Ultramar DS trims staff, assets

Ultramar Diamond Shamrock Corp., San Antonio, plans to revamp its retail marketing, refining, and pipeline operations and support services. Jean Gaulin, president and CEO, said, "The restructuring will reduce costs and increase our customer focus." The firm plans to eliminate 466 positions and 14% of its stores to increase earnings before interest and taxes by $100 million in 1999 and $124 million in 2000. It will take a one-time, pre-tax charge of $130 million in the quarter ending June 30.

June 15, 1998

Ultramar Diamond Shamrock Corp., San Antonio, plans to revamp its retail marketing, refining, and pipeline operations and support services.

Jean Gaulin, president and CEO, said, "The restructuring will reduce costs and increase our customer focus."

The firm plans to eliminate 466 positions and 14% of its stores to increase earnings before interest and taxes by $100 million in 1999 and $124 million in 2000. It will take a one-time, pre-tax charge of $130 million in the quarter ending June 30.

UDS will regroup marketing into four operating regions and base most support services in San Antonio. It also will end its frequent-fueler programs.

The firm plans to reorganize some refining and pipeline operations. Earlier this year it launched refining productivity programs that are expected to save $35 million/year.

The restucturing plan will also involve the sale of some nonstrategic or underperforming pipeline assets.