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  # you use strict do you?
  my $arg1= "foo";
  my $file1="bar";
  my @array1;
  file_processing();
  foreach (@array1) { process( $_); }

  my $arg1= "foo";
  my $file1="bar";
  my @array1=  file_processing( $arg1, $file1);
  foreach (@array1) { process( $_); }

sub file_processing {
  my( $arg, $file)= @_;                        # added
  my @array;                                   # added
...
  close FILE;
  return @array;                           # added
  }