P.M. BRIEFING : McDonnell Still No. 1 in Defense Contracts; Tenneco Falls to 21st

McDonnell Douglas Corp. is still the nation’s biggest defense contractor, but Tenneco Inc. has plummeted from fourth to 21st on the Defense Department’s list of arms makers, the Pentagon said today.

The department released its 1989 totals of prime contract awards to companies, showing St. Louis-based McDonnell Douglas with $8.6 billion of work. The defense giant, which builds fighter jets, cruise missiles, attack helicopters and other weaponry, also topped the fiscal 1988 list.

General Dynamics Corp., also of St. Louis, with $7.0 billion in Pentagon work, and Fairfield, Conn.-based General Electric Co., with $5.8 billion, retained their holds on the second and third defense-contracting positions.

Houston-based Tenneco, which builds Navy aircraft carriers and submarines, was in fourth position at $5.05 billion in 1988 but dipped to 21st last year with only $915.9 million in military work. The Navy is winding up production of Los Angeles-class nuclear attack subs and is holding the line at its current level of 14 aircraft carrier battle groups.

Tenneco was replaced in fourth place in the list by Raytheon Co.

Rounding out the top 10 defense contractors last year were General Motors Corp. ($3.7 billion), Burbank-based Lockheed Corp. ($3.7 billion), Hartford, Conn.-based United Technologies Corp. of ($3.6 billion), Bethesda, Md.-based Martin Marietta Corp. ($3.3 billion), Boeing Co. of Seattle, ($2.9 billion), and Bethpage, N.Y.-based Grumman Corp. ($2.4 billion).