Nation: Perils of a Planemaker

How will McDonnell Douglas Corp., the nation's largest defense contractor with 1978 sales of $4.13 billion, weather the troubles afflicting its DC-10? Investors are taking a gloomy view. Since the Chicago disaster, the company's stock has dropped from $28.25 to $20.88.

Before the accident, the planemaker was looking good. It had more than $750 million in cash and, after its slow start, its ten-year, $1 billion investment in the DC-10 was about to pay off. The company needs 400 sales of the $40 million plane to cover costs and start making profits. It...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!