SUN RESTRUCTURING AIMS TO SAVE $100 MILLION/YEAR

Sun Co. is preparing to map a restructuring program designed to achieve pretax savings of at least $100 million/year starting in 1992. The focus will be on consolidating and simplifying U.S. refining and marketing operations and corporate activities. The company also is studying options for its real estate subsidiary. Sun Chairman Robert McClements Jr. said the goal for Sun Refining & Marketing Co. is to create a company that can maneuver quickly and reliably, taking advantage of a volatile

Aug. 12, 1991

Sun Co. is preparing to map a restructuring program designed to achieve pretax savings of at least $100 million/year starting in 1992.

The focus will be on consolidating and simplifying U.S. refining and marketing operations and corporate activities. The company also is studying options for its real estate subsidiary.

Sun Chairman Robert McClements Jr. said the goal for Sun Refining & Marketing Co. is to create a company that can maneuver quickly and reliably, taking advantage of a volatile market.

"With this restructuring and our continuous improvement processes, we will have a leaner, less complex organization that is better integrated and more responsive," McClements said.

Specific actions have not been decided, but a "substantial" reduction in force is certain. An estimate of the charge to earnings won't be available until completion of restructuring studies late in the third quarter.

McClements said, "Because the outlook for real estate has not improved, we are identifying strategic options for our real estate businesses and have retained Bankers Trust and Lehman Bros. to assist us. We are interested in reducing our ownership interest in real estate by at least 50%."