Arco to cut deeper in jobs and 1999 capex
Arco said it will cut 1,200 jobs, instead of the 900 announced earlier, and take an after-tax charge of $ 890 mm for
the fourth quarter due to low crude oil prices and asset writedowns.
Arco said the reorganisation would reduce costs by $ 500 mm by 2000. Arco also cut 1999 capital spending by 25 % to $
2.7 bn world-wide.
Asset writedowns of $ 790 mm result from investment impairments pegged to expectations of lower crude prices, the
company said.
"The properties involved include some assets acquired as part of the Union Texas Petroleum purchase and other assets
in the UK North Sea, Middle East and North Africa," Arco said.
Arco says the global cost-reduction restructuring plan it announced in October will cost $ 180 mm after taxes.
There is also a net benefit of $ 80 mm expected in the fourth quarter. This includes a federal income tax refund of
more than $ 100 mm.
