C 17 Airplane

McDonnell Douglas said Tuesday that it took a $269-million charge for expenses related to its troubled C-17 cargo jet program, resulting in a $15-million loss for the third quarter. The $269-million charge covers the projected cost of redesigning and fixing the C-17's wing, which failed earlier this month in a stress test. The charge also includes a reserve of about $135 million for future uncertainties and an undisclosed amount for continued cost overruns on the C-17 program.

McDonnell Douglas shares plunged 10.7% Friday, losing $5.625 per share to $47.125, on investor concern over the C-17 cargo jet, analysts said. For the full week, McDonnell shares have lost nearly 18% in New York Stock Exchange trading. Analysts could not identify a single cause for the drop, but McDonnell has received bad news this week on several fronts about the C-17. A spokesman said McDonnell does not comment as a matter of policy on stock price movements.

The Air Force said Thursday that it will cost $130 million to design and produce a new wing for the McDonnell Douglas C-17 cargo jet over the life of the program, more than double the company's prior estimate of $50 million. In addition, recent Pentagon estimates suggest that repairs to the C-17's slats and flaps, which have been prone to cracking, will cost an additional $270 million.