Arco Profit Up 37% in Quarter on Rising Prices

Atlantic Richfield Co. said Monday that first-quarter profit rose 37% as rising gasoline prices, especially in California, boosted its refining earnings to the highest level in at least 10 years.

Los Angeles-based Arco, which is being acquired by BP Amoco, said profit from continuing operations, after gains and charges, rose to $172 million, or 53 cents a share, from $126 million, or 39 cents, a year earlier. It was expected to earn 29 cents, the average estimate of analysts polled by First Call Corp.

Arco’s sales of gasoline and diesel fuel rose, in part because of accidents at competitors’ refineries and other factors that sent gasoline prices soaring in California, where Arco makes 70% of its sales.

Refining and fuel sales earnings rose almost sevenfold. Arco earned $129 million from refining, up from $19 million in the first quarter of 1998. Of Arco’s 1,547 gasoline stations, 1,073 are in California, according to National Petroleum News.

Arco shares rose $1.25 to close at $85.19 on the New York Stock Exchange. U.S. shares of London-based BP Amoco rose $1.25 to $114.44, also on the NYSE. BP Amoco agreed to buy Arco on April 1 for $30.6 billion in stock and $4.3 billion in assumed debt.

At a Glance

Other earnings, excluding one-time gains and charges unless noted:

* Computer Sciences Corp.’s fiscal fourth-quarter profit rose 24%, spurred by a spate of new contracts for the third-largest U.S. computer services company. Net income rose to $116.8 million, or 72 cents a share, in the quarter ended April 2. The El Segundo-based company had profit from operations of $94 million, or 59 cents, a year earlier.

* Foodmaker Inc., the San Diego-based operator and franchiser of the Jack in the Box fast-food chain, reported record fiscal second-quarter net income of $13.6 million, or 35 cents per share, a 56% increase over last year’s results of $8.7 million, or 22 cents. Total revenue rose 22% to $322 million.