-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WFiePw6hDH1kEqkrLjwLqzdjU2B52i/KPJmAYzgS/TJvHanbKiA8mfP+Y7O9T7uh NBTjUOAakRU974s5srKU/w== 0001036050-97-000412.txt : 19970630 0001036050-97-000412.hdr.sgml : 19970630 ACCESSION NUMBER: 0001036050-97-000412 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970624 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970627 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARCO CHEMICAL CO CENTRAL INDEX KEY: 0000819544 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 510104393 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09678 FILM NUMBER: 97631482 BUSINESS ADDRESS: STREET 1: 3801 WEST CHESTER PIKE CITY: NEWTOWN SQUARE STATE: PA ZIP: 19073 BUSINESS PHONE: 2153592000 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ---------------- Form 8-K CURRENT REPORT ---------------- Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): June 24, 1997 ---------------- ARCO CHEMICAL COMPANY -------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware -------------------------------------------------------------------- (State or other jurisdiction of incorporation) 1-9678 51-0104393 -------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 3801 West Chester Pike, Newtown Square, Pennsylvania 19073-2387 -------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (610)359-2000 --------------- Not Applicable -------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events. - ------ ------------ On June 24, 1997, ARCO Chemical Company (the "Company") announced a cost reduction program designed to achieve $150 million in annual savings. As part of the program, the Company intends to reduce the number of employee and contractor positions at the Company by 800 to 1,100, from a worldwide base of 5,300 positions. The changes are expected to be substantially in place by 1999. See also the Company's Press Release, dated June 24, 1997, filed as Exhibit 99 to this Report. Item 7. Financial Statements and Exhibits. - ------ --------------------------------- (c) Exhibits: 99 Press Release, dated June 24, 1997. -2- 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. ARCO CHEMICAL COMPANY /s/ Van Billet ----------------------------- Van Billet Vice President and Controller June 27, 1997 -3- EXHIBIT INDEX Exhibit Number Description - ------- ----------- 99 Press Release, dated June 24, 1997 EX-99 2 PRESS RELEASE, DATED JUNE 24, 1997 ARCO Chemical Company [LOGO APPEARS HERE] PUBLIC AFFAIRS NEWS 3801 West Chester Pike Newtown Square, PA 19073-2387 FOR RELEASE: Immediately ARCO CHEMICAL LAUNCHES PROGRAM TO REDUCE COSTS, STREAMLINE OPERATIONS WORLDWIDE Newtown Square, PA, June 24, 1997 -- ARCO Chemical announced today that it is implementing a program that will result in $150 million in annual cost savings. A key part of the savings will come from a reduction of 800 to 1,100 employee and contractor positions over the next few years, on a worldwide base of 5,300 positions. The changes are part of a broad initiative, discussed last month by CEO Alan R. Hirsig at the company's Annual Meeting of Stockholders, to build shareholder value, to increase efficiency, and achieve a double-digit percentage reduction in the company's fixed and controlled costs, which are roughly $750 million a year. The cost reductions are to be substantially in place by 1999. "Our drive is to be a highly competitive chemical company with leadership profitability, excellent growth prospects, and greatly enhanced value for all stakeholders, including shareholders, customers, and employees," Hirsig said. "Other steps we've taken to enhance shareholder value include setting significant stock ownership requirements for directors and executives; adopting a new financial measure, Return on Capital Managed (RCM), as a way to focus all parts of the organization on increasing the company's profitability; and raising the percentage of employee compensation that is linked to the company's financial success." (more) EXHIBIT 99 ARCO Chemical Launches Program/add 1 ARCO Chemical remains committed to profitable growth in its core businesses and continues its drive to introduce differential, value-added products that meet market needs. "Our program of cost reduction can be done at the same time we continue to grow the company and is consistent with our efforts to serve our customers," Hirsig added. A number of changes have already been implemented. These include the recent realignment of the company's business structure to speed commercialization of growth opportunities and better reflect the realities of the marketplace; creation of a Supply Chain organization to minimize raw material and logistics costs, reduce working capital, and better meet customer needs; and merging the Manufacturing and Engineering functions to achieve production economies. The restructuring effort will continue through the end of 1998. The company anticipates that a special charge to earnings will be taken later in 1997 to account for the costs of the program. The amount of the charge has not been determined. "Once we are through this transition, we will emerge as a company that is better prepared to grow, even more agile in its decision-making, and clearly focused on building value for shareholders," commented Hirsig. "Our ultimate goal is to be a highly competitive chemical company with excellent growth potential." ##### For further information, contact: Sallie D. Anderson, Communications (610) 359-5773, or Patricia D. Bartlett, Investor Relations (610) 359-3171. For a menu of ARCO Chemical's news releases and to retrieve a specific release, visit ARCO Chemical's website at http://www.arcochem.com on the Internet. To receive a press release by fax, call 800-758-5804; use code #062063. -----END PRIVACY-ENHANCED MESSAGE-----