Arco Chemical to Take 3rd-Quarter Charge

Arco Chemical Co. said it will take a third-quarter charge of $116 million, or $1.20 a share, for plant closings, job cuts and write-offs as part of a plan to reduce costs and boost its stock price. Arco Chemical announced the restructuring plan in May. In June, it said it would cut as many as 1,100 jobs, or about 20% of its work force, by the end of 1998, entailing an unspecified charge. The company was expected to earn 71 cents a share in the quarter, the average estimate of analysts. The plan, which the company said would help lower annual costs by $150 million, was in response to Arco Chemical’s flagging share price and disappointing earnings and has been viewed as a positive step, analysts said. Arco Chemical, based in Newtown Square, Pa., is 82.7% owned by Los Angeles-based oil company Atlantic Richfield Co. Arco Chemical shares rose $1.13 to close at $48.13 on the NYSE.