Guy Norris/LOS ANGELES
INCREASED INCOME from the F-15 and C-17 programmes have helped McDonnell Douglas (MDC) to record operating earnings of $328 million in the first six months of 1995 - a 21% increase over the same period in 1994, when net profits were $272 million.
Total revenue for the first six months totaled $7.25 billion, compared with $6.2 billion in 1994, most of the increase coming from higher deliveries of MD-11s, MD-80s and MD-90s, which resulted in a revenue increase, to $2.3 billion, from $1.4 billion over the same period of 1994. The military-aircraft segment generated record operating profits of $415 million on a turnover of $3.9 billion for the first half of 1995, compared with $319 million on revenues of $3.7 billion in the first six months of 1994. Most of this turnover increase is attributed to the F-15 programme, which also contributed to higher profits for the quarter, along with the C-17.
Although the overall military-aircraft profit picture for the first six months is good, earnings in the second quarter dipped slightly, to $205 million, from the record $210 million reported earlier this year. Some of this was attributed to an $18 million write-off on the design work for the modified KDC-10 tanker for the Royal Netherlands Air Force.
Commercial operating earnings were slightly up for the six months, to $33 million, against $27 million in the same period of 1994, reflecting increased sales of spare parts and the sale of two twinjets previously on lease.
In the first six months of 1995, MDC's Douglas Aircraft division has delivered 11 MD-80s, seven MD-90s and 11 MD-11s, an increase of five twinjets and four tri-jets over the same period of 1994. The company also took orders for five MD-80s and two MD-11s in the second quarter of 1995, although it notes that "...recently announced purchases by Saudi Arabian Airlines of 29 MD-90s and four MD-11s have not yet been included in orders, or reported backlog, pending the finalisation of the order".
Up until 30 June, 1,128 MD-80/ 90s had been delivered, 110 were on firm order and option, and reserves were held on a further 110. At the same date, 140 MD-11s had been delivered, 22 were on firm order and 71 were optioned.
The missiles, space and electronic-systems businesses posted six months of operating earnings of $116 million, down from $140 million in the same period in 1994. This is mainly because of "increased costs related to the impending closure of a Florida missile facility", says MDC.
Source: Flight International
