Northrop, McDonnell Sign $1.9-Billion Deal

Northrop Grumman Corp. said it signed a $1.9-billion contract with St. Louis-based McDonnell Douglas Corp. to make components for 80 McDonnell C-17 military transport aircraft over six years. The deal follows a new agreement between the Air Force and McDonnell Douglas to build an additional 80 C-17s by 2004. The company said the aircraft, the U.S. Air Force/McDonnell Douglas C-17 Globemaster III, is designed to carry large combat equipment and troops or humanitarian aid directly to small airfields anywhere in the world. Last week, aerospace giant Lockheed Martin Corp. announced plans to acquire Los Angeles-based Northrop Grumman in a deal worth $11.6 billion. Northrop stock rose $1.75 to close at $111.75; McDonnell Douglas added about 56 cents to close at $70.75. Both trade on the New York Stock Exchange.