McDonnell Douglas reports lossMcDonnell Douglas Corp. has...


January 22, 1993

McDonnell Douglas reports loss

McDonnell Douglas Corp. has reported a net loss of $781 million for 1992 because of a $1.5 billion charge against earnings to provide for retiree health benefits. The St. Louis-based aerospace giant had said it planned to take the charge in 1993 to accommodate new accounting rules.

The company said it will lay off 4,000 more employees at its Douglas Aircraft Co. unit this year because of depressed aircraft sales. Douglas President Bob Hood told employees of the pending cuts yesterday.

"Production rates will be down. We just don't need as many people to build fewer planes," said spokesman John Thom.

Since July 1990, employment at Long Beach, Calif.-based Douglas has fallen from 52,000 to little more than 30,000. Some 19,000 Douglas workers are involved in commercial aircraft production, and another 11,000 are employed on the Air Force C-17 cargo jet program.


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