European Stars and Stripes (Newspaper) - December 29, 1985, Darmstadt, Hesse                                Sunday december 29 1985 the stars and stripes Page 19 business news 1985 was year of extremes for Boeing co. Seattle up for Boeing co 19h5 was to scar of soaring sales and tragic crashes. Never in inc history of civil aviation have so Many people died in plane crashes in one year More than 2.000. The deadliest of the 1985 crashes involved a Boeing 747 that crushed into the Side of a Mountain in Japan under circumstances suggesting a problem with the jumbo Jet s Tail Section. But. Even As the death loll mounted Boeing the world s dominant manufacturer of commercial aircraft was setting a company sales record. Boeing announced one big order after another. It was More than just big crashes and big sales in 1985 for Boeing. There was the acquisition of one company and a near miss on another. New company leadership emerged. And Boeing received some ices than favourable attention Over some of its defense related business. Among the events that kept Boeing in the headlines throughout the year Boeing set a company record for new air plane orders $12.44 billion Worth. Thai s More than twice As much As a year ago included were two of the three largest orders in the company s history $3.1 billion Deal with United airlines in november and a $2 billion order from North West in october. The crashes. There were six major plane disasters involving Boeing aircraft including the crash of the Japan air lines 747 in August that killed 520 people. It was the most deadly air disaster in history involving a single plane. As one of the nation s largest defense contractors. Boeing caught some of the flak aimed at the Pentagon s business partners in 1985. Specifically Boeing was Crit Ici cd for Selling a pair of pliers to the defense depart ment for $748 and for charging some of its political contributions to the Pentagon. The bidding for Hughes aircraft. After 25 years without making any acquisitions Boeing went after a big one by joining general motors and Ford in Pursuit of Hughes. Cim won the bidding by offering $5 billion for Hughes. The do Havilland Purchase. Although Boeing did t pet Hughes it did reach agreement in november in Pur Chase another company l e Havilland aircraft of can Ada. New models. Boeing moved to expand its product line at both the top and the Bottom in 1985. The company launched a new derivation of its jumbo Jet the 747-400 that will be the inn Cal Range Airliner in the world Fly Illand. Boeing will enter the growing Market for Small commuter aircraft. Agreeing to Purchase de Havill changes in the executive suite. L arly in the u a Boeing moved to put its next generation of leadership in place by promoting Frank Shonu 54, to president of the corporation and naming Dean Thornton. 5f. President of the company s commercial air plane division. More than just keeping Boeing s name in the headlines. The Rush of events in 1985 also raised the question of whether there was some fundamental shift in the company s fortunes. The fact that Boeing concluded its two Bighem de Sis late in the year after most of the air fatalities had already occurred indicates that the wounds to the compans from the crashes weren t deep. There Are other questions is Boeing making an profit on All of the planes it is Selling has the compare changed its philosophy on acquisitions and is Boeing reorienting itself More toward defense business the conventional Wisdom among Boeing officials and financial analysis is that Boeing has emerged relatively unscathed from the spate of crashes because there has never been any indication of a design flaw in Atu  its aircraft. Airlines look Mure at thai than an thing  Shruntz said. The facts Are these. Of the 20 fatal crashes inking civil airliners in i9k5, six were hoeing planes two 727s, two 737s and two 747s. Nearly 1. 100 people were killed in those six crashes. Of the six hoeing crashes Only in the Case of tie Jal 747 is it believed that defects in the plane s Structure were responsible. Although the cause of the Jal crash is still officially under investigation preliminary evidence suggests the problems began when a rear Bulkhead ruptured and Al Lowed or Csuri de air to escape into the Lail Section. Since the investigation began Boeing has acknowledged making an improper repair on the Bulkhead after. Rough Landing in 1978. Without admitting that was the cause of the crash Boeing agreed to split compensation pause nos to the families of the victims with Jal. Since the crash both Boeing and the National transportation safety Board have recommended changes in the 747 Tail Section to limit damage to the Tail from such a do pressurization. The Nosb did not ground the 747s. The salesmen in Boeing s commercial air plane division will remember 9tt5 a the year of the 737-300. The 20-year-old 737 Iwin jct is Boeing s smallest air plane. Last year Boeing rolled out its newest derivation of the plane the 737-300. It is proving the right plane for the Descg Lafed . Market. Of the 349 Boeing aircraft ordered in 1985. 252 of them have been the 737-300. The effect of All those 737 orders on Boeing s Hattom line is not so Clear. Fror one thing. Boeing does t officially record ils orders As sales until the planes Are delivered. That Means the recent United and Northwest orders for instance inn l be fully reflected in Boeing s financial results until the last of the planes arc delivered in 1990. Second cutthroat Competition among Boeing. Mcdon Nell Douglas and the european Airbus consortium has Cut into profits. While commercial air plane sales have made up at least half of the company s revenues in recent years thur Emi Tri Bulion to profits during the 1980s has been much much less. Boeing s commercial air plane operations Hail Nisi is 7 million in profit on $5.4 billion in sales in 1984. A minus Cule profit margin of 0.3 percent. The company As a whole. Which includes Boeing s military and space business re ported pc tas earnings of $569 million on sales it $10.d billion. Boeing officials and most financial Ana kits Are anticipating continuing Strong orders for Boeing s aircraft and improving profit margins possibly through the remainder of the 1980s. New York not Hitachi Ltd. Says it will become the first japanese com Pany to manufacture videocassette record ers in the United states. Hitachi officials concede that the move is partly an Effort to alleviate Trade tensions. The company has been at the Center of conflicts with american semiconductor manufacturers who have charged Hitachi with dumping memory chips or Selling them in the United states at Lar below manufacturing Cost. But there has been Little conflict Over Vars because there arc no Amer ican producers of the machines. We have decided to invest More heavily in the United states As part of the solution to the Trade imbalance said Yasushi Sayama general manager of Hitachi in an v 1 a w a a w a Jevis on Panf interview Al ils .  in Tarry town . But we also want to be  to our Market in the United states and to our  Hitachi officials said the Vars would be made Al inc company s television facility in Anaheim Calif. The production line is scheduled to open next summer at a Cost of $1.5 million. Initially Hitachi officials said about 100,000 Vars will be assembled at the site annually fewer than 4 percent of the 4.5 recorder combinations produced this year by the company. Etc Lually As Many As a half million Vars could be Buill Al the Anaheim facile la each year Sayama said. 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Earn 112 43 p r Jaq 70 6 0 120 700 p e 70 Yak 0 s 3 08 09 1 8 yid 06 n 7 1 s4 43 0 408 Dos 7jb 90 3b07 60 77 0 1 s j 034 88 0 set omd m Stock it mini Taietti 1? month unaudited investor s guide q. I am 83 and retired. My life u 81. We Rte pretty Rood shape for our Ages. We recede s21.000 year from pension and social Security. We  $70,000 Worth of Long term corporate Bonds paying interest or 9 percent to 14 percent $21,000 of growth stocks paying Good did ends s20.000 of Short term certificates of Deposit and si8,200 in Money Market accounts. So years ago we started making gifts of from $2 000 to  to our two sons and their gangs. I always look care of the bookkeeping and taxes but it is getting to be quite a hassle. So 1 proposed giving the Bonds and stocks to the family while we hold the cd and Money Market accounts. My wife suggests we turn the whole operation Over loan honest banker. 1 know a Bank would charge a High fee for that. I say it the boys Lake Over the Job. They Are both College graduates. What do you think. A. Assuming you arc certain your sons arc capable of handling your record keeping and tax mailers Ana really get along with each of her there s no reason you should t turn that function Over to them. However if you had read some of the mail Ihal has cume to this column Over the years spelling out family fights about Money you might have some second thoughts about parting with your Bonds and stocks. I hold to the theory that senior Cili cons should hang on to any wealth they have and might need in inc event of catastrophic illness or other expensive emergencies. My suggestion is to make sure your sons know exactly what securities you own where you have the certificates and All other details. But keep your Bonds and stocks just in Case you and your wife find yourselves in need. There s nothing wrong with continuing to make gifts of Money As Long As you Don t deplete your Cash reserves to the Point where you might find yourselves strapped. Obviously you will leave your securities to your sons and their families. That of course should be done by Way of a will. Unless you have other properly you did t mention the total value of everything you and your wife leave won t be nicked by Federal Stalc lax. Let them inherit your Bonds and stocks not get them now. Q. At Ngo 72, i still work As an adviser for s400 a week. My wife is 60. We have approximately $300,000, All of which is invested in. Stocks that net us about 525,000 per year in dividends. Approximately $200,000 is in 12 Utility company stocks. The rest is in eight stocks most of which pay lower dividends than the utilities. What would be wrong with having 100 percent of our investments in utilities a. Nothing if you Don t pick sonic Utility stocks thai turn out to to clunkers. Until recent years the common Sticks of virtually All Uli lilies were excellent investments. Their dividends were counted As Safe and gradually increased Over the cars. Although that still applies to Many utilities it s no longer inc Case with All of them. You no longer can throw a Dart into a list of Utility stocks and be certain of hitting a Good investment. Before investing in Utility stocks these Days it s Wise really necessary to do some Homework on which ones arc Good and which might be investment bombs. The Best Way to do thai is by gelling research advice from a brokerage firm. King keat Urei column i i Dovle Welcome written question but he can provide an Wert Only through inc column. You can write him in rare of the Stan and 5tripcv Apo 09211. . Force