Boeing Posts Loss, Braces for Worse

Boeing Co. on Tuesday reported a fourth-quarter loss, which the Seattle-based jet maker blamed on the costs of taking over McDonnell Douglas and on production snarls in Boeing’s jetliner assembly plants.

Company officials warned that Boeing’s troubles are not yet over, with production problems yet to solve and continuing pressure to keep aircraft prices low. There also is uncertainty over whether Asian airlines will delay or cancel aircraft orders due to that region’s financial crisis.

President Harry Stonecipher said Boeing is in constant contact with its Asian customers regarding the region’s economic problems. “We are concerned about this matter.”

The fourth-quarter loss of $498 million, or 51 cents a share, contrasts with a profit of $444 million or 46 cents on a diluted basis, for the final quarter of 1996.

Boeing’s sales for the quarter were $11.7 billion, up 17.5% from $10 billion a year ago. The higher sales were due to more deliveries across product lines, including commercial jets, the company said.

Boeing stock rose 56 cents to close at $45 on the New York Stock Exchange.

Stonecipher said there have been no jet order cancellations because of Asia’s woes and that none is expected this year. However, he said “we can reasonably expect” 60 fewer deliveries to Asia through 2000.

Because of pent-up demand for aircraft in the rest of the world, Boeing should be able to sell those planes to other airlines, he said.

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Technology: Netscape Communications Corp. said its fourth-quarter loss was larger than analysts expected.

The Internet software company said its loss before charges was $20.8 million, or 22 cents a share, contrasted with net income of $8.2 million, or 9 cents a diluted share, in the year-earlier period. Analysts expected the company to lose 17 cents a diluted share, based on the average estimate of analysts.

Netscape, which warned of its loss earlier this month, said its revenue last year was hurt by competition from rival Microsoft Corp., which gives its browser away. Netscape said last week it also will give its Navigator browser away.

* AML Communications of Camarillo reported fiscal third-quarter net income of $261,000, or 4 cents a share, compared with $729,000, or 11 cents, a year ago.

At a Glance:

U.S. drug makers posted improved profits, led by Warner-Lambert Co.’s 38% increase.

Warner-Lambert’s fourth-quarter profit rose to $235.7 million, or 84 cents a diluted share, spurred by $408 million in sales of its cholesterol-reducing drug, Lipitor. The company said net income was up from $171 million, or 62 cents, in the year-earlier period. Basic per-share earnings rose to 87 cents from 63 cents. That met the expectations of analysts.

Even with competition from Lipitor, which went on the market last year, Merck & Co.’s sales of its own cholesterol reducer, Zocor, topped $1 billion in the fourth quarter. That helped boost profit 19% to $1.24 billion, or $1.01 a diluted share, from $1.04 billion, or 84 cents, a year ago.

Schering-Plough Corp. said fourth-quarter net income rose to $343 million, or 46 cents a diluted share, from $278 million, or 37 cents, a year earlier. Basic per-share earnings rose to 47 cents from 38 cents, beating estimates.

American Home Products Corp. said fourth-quarter profit rose 14%, matching estimates, as increased sales of pesticides helped make up for the withdrawal of two popular diet drugs. Profit from operations rose to $571.8 million, or 87 cents a diluted share, from $503.2 million, or 77 cents, a year earlier. Basic per-share earnings rose to 88 cents from 78 cents, matching estimates.

* RJR Nabisco Holdings Corp.’s fourth-quarter earnings rose a better-than-expected 20%, largely because of higher cigarette prices to help pay for a proposed $368.5-billion national settlement of health-related lawsuits against the tobacco industry. Earnings before charges rose to $297 million, or 87 cents a diluted share, from $248 million, or 72 cents, a year ago. That beat expectations of 83 cents a diluted share. New York-based RJR said it took a charge of $85 million during the quarter to pay for costs associated with its settlement with the state of Texas.

* Procter & Gamble Co. said its fiscal third-quarter earnings jumped 11%, but it warned that its results from Asia during the next two quarters will be well below year-ago levels as the full effect of the region’s economic crisis is felt. P&G; earned $1.04 billion, or 76 cents a basic share, compared with $944 million, or 67 cents, a year ago.

* Kimberly-Clark Corp. said fourth-quarter profit fell 5% because of lower tissue prices, and it reported a final loss after taking a $503-million charge for firing workers and scaling back factories worldwide. Profit before charges fell to $339.3 million, or 62 cents a diluted share, from $357 million, or 63 cents, a year earlier.

* Los Angeles-based Pacific Enterprises, the parent of Southern California Gas Co., reported fourth-quarter net income of $40 million, or 47 cents per basic share, compared with $48 million, or 56 cents, a year ago.

* Minnesota Mining & Manufacturing Co. said its fourth-quarter net income fell 2.4% as the stronger dollar crimped profit. The maker of Scotch tape and Post-It notes said net income fell to $366 million, or 89 cents a diluted share, from $375 million, or 89 cents, before profit from discontinued operations in the year-ago quarter.

* GTE Corp.’s fourth-quarter profit fell 10% to $702 million, or 73 cents a diluted share, from $784 million, or 81 cents, a year earlier.

* Hughes Electronics Corp. said fourth-quarter earnings, its first results since it was spun off from General Motors, fell 21% to $22.7 million, from $28.7 million a year earlier. Diluted per-share results weren’t immediately available.

* Starwood Hotels & Resorts Trust’s fourth-quarter earnings more than doubled to $56.3 million, or 85 cents a diluted share, from $26.1 million, or 51 cents, in the year-ago quarter.

* ITT Industries Inc. said fourth-quarter net income rose to $72.3 million, or 60 cents a diluted share, from $71.2 million, or 59 cents, in the year-earlier period.

* Estee Lauder Cos. said fiscal second-quarter earnings rose 22% to $85.3 million, or 66 cents a diluted share, from $69.9 million, or 54 cents, a year ago.

* Transamerica Corp.’s fourth-quarter earnings rose 39%, excluding gains, to $147.5 million, or $2.26 a diluted share, from $106.4 million, or $1.52, in the year-earlier period.

* Pasadena-based Avery Dennison Corp. said fourth-quarter profit rose to $54.4 million, or 52 cents a diluted share, from $47.7 million, or 45 cents, a year ago.

* Tosco Corp. said fourth-quarter earnings more than doubled to $72.1 million, or 44 cents a diluted share, from $30.2 million, or 22 cents, a year ago.

* PacifiCorp said its fourth-quarter profit fell 7%, before gains and charges, to $118 million, or 39 cents a diluted share, from $127 million, or 42 cents, in the year-ago quarter.

* American General Corp. said fourth-quarter earnings climbed 18% to $219 million, or 88 cents a diluted share, from $185 million, or 75 cents, a year ago.