McDonnell Douglas names CEOMcDonnell Douglas Corp. named...

BUSINESS DIGEST

September 27, 1994

McDonnell Douglas names CEO

McDonnell Douglas Corp. named Harry C. Stonecipher as chief executive and president yesterday, ending 102 years of family leadership and capping a five-year restructuring that has restored the St. Louis-based aerospace company to health.

Mr. Stonecipher, 58, was chairman and chief executive of the Sundstrand Corp., a maker of aircraft components and industrial power systems in Rockford, Ill., that has come back under his leadership from a devastating military overbilling-fraud scandal in the late 1980s.

Mr. Stonecipher replaces John F. McDonnell, the son of James McDonnell, the founder of McDonnell Aircraft, who will remain as chairman.

Lehman lays off third of staff

Lehman Bros. Inc., struggling against sharply lower profits, laid off one-third of its retail brokerage work force yesterday and said it would eliminate free lunches for its traders and salespeople.

A Lehman spokesman refused to comment on the layoff of 100 brokers, which reduces the company's domestic brokerage force to about 200.

But a source close to the Wall Street investment bank said the reductions were part of a restructuring aimed at refocusing its brokerage business on its strengths.

DavCo buys franchisee's stock

DavCo Restaurants Inc. said yesterday it acquired all stock of Southern Hospitality Corp., a Wendy's International Inc. franchisee with 34 restaurants in the Nashville, Tenn. area, for an undisclosed amount of cash, plus assumed liabilities.

For the year ended September 1993, Crofton-based DavCo, the world's largest franchisee of Wendy's International, had restaurant sales of $153 million, while Southern Hospitality had sales for the year that ended May 31 of $32.4 million.

DavCo currently operates 174 restaurants in Maryland, northern Virginia, Washington, St. Louis and central Illinois.

Coca-Cola ups Russia investment

Furthering an aggressive push into a market long dominated by Pepsi, the Coca-Cola Co. announced plans yesterday for more investment in Russia.

Coke and two international bottling partners plan to put an additional $100 million into the Russian market during the next three years, the Atlanta-based soft drink giant said.

The additional money will bring Coca-Cola's total investment in Russia to about $240 million.

Company plans gene therapy trials

Genetic Therapy Inc. has initiated a Phase I/II clinical trial using gene therapy to treat cystic fibrosis, the Gaithersburg company said yesterday.

Genetic Therapy's stock closed at $8.125 yesterday, down 62.5 cents.

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