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ARCO CHEMICAL REPORTS IMPROVED 1992 RESULTS

 NEWTOWN SQUARE, Pa., Jan. 21 /PRNewswire/ -- ARCO Chemical Company (NYSE: RCM) today reported 1992 net income of $195 million, or $2.03 per share.
 In 1991, net income was $188 million, or $1.96 per share. Net income in 1992 included a $56 million, or $0.58 per share, after-tax charge associated with the divestiture of the company's Korean joint venture and a net after-tax charge of $2 million, or $0.02 per share, for the cumulative effect of the previously announced adoption of new accounting standards related to postretirement benefits and income taxes. Results in 1991 included an after-tax benefit of $101 million, or $1.05 per share, primarily from business interruption insurance, and an after-tax charge of $15 million, or $0.16 per share, related to a cost reduction program.
 For the quarter ended Dec. 31, 1992, net income was $48 million, or $0.50 per share, as compared with $68 million, or $0.71 per share, for the fourth quarter 1991. Fourth quarter 1991 results included an after- tax benefit of $41 million, or $0.43 per share, primarily from business interruption insurance.
 Alan R. Hirsig, president and chief executive officer, said, "In the United States, economic conditions improved only modestly while the economies in Europe continued to deteriorate throughout the year. Nevertheless, our earnings from operations in 1992 were up substantially after adjusting for the income recorded from business interruption insurance in 1991. Sales volumes for all major product groups were higher, even in Europe. We are particularly pleased with the growth and improved profitability of our propylene oxide (PO) derivatives which are strategically important to us as we increase the amount of PO consumed internally."
 Volumes and margins for PO and derivatives were higher in fourth quarter 1992 than in fourth quarter 1991. Increased MTBE margins in the Americas were partially offset by MTBE margin declines in Europe, which fell to their lowest level in nearly two years. Depreciation and interest charges were up $5 million and $8 million, respectively, due to the successful startup of the company's new propylene oxide/styrene monomer plant in the latter part of the year. The effective tax rate for the fourth quarter 1992 of 11.1 percent is primarily due to lower state and foreign income taxes and the 1992 current year effect of accounting method changes for income taxes and post-retirement benefits.
 ARCO CHEMICAL COMPANY
 Selected Financial Data
 (Millions of Dollars except per share data)
 Three Months Ended Year Ended
 Dec. 31 Dec. 31
 (Unaudited)
 1992 1991 1992 1991
 Sales and other operating
 revenues $ 780 $ 747 $3,098 $2,837
 Business interruption
 insurance --- 63 2 153
 Total revenues 780 810 3,100 2,990
 Costs and other operating
 expenses 609 616 2,343 2,283
 Gross profit 171 194 757 707
 Selling, general and
 administrative expenses 67 65 233 238
 Research and development 19 18 67 64
 Cost adjustment related to
 plant incident --- (6) --- (18)
 Cost reduction program --- --- --- 25
 Operating income 85 117 457 398
 Loss on asset disposition --- --- (56) ---
 Interest expense (29) (21) (79) (79)
 Other income (expense), net(A) (2) 10 --- ---
 Income before income taxes and
 cumulative effect of changes
 in accounting principles 54 106 322 319
 Provision for income taxes 6 38 125 131
 Income before cumulative effect
 of changes in accounting
 principles 48 68 197 188
 Cumulative effect of changes
 in accounting principles for:
 postretirement benefits --- --- (20) ---
 Income taxes --- --- 18 ---
 NET INCOME $ 48 $ 68 $ 195 $ 188
 Net income per common share $0.50 $0.71 $ 2.03 $ 1.96
 (A) Primarily interest income, results from equity and other investments, and foreign exchange gains and losses.
 The effective full year 1992 tax rate is 38.8 percent.
 Depreciation/amortization expense for the years ended 12/31/92 and 12/31/91 was $199 million and $164 million, respectively.
 ARCO CHEMICAL COMPANY
 SALES VOLUMES STATISTICS
 Three Months Ended Year Ended
 Dec. 31 Dec. 31
 (Unaudited)
 1992 1991 1992 1991
 PO and Derivatives 821 755 3,055 2,729
 (mm lbs.)
 TBA and Derivatives 275 277 1,092 996
 (mm gals.)
 SM and Derivatives 369 372 1,434 1,278
 (mm lbs.)
 /delval/
 -0- 1/21/93
 /CONTACT: Gerald T. Davis (media), 215-359-3198, or Marcia H. Gesser (investors), 215-359-3382, both of ARCO Chemical/
 (RCM)


CO: ARCO Chemical Company ST: Pennsylvania IN: CHM SU: ERN

MJ -- PH028 -- 7433 01/21/93 12:50 EST
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Date:Jan 21, 1993
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