Crown reports 72% slide in profit Gasoline refiner also announces personnel changes

Earnings

October 30, 1998|By William Patalon III | William Patalon III,SUN STAFF Sun Staff writer M. William Salganik contributed to this article.

Crown Central Petroleum Corp., a Baltimore-based refiner and marketer of gasoline, reported yesterday a 72.5 percent drop in third-quarter profit on a 25 percent decline in revenue.

Crown also said yesterday that Edward L. Rosenberg, executive vice president in charge of supply and transportation, will leave the company at the end of the year "to be actively involved in family business interests."

Frank B. Rosenberg, senior vice president of marketing, will add the responsibility for wholesale sales and terminals.

Frank Rosenberg and Edward Rosenberg are sons of Crown's chairman, Henry A. Rosenberg Jr.

William A. Wolters has been named senior vice president, supply and transportation, to replace Edward Rosenberg.

Further details on the personnel moves were not immediately available.

Crown, which operates two refineries in Texas and 342 Crown gasoline station-convenience stores in the East, Southeast and Southwest, said big supplies of oil left from last winter coupled with active refining industrywide squeezed refining margins.

Crown said it earned $3.1 million, or 31 cents per share, in the three months ended Sept. 30, compared with earnings of $11.3 million, or $1.16 per share, for the same period the year before.

Revenue fell to $312.5 million from $414.5 million in the 1997 quarter.

"Refining results, given the weak operating environment of the third quarter, were very positive," said Rosenberg, Crown's chairman, in a statement. "CrownCen Marketing continues to demonstrate excellent performance and merchandise sales growth."

Crown said its retail marketing segment results were positive for the quarter: Same-store merchandise sales were up 1.8 percent from the prior year; same-store gross retail gasoline margins jumped 36 percent for the quarter, while actual gallons sold fell 2 percent.

For the first nine months of the year, Crown reported a net loss of $12.8 million, or $1.30 per share, on revenue of $979.3 million. This compares with a net profit of $19.9 million, or $2.04 cents per share, on revenue of $1.2 billion for the same period in 1997.

Pub Date: 10/30/98

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