriately return cash to our shareholders."