76 Lubricants Announces Restructuring Plan
30 June 2000
Tosco Corp's Oil and Lubricants Company Tightens Belt in Preparation for Long-Term Sustainability During Soft Market
COSTA MESA, Calif. - 76 Lubricants, one of the leading lubricants manufacturers in the country, has made the strategic decision to restructure the company.By changing our current business model we are working toward long-term viability and continued profitability. This is a volatile time within the lubricants marketplace, and to respond to this volatility we have structured our company to compete successfully and to continue our phenomenal growth according to Garry Rooney, president of 76 Lubricants.
"By making difficult, yet necessary across-the-board aggressive changes in all areas of our business, we are reducing our cost of doing business by over 25 percent," said Rooney. "We accomplished this challenge through a restructuring plan that includes targeted employee downsizing, streamlined changes in operations and re-distribution of some product channels."
The decision to restructure comes at a time when much of the industry is in a tailspin over the high price of crude oil, tight supply of basestocks, a variety of mergers and acquisitions and most importantly a flat marketplace.
"Though we are still one of the fastest growing companies in the lubricants industry, we needed to ensure continued profitability and the ability for continued growth by eliminating costly and non-revenue producing functions and processes," said Rooney.
The restructuring will have a limited effect on customers. They will now benefit by an added corporate focus on domestic marketer services and streamlined processes with continued support of an experienced and technically trained sales force. Most importantly, they will have an increased confidence that the 76 Lubricants brand will continue to operate as a viable and effective leader in the lubricants industry.
"We had to make some very tough decisions. However, as a management team, we accomplished this challenge by staying true to the core ideology of the 76 Lubricants brand -- which is to provide quality and innovative lubricants products and services for our customers, while at the same time offering a professional and satisfying work environment for our most important asset -- our employees," said Rooney.
76 Lubricants' goal is to continue to drive the lubricants industry with innovation, technology and customer service.
Since 1890, 76 Lubricants Company has continually demonstrated its leadership in scientific, engineering and product innovation. The 76 Lubricants Company combines parent company Tosco Corp.'s resources with its own to deliver high quality lubricants and services. Based in Southern California, this division markets a full line of lubricants domestically and internationally including Guardol QLT(R) heavy-duty engine oil and the award winning 76 NASCAR(R) line of lubricants. By meeting and exceeding customer's product and service expectations, the 76 brand has become recognized and trusted for outstanding quality and performance.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements contained in this news release are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks and uncertainties. The words "believe," "expects," "could," "looks forward," and other similar expressions identify forward-looking statements. Important factors (but not necessarily the only important factors) that could cause the results to differ materially from those expected are: delay in completing a project or projects, operational difficulties, varying market conditions, actions of government, and other risks noted from time to time in the company's Securities and Exchange Commission and other filings. The company's forward-looking statements are expressed in good faith and believed to have a reasonable basis, but there can be no assurance that they will be achieved.