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RESTRUCTURING PLANS ANNOUNCED BY MCDONNELL DOUGLAS

 RESTRUCTURING PLANS ANNOUNCED BY MCDONNELL DOUGLAS
 MESA, Ariz., Dec. 6 /PRNewswire/ -- McDonnell Douglas Helicopter


Co. today announced a restructuring of its organization that will allow it to remain competitive in the world helicopter market.
 "The rigorous cuts in defense spending coupled with a sharp economic downturn forces us to take action," said company President Tom Gunn. "Aerospace companies, particularly those involved in defense contracting, are particularly hard-hit."
 The company's restructuring includes a consolidation of various internal divisions, a year-long scaling down of its work force as contracts are completed or slowed and reduced spending in all areas.
 "Ours is an industry where dramatic actions are required to just stay in business," Gunn said. "We feel we are more fortunate than many aerospace companies because of the cost reduction and organizational moves we have made over the last two years.
 "The restructuring we are announcing today helps us to significantly strengthen our ability to compete," he said.
 Steps taken by the company in 1992 will include exploring options for joint ventures and the possibility of selling portions of its existing business.
 Gunn said that during 1992 the company's work force would be reduced by 800 to 1,000. These reductions will be accomplished as existing contracts are concluded, through normal attrition and elimination of less essential positions.
 "We are coping with the pressures of a difficult industry and economic environment," he said. "The competition is as intense as it has ever been, and our helicopter business base is shrinking.
 "We are forced to permanently change the way we do business."
 Gunn said the company continues to move forward with the development of its new twin-engine, eight passenger MDX helicopter and with deliveries of its commercial mainstays, the MD 500 and newly developed MD 520N with its exclusive NOTAR anti-torque system.
 He said production of Apache helicopters will continue as before but with increased emphasis on international sales. The company has delivered 696 of the 807 Apaches sold to the U.S. Army. It has orders for an additional 54 Apaches to the armed forces of other countries and is in negotiations to complete Apache sales to several other nations.
 "Our backlog is better than it has been in years," Gunn said. "The moves we are announcing today assures that we can deliver as promised while increasing our business at the expense of our competitors."
 -0- 12/6/91
 /CONTACT: Ken Jensen of McDonnell Douglas Helicopter Co., 602-891-2119/ CO: McDonnell Douglas Helicopter Co. ST: California IN: ARO SU:


AL -- LA018 -- 0198 12/06/91 15:14 EST
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Date:Dec 6, 1991
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