Time Clock, Dec. 19, 1955

DEFENSE PROFITS will be bigger under a new Pentagon directive affecting about $3 billion worth of contracts annually, mostly for aircraft Instead of limiting profits to a flat 5/o of costs, the Pentagon will give suppliers "progress payments" as goods are delivered, include not only costs of labor, materials and plant overhead but also an interim profit ranging from 6% to 11%. Profits will be subject to renegotiation later but estimates are that they will average about 10%.

JET-TRANSPORT ORDERS are still climbing. The latest: Eastern Air Lines for 26 Douglas DC-8s (six with...

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