SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 15, 1999
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ATLANTIC RICHFIELD COMPANY
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
1-1196 23-0371610
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(Commission File Number) (IRS Employer
Identification No.)
515 South Flower Street, Los Angeles, California 90071
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (213) 486-3511
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Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
Press Release dated January 15, 1999, announcing ARCO's 1998 fourth
quarter special charges are expected to total $890 million.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
ATLANTIC RICHFIELD COMPANY
/s/ ALLAN L. COMSTOCK
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Allan L. Comstock
Vice President and Controller
Dated: January 15, 1999
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ARCO [LOGO] 515 South Flower Street N E W S
Los Angeles, CA 90071-2201
Telephone (213) 486 3384
Facsimile (213) 485 0169
FOR IMMEDIATE RELEASE January 15, 1999
ARCO EXPECTS 1998 FOURTH QUARTER
SPECIAL CHARGES OF $890 MILLION
LOS ANGELES - ARCO (NYSE: ARC) announced today that after-tax special
charges in the 1998 fourth quarter are expected to total $890 million.
The net charge includes asset writedowns, restructuring costs, and a
tax refund.
The asset writedowns are a result of investment impairments totalling
$790 million after tax and primarily related to expectations of lower
crude prices. The properties involved include some assets acquired as
part of the Union Texas Petroleum (UTP) purchase and other assets in
the UK North Sea, Middle East and North Africa. Essentially all of
the oil and gas properties impacted are overseas.
The charges include restructuring costs of $180 million after tax for
the global cost reduction program ARCO announced in October 1998. The
program is designed to reduce before-tax costs by more than $500 million
by 2000. ARCO said 1,200 employees, up from the original estimate of 900,
will be terminated as part of the program. In addition to the cost
reduction program, ARCO announced in December that its capital spending
plans for 1999 call for reduced spending worldwide. The company said it
expects to spend $2.7 billion worldwide in 1999, down 25% from the 1998
spending level.
Also included in the 1998 fourth quarter special items will be a net
benefit of $80 million, which includes a federal income tax refund in
excess of $100 million.
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For further information: News Media: Linda G. Dozier (213)486-3384;
Investors: Eden Warner (213)486-1511 or David De Sonier (213)486-1811.
E-mail: [email protected]
[Some of the matters discussed in this news release are forward-looking
statements that involve risks and uncertainties. Actual results could
differ materially based on numerous factors including the ability to
achieve projected cost reductions consistent with operating requirements,
industry and general economic conditions and other risks detailed from
time to time in the company's reports to the Security Exchange Commission,
including the 1997 report on Form 10-K.]
Copyright c 1997 - Atlantic Richfield Company -- All Rights Reserved
ARCO 515 South Flower Street, Los Angeles, CA 90071-2256 (213) 486-3511
