UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K
                                 CURRENT REPORT
                      Pursuant to Sections 13 and 15(d) of
                       the Securities Exchange Act of 1934



                                 August 27, 1998
                Date of Report (Date of earliest event reported)


                           FOSTER WHEELER CORPORATION
             (Exact Name of Registrant as Specified in its Charter)

      New York                  1-286-2                    13-1855904
      (State Of                 (Commission                (IRS Employer
      Incorporation)            File Number)               Identification No.)



                            Perryville Corporate Park
                              Service Road East 173
                            Clinton, N.J. 08809-4000
                     (Address of Principal Executive Office)







                                 (908) 730-4000
              (Registrant's Telephone Number, Including Area Code)



                                (Not Applicable)
                         (Former Name or Former Address,
                          if Changed Since Last Report)






Item 5.  Other Events

         Foster Wheeler Corporation (the "Corporation")  announced on August 27,
1998 that it  intends  to take a pre- and  after-tax  charge  of $175.0  million
relating to a waste-to-energy plant located in the Village of Robbins,  Illinois
(the "Robbins  Project") in the third quarter of fiscal 1998.  This charge fully
reserves for all asset impairments as well as financial guarantees.

         In 1996,  the  Corporation  completed the  construction  of the Robbins
Project.  A subsidiary of the Corporation,  Robbins Resource Recovery  Partners,
L.P. (the "Partnership"), is operating this facility under a long-term operating
lease  with the  Village  of  Robbins  as  lessor.  By  virtue  of the  facility
qualifying  under the  Illinois  Retail  Rate Law (the  "Retail  Rate Law") as a
qualified solid waste-to-energy  facility, it was to earn revenues from sales of
electricity to a utility at rates that were to be substantially  higher than the
utility's "avoided cost." Under the Retail Rate Law, the utility was entitled to
a tax credit against a state tax on its gross receipts and invested capital. The
State of  Illinois  was to be  reimbursed  by the  facility  for the tax  credit
beginning  after the 20th year  following the initial sale of electricity to the
utility.  The State has  repealed  the Retail  Rate Law insofar as it applied to
this facility.  Consequently,  the Partnership's  sales to the utility are being
made at the utility's  avoided cost, which is not sufficient to recover the cost
of operating the facility.

         As described in the Corporation's Quarterly Report on Form 10-Q for the
second  quarter of 1997 and its Annual Report on Form 10-K for fiscal 1997,  the
Corporation made an assessment of the factors having significant  bearing on the
Robbins Project  situation.  These included  consideration of the  noncancelable
contracts to:

          1.   Receive waste from the surrounding towns,

          2.   Operate the waste-to-energy plant, including maintenance, and

          3.   Deliver electricity under an agreement with Commonwealth Edison.

         At the time, the Corporation  believed that the unprecedented action of
the Illinois legislature to repeal the Retail Rate Law would be corrected within
a two-year  timeframe  either through  judicial relief or legislative  action by
giving  "grandfathered"  status to this project.  Furthermore,  the  Corporation
believed that if those initiatives were unsuccessful,  an alternative  purchaser
of electricity could be secured that would allow the Robbins Project to at least
break  even  after  1999.  Accordingly,  in  the  second  quarter  of  1997  the
Corporation  recorded  a charge  of $60.0  million  for  probable  losses  to be
incurred until 1999.  This period  represents the time during which these issues
were anticipated to be satisfactorily resolved.

         Recent  events have led the  Corporation  to  reevaluate  the long-term
profitability of the Project. These include the following:

          1.   No alternative  purchaser for the Robbins  Project's  electricity
               has been identified.

          2.   Due to deregulation of the power industry, there has been greater
               competition from independent  power producers  resulting in lower
               electricity rates.

          3.   The Robbins Project has been experiencing  higher operating costs
               than originally anticipated, particularly labor costs.

          4.   The Robbins  Project has received  lower  tipping fees from trash
               haulers under waste disposal contracts than originally projected.

          5.   It appears unlikely that the Corporation will have any successful
               resolution  of its claims in the  courts or any  relief  from the
               state legislature in the near term.

         As a result of this  assessment,  the Corporation has concluded that it
will not be able to recover the assets  currently  recorded  which relate to the
project.  Moreover,  it is unlikely  that the Project will  generate  sufficient
revenues to repay the Project debt, which is funded by the lease payments to the
Village of Robbins.  Accordingly,  the Corporation intends to record a charge of
approximately  $175.0  million in the third quarter of fiscal 1998  comprised of
$95.4 million for asset impairments and $79.6 million under guarantees for which
the Corporation is liable.

         The charges against assets comprise the following:

          1.   $15.6 million - Unamortized portion of the buyout of Reading, the
               original partner in the Robbins Project.

          2.   $48.3  million -  Prepaid  lease  costs  and other  miscellaneous
               costs.

          3.   $22.9 million - Boiler modifications made in 1997 and 1998.

          4.   $8.6 million - (a) Cost of transfer  station that processes waste
               for the plant and (b) Equity  investment  by FW Robbins  Inc.,  a
               subsidiary  of the  Corporation,  in Skyline  Disposal  Co. Inc.,
               which delivers waste to the Robbins Project.

         The charges under guarantees for which the Corporation is liable are as
follows:

          1.   $55.3  million  -  required  contribution  to fund  debt  service
               reserves which is expected to be made by the year 2000.

          2.   $24.3   million  -  guarantees   of  future  lease  and  interest
               obligations of the Partnership.

         Because  the  Corporation's  financial  exposure  has been  limited  to
certain  guarantees and funding  commitments,  the provision for losses has been
limited to the  amount of these  guarantees  and  commitments.  The  Corporation
currently  intends to continue to operate the Robbins Project in accordance with
the terms of its contractual  obligations,  although it may continue to generate
operating losses.

         This  Current  Report on Form 8-K contains  forward-looking  statements
regarding  future  performance.   Forward-looking   statements  are  beyond  the
Corporation's  ability  to  control  and in many  cases the  Corporation  cannot
predict what factors could cause actual results to differ  materially from those
indicated in the forward-looking statements.  These factors include, but are not
limited to, monetary and fiscal policies worldwide, significant changes in trade
policies,  changes in project  schedules  and  failure to obtain  releases  from
clients.  The  Corporation's  documents  filed with the SEC  identify  important
factors,  which  could  cause  actual  results to differ  materially  from those
indicated in the forward-looking statements.








                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                       FOSTER WHEELER CORPORATION


DATE:  August 27, 1998                 By: /s/ David J. Roberts
                                       ------------------------
                                       David J. Roberts
                                       Vice Chairman and Chief Financial Officer