said Monday its equity income would be reduced by $39 million in the fourth quarter, stemming from a $95 million pre-tax earnings charge taken by its subsidiary
Equistar Chemicals LP
Based in Houston, Lyondell also said it would incur a non-cash pre-tax loss of about $35 million, stemming from steps made to improve its inventory operations. Those moves generated more than $80 million in additional cash flow in 1999, the company said.
Lyondell, which has a 41% stake in Equistar, said the charge was the result of a previously announced decision to shut down some of Equistar's polymer reactors and to consolidate some of Equistar's activities with those of Lyondell.
Lyondell is the world's largest producer of propylene oxide and a leading supplier of propylene oxide derivatives. Equistar manufactures ethylene, propylene and polyethylene.