BP Amoco Profit Rises 19%; Job Cuts Planned

BP Amoco said profit rose a better-than-expected 19% in the second quarter to $1.37 billion, or 13 cents a share, after oil prices surged and benefits from the integration of BP Petroleum and Amoco Corp. began to materialize. Chief Executive John Browne, who promised to cut $4 billion in expenses over three years after BP acquired Amoco in December, also said the company will cut as many as 14,500 jobs by the end of the year, 4,500 more than previously forecast. Cost cuts added $550 million to the latest results, BP said, more than offsetting a $350-million decline from shrinking margins from refining and chemicals. The earnings gain exceeded analysts’ forecasts of a 9% increase and outshone results of the U.S.’ five leading oil companies, whose profit fell 18% on average. Browne also said the company still is on track to complete the purchase of Atlantic Richfield Co. of Los Angeles this year, which is expected to lead to an additional $1 billion of savings. BP Amoco American depositary receipts fell 75 cents to close at $117.50 on the NYSE.