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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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FORM 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 6, 1997
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ARCO CHEMICAL 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)
1-9678 51-0104393
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(Commission File Number) (IRS Employer Identification No.)
3801 West Chester Pike, Newtown Square, Pennsylvania 19073-2387
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (610) 359-2000
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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.
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On October 6, 1997, ARCO Chemical Company (the "Company") announced
that it will take a pretax charge to earnings of $175 million ($116 million
after tax; $1.20 per share) in the third quarter 1997 to cover the costs
associated with its restructuring program and other actions. See also the
Company's Press Release, dated October 6, 1997, filed as Exhibit 99 to this
Report.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits:
99 Press Release, dated October 6, 1997.
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SIGNATURE
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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.
ARCO CHEMICAL COMPANY
/s/ Van Billet
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Van Billet
Vice President
and Controller
October 7, 1997
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EXHIBIT INDEX
Exhibit
Number Description
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99 Press Release, dated October 6, 1997
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EXHIBIT 99
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ARCO Chemical Company [LOGO]
PUBLIC AFFAIRS NEWS
3801 West Chester Pike
Newtown Square, PA 19073-2387
FOR RELEASE: Immediately
ARCO CHEMICAL COMPANY WILL TAKE $175 MILLION PRETAX CHARGE
IN THIRD QUARTER TO COVER RESTRUCTURING AND OTHER COSTS
Newtown Square, PA, October 6, 1997 -- ARCO Chemical (NYSE:RCM) announced
today that it will take a pretax charge of $175 million ($116 million after tax;
$1.20 per share) in the third quarter 1997 to cover the costs associated with
its previously announced restructuring program and other actions. Included in
the charge are costs related to work force reductions, facility closures, and
asset write downs.
ARCO Chemical's restructuring program, initiated in June 1997, will result
in the phased elimination of between 800 and 1,100 employee and contractor
positions in the company's worldwide operations.
Alan R. Hirsig, Chief Executive Officer, noted that ARCO Chemical's
restructuring plan, which will be substantially in place by the end of 1998, is
on track to achieve its goal of reducing the company's controllable costs by 20
percent, or $150 million annually.
"We remain dedicated to increasing shareholder value. The steps we are
taking are
(more)
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designed to strengthen our competitiveness and increase profitability. Our
restructuring program, along with other shareholder value initiatives, including
significant stock ownership requirements for our executives and directors, are
clearly focused on one objective: to build value for our shareholders," Hirsig
said.
ARCO Chemical is a leading worldwide manufacturer and marketer of PO and
derivatives and other intermediate chemicals. Its products are used in a wide
range of consumer and industrial goods, including automotive components, home
furnishings, paints and coatings, plastics, engine coolants, and reformulated
gasoline.
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Contact: Sami Ahmad, Investor Relations (610) 359-3171, or
Sallie Anderson, Media Relations (610) 359-5773
