Sales of U.S. aerospace corporations rose 4.2%, to $31.1 billion, during the final quarter of 1995, according to the latest data collected by AIA's Aerospace Research Center.

Despite this increase, net profits after taxes fell 60.3%, to just $670 million, due in part to a large write-off by the McDonnell Douglas Corporation that was related to the company's MD-11 program.

The industry's 1995 fourth quarter operating margin was a healthy 7%, compared with 5.6% during the same period in 1994. The operating margin, expressed as a percentage of total sales, reflects gross profit before nonoperating expenses are deducted.

Total industry orders increased sharply, 27.6%, in the fourth quarter of 1995 to $32.44 billion. By AIA's count, U.S. manufacturers received new orders for 206 large commercial jet transport aircraft during the fourth quarter, representing nearly half of the net orders in 1995. For the year, total industry orders came to $104.16 billion, up $15.73 billion from 1994.

Total employment and employment of production workers continued to decline in 1995, and the decline appeared to accelerate in the fourth quarter. A strike by approximately 33,000 workers at the Boeing Company, starting in October and ending in December, temporarily lowered employment levels. AIA tabulates that employment fell less than 1%, or by 3,000 workers, from September to December.

For more information about AIA's Statistics, please contact stats@aia-aerospace.org.