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Boeing Earnings Surge 17 Percent

From Staff And Wire Reports

Boeing Co. and McDonnell Douglas Corp., which agreed last month to combine in a $13.3 billion merger, posted improved results Thursday for the final three month of 1996.

Boeing said profits rose 17 percent in the fourth quarter, and McDonnell Douglas turned in a profit compared with a year-earlier loss. The gains from both aerospace manufacturers reflected a rebound in the airline industry, big customers of both companies.

Boeing earned $254 million, or 75 cents a share, compared with $218 million, or 63 cents a share, in the same period a year earlier. Sales rose to $6.51 billion from $4.54 billion.

For the full year, Boeing earned $1.10 billion, or $3.19 per share, compared with $393 million, or $1.15 per share, in 1995. The 1995 figure included a special retirement charge. Sales rose to $22.68 billion from $19.52 billion.

Earnings in 1996 included results from Rockwell International’s aerospace and defense units, which were acquired Dec. 6.

McDonnell Douglas earned $207 million, or 98 cents a share, compared with a loss of $936 million, or $4.18 a share, during the same period a year earlier. Results for 1995 included a $1.8 billion accounting charge for the MD-11 trijet program.

For the full year, earnings were $788 million, or $3.64 a share, compared with a loss of $416 million, or $1.83 a share, in 1995.

In another earnings report Thursday:

Source Capital Corp. reported substantial increases in annual and quarterly incomes, based in large part on the sale of a shopping center in California.

Spokane-based Source earned $846,955, or 59 cents per share, for the year ended Dec. 31. In 1995, the company earned $643,745, or 44 cents per share.

Fourth-quarter net income was $414,434, or 29 cents per share, vs. $212,427, or 15 cents per share, for the same period in 1995.

Proceeds from the sale of the shopping center represented the bulk of the $541,075 netted from real estate and other transactions. The sale also reduced real estate owned by Source by 80 percent.

Company President D. Michael Jones said improving loan production increased loans outstanding at the end of the year to $26.1 million, a 120 percent jump over year-end 1995.

Assets grew 50 percent, from $20.4 million to $30.9 million.

Source, with offices in Portland and Seattle as well as Spokane, employs 10.