McDonnell Douglas Quarterly Earnings Down From Last Year
ST. LOUIS (AP) _ McDonnell Douglas Corp. reported Thursday its first quarter earnings fell 30 percent, due in large part to the costs of the aircraft manufacturer’s early retirement program.
McDonnell Douglas said it earned $43 million, or $1.06 per share, during the first three months of the year, compared with $61.1 million, or $1.51 per share, in the same period a year earlier.
Sales totaled $2.99 billion, down from sales of just under $3 billion in the first quarter of 1986.
The company said a pretax charge of $66 million to cover the cost of the retirement program was the biggest factor in the earnings decline. The program was offered at four of the corporation’s component companies in the combat aircraft business.
Combat aircraft earnings also contributed to the decline. The company said earnings in that segment were down as a result of cost increases and lower profit margins in the F-15 Eagle program.
The company also reported increased research and development spending in the U.S. Air Force’s Advanced Tactical Fighter program.
Transport aircraft revenue was lower in the first quarter because three fewer tri-jets were delivered, the company said.
Transport aircraft earnings also fell because of the costs of developing the new MD-11 jetliner, an advanced DC-10 derivative scheduled to enter airline service in 1990.