Boeing and McDonnell Post Improved Results

Boeing Co. and McDonnell Douglas Corp., which agreed last month to combine in a $13.3-billion merger, posted improved results Thursday for the final three months of 1996.

Boeing said profit rose 17% in the fourth quarter, and McDonnell Douglas turned in a profit contrasted with a year-earlier loss. The gains from both aerospace manufacturers reflected a rebound in the airline industry, big customers of both companies.

Seattle-based Boeing earned $254 million, or 75 cents a share, compared with $218 million, or 63 cents a share, in the same period a year earlier. Sales rose to $6.51 billion from $4.54 billion.

Boeing President Phil Condit said the gains were largely the result of increasing sales, resolution of military and space contract issues, tax benefits from the previous year’s investment tax credits, reduced research and development expenses, and increased interest income.

Boeing ended the year with 717 new announced commercial airplane orders worth about $53 billion.

Boeing shares on Thursday lost $1.75 to close at $110.50 on the New York Stock Exchange. McDonnell Douglas was off $1.125 to close at $68.875.

For the full year, Boeing earned $1.10 billion, or $3.19 a share, compared with $393 million, or $1.15 a share, in 1995. Sales rose to $22.68 billion from $19.52 billion.

Earnings in 1996 included results from Rockwell International’s aerospace and defense units, which were acquired Dec. 6.

McDonnell Douglas, based in St. Louis, earned $207 million, or 98 cents a share, contrasted with a loss of $936 million, or $4.18 a share, during the same period a year earlier. Results for 1995 included a $1.8-billion accounting charge for the MD-11 trijet program. Revenue rose to $4.09 billion from $3.73 billion.

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