-----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, E1SysprLV2MMyAdAqIUn1Cl4c7bJ/Gfz7jjZAPOXqxvB4Zxc+A1nTHVwZocuxDL9 wc3FGbCQTvSfjZDseO063w== 0000899243-98-000454.txt : 19980327 0000899243-98-000454.hdr.sgml : 19980327 ACCESSION NUMBER: 0000899243-98-000454 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980313 ITEM INFORMATION: ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980326 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LYONDELL PETROCHEMICAL CO CENTRAL INDEX KEY: 0000842635 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 954160558 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-10145 FILM NUMBER: 98574588 BUSINESS ADDRESS: STREET 1: 1221 MCKINNEY ST STREET 2: STE 1600 CITY: HOUSTON STATE: TX ZIP: 77010 BUSINESS PHONE: 7136527200 MAIL ADDRESS: STREET 1: 1221 MCKINNEY ST STREET 2: SUITE 1600 CITY: HOUSTON STATE: TX ZIP: 77010 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 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): MARCH 13, 1998. --------------- LYONDELL PETROCHEMICAL COMPANY ------------------------------ (Exact name of registrant as specified in its charter) Delaware -------- (State or Other Jurisdiction of Incorporation) 1-10145 95-4160558 (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER IDENTIFICATION NO.) 1221 MCKINNEY STREET, SUITE 1600, HOUSTON, TEXAS 77010 ------------------------------------------------------------------ (Address of principal executive offices) (Zip Code) (713) 652-7200 -------------- (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) NOT APPLICABLE -------------- (Former Name or Former Address, if Changed Since Last Report) ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT. Pursuant to the terms of the Partnership Agreement with Millennium Chemicals Inc. ("Millennium"), Lyondell Petrochemical Company (the "Company") and Millennium are required to jointly select the independent accountants for Equistar Chemicals, LP ("Equistar"), the Company's petrochemical joint venture which was formed December 1, 1997. The management of the Company and Equistar, with the approval of the Company's audit committee and the Equistar Partnership Governance Committee, solicited proposals for the Company and Equistar's annual audits from several independent accounting firms. In that process, the Company requested that Coopers & Lybrand L.L.P. ("Coopers and Lybrand") and Price Waterhouse LLP ("Price Waterhouse") submit a joint proposal because of their announcement of a plan to merge. Coopers & Lybrand are the Company's present independent accountants and Price Waterhouse are the independent accountants for Millennium. It is the view of the Company's management that the firm that serves as independent accountants for Equistar should also serve as the independent accountants for the Company because of the materiality of Equistar to the Company. As a result of this process, the Company's audit committee and the Equistar Partnership Governance Committee approved management's recommendations of the selection of Coopers & Lybrand and Price Waterhouse jointly as the independent accountants for the Company and Equistar. Although such selection anticipates the merger of Coopers & Lybrand and Price Waterhouse, the Company intends to utilize both firms regardless of the outcome of the plan to merge. ITEM 5. OTHER EVENTS. On March 25, 1998, the Company issued a press release detailing earnings and cost reduction goals. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (a) Exhibits Exhibit Document ------- -------- 99 Press Release dated March 25, 1998. EXHIBIT INDEX Exhibit Number Document - -------------- -------- 99 Press Release Dated as of March 25, 1998. 3 SIGNATURES 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. Dated: March 26, 1998 LYONDELL PETROCHEMICAL COMPANY By: /s/ KERRY A. GALVIN -------------------- Kerry A. Galvin Chief Corporate Counsel and Corporate Secretary 4 EX-99 2 PRESS RELEASE [LYONDELL LOGO APPEARS HERE] LYONDELL DETAILS EARNINGS AND COST REDUCTION GOALS HOUSTON, March 25, 1998 -- Lyondell Petrochemical Company (NYSE:LYO) has set a goal to grow earnings per share by 10% per year on a 5-year rolling average, Dan F. Smith, Lyondell's President and Chief Executive Officer told a group of securities analysts visiting the company in Houston. This is from a base of $2.63 per share, which was the average for the 5-year period 1993-1997. The current estimates for Lyondell's earnings per share by the investment community are $2.25 for 1998 and $2.11 for 1999. "If the investment community estimates for 1998 are correct, we would have to earn substantially more than they are estimating for1999 to achieve our goal," Smith said. "While we cannot control the petrochemical cycle, we believe that the actions we have taken to reposition our petrochemicals and refining businesses and strengthen our financial position gives us more control over earnings per share," Smith said. Lyondell also has set significant cost reduction and revenue enhancement targets. As previously announced, the addition of Occidental to the Equistar joint venture is expected to generate pre-tax profit improvement synergies of more than $275 million annually by year-end 2000. In addition, Lyondell's other major joint venture, LYONDELL-CITGO Refining Company Ltd. expects to improve annual pre-tax profits by more than $150 million in 5 years. "The Company is well positioned from a cash flow standpoint at this point in the cycle to take advantage of investment opportunities both internally and externally," said Smith. # # # For information, contact: - ------------------------- Media - Jackie Wilson (713) 652-4596 Investors - Kevin DeNicola (713) 652-4590 The statements in this release relating to matters that are not historical facts are forward-looking statements that involve risks and uncertainties, including, but not limited to, future global economic conditions, production capacity, competitive products and prices and other risks and uncertainties detailed in the Securities and Exchange Commission filings of Lyondell. Lyondell Petrochemical Company is a major chemical and refining company, with majority ownership positions in the premier olefins, polymers and refining companies in North America. Lyondell is: . The largest producer of ethylene, propylene and polyethylene in North America and a leading producer of high value-added specialty polymers, color concentrates and polymeric powder through its interest in Equistar Chemicals, LP. . One of the largest and most profitable refiners in the United States, processing very heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel, through its 58.5% interest in LYONDELL-CITGO Refining Company Ltd. . The third-largest methanol producer in the U.S., through its 75% interest in Lyondell Methanol Company LP. 1 -----END PRIVACY-ENHANCED MESSAGE-----