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CAMPBELL PLEDGES IMPROVEMENT AT SUN COMPANY

 CAMPBELL PLEDGES IMPROVEMENT AT SUN COMPANY
 PHILADELPHIA, Pa., May 7 /PRNewswire/ -- "My pledge to you this day


is that we will justify your faith and will meet your expectations," Robert H. Campbell told stockholders at Sun Company's (NYSE: SUN) annual meeting, held today in Philadelphia.
 Campbell, Sun's chief executive officer and president, was also elected chairman at an organizational meeting of the board following the annual meeting.
 Acknowledging that "the gap between our current financial performance and acceptable financial performance is tremendous," Campbell itemized the actions Sun has taken to return to profitable operation. The list included:
 -- the company's 1991 downsizing and restructuring,
 -- the decision to exit the real estate business on a controlled disposition basis,
 -- the reduction of Sun's ownership of its Canadian subsidiary, Suncor,
 -- the sale of some coal assets,
 -- the tighter focusing of Sun's international exploration and production activities,
 -- the consolidation of the corporate and refining-marketing headquarters in Philadelphia, and
 -- the revision of executive compensation to make it more aligned with company performance.
 But Campbell also said that, despite the poor earnings picture -- Sun lost $21 million in the first quarter -- "our cash flow has been robust enough to cover our dividend and capital expenditures, our divestment policy looks to roll over non-performing assets, our debt ratio is comfortably below 30 percent, and our Single-A credit rating has not faltered. All in all, we have maintained a conservative balance sheet. We have proved we can live within our means and still have access to the resources we need as growth opportunities come along....
 "So please understand and remember two things," he said. "The first is that our financial foundation is solid. The second is that our income generation is terrible, and we are not going to let it stay that way for long. We must boost our earnings, our return on equity, and our optimism. And I know the steps we've taken and continue to take are pointing us in the right direction."
 Official business of the meeting included the election of the 14 nominees as board members, the appointment of Coopers & Lybrand as independent accountants, and the rejection of a shareholder proposal seeking to require Sun to adopt the so-called "Valdez Principles." In its proxy statement, the company said it "shares the concern of all its shareholders for the protection of the environment," but "has already adopted its own comprehensive health, environmental and safety policy which is consistent with the overall objectives of the Valdez Principles."
 Sun Company is an energy company with interests in U.S. and Canadian petroleum refining and marketing, U.S. coal and coke production, synthetic crude oil production in Canada, and crude oil and natural gas exploration and production outside the United States. Branded marketing is carried out under the Sunoco brand in the United States and Canada and also under the Atlantic brand in the United States. Sun Company trades on the New York Stock Exchange and other stock exchanges with the symbol "SUN."
 /delval/
 -0- 5/7/92
 /CONTACT: Bud Davis (media), 215-977-3485, or Tim Hughes (investors), 215-977-6544, both of Sun Co./
 (SUN) CO: Sun Company Incorporated ST: Pennsylvania IN: OIL SU:


CC -- PH020 -- 7614 05/07/92 12:13 EDT
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Publication:PR Newswire
Date:May 7, 1992
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