McDonnell Douglas Posts Loss
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ST. LOUIS — McDonnell Douglas Corp. today posted a loss of $1 million, or a penny a share, in the fourth quarter of 1990 as the nation’s biggest defense contractor absorbed the costs of canceling the A-12 jet program.
The company’s board of directors also slashed the quarterly dividend from 70.5 cents a share to 35 cents because of the poor earnings report and the need to invest more in several ongoing programs this year.
The $350-million writeoff for the A-12 was expected by stock analysts. McDonnell Douglas stock was up $1 a share at $41.75 at midday on the New York Stock Exchange.
The development of the A-12, the next generation jet for the Navy, was canceled by Defense Secretary Dick Cheney last month because of cost overruns and delays.
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