The Boeing Company
) was awarded a $17.9 million cost-plus-fixed-fee contract.
This is a modification for design and engineering services in
support of the CH-47 Advanced Chinook Rotor Blade. Work on
the contract will be performed in Ridley Park, with an estimated
completion date of Mar 18, 2017. The Army Contracting Command,
Redstone Arsenal, Ala., is the contracting activity. The CH-47
Chinook helicopter features Common Avionics Architecture System
Rockwell Collins Inc.
). The helicopters are powered by two 4,733-horsepower Honeywell
engines built by
Honeywell International Inc.
Boeing enjoys a unique position as the largest aircraft
manufacturer in the world in terms of revenues, orders and
deliveries, and is also one of the largest aerospace and defense
contractors. Besides, its revenues are spread across more than 90
countries around the globe.
The Boeing Company is among the best-positioned in its sector
due to its balanced exposure to commercial aircraft and defense
equipment. With the gradual recovery of the global economy, we
believe freight and passenger traffic will improve going forward.
Also, the U.S. defense budget is skewed towards a number of
prominent Boeing programs. Overall, the growth momentum will be
maintained by an order backlog close to $390 billion, planned
production rate increases and a globally diversified customer
base. However, in the near term, headwinds in the global airline
industry along with expected cutbacks in the U.S. defense budget
affect the current valuation of the company.
Boeing is also one of the major players in the defense
business, which accounts for approximately half of its top line.
Boeing's defense business stands out among its peers by virtue of
its broadly diversified programs, strong order bookings and order
backlog of $71 billion at the end of 2012. Also, the U.S.
Department of Defense (DoD) has a focus on Boeing's programs like
the F/A-18 fighter jet and its carrier based version EA-18G
Growler, P-8A Chinook helicopter, Apache and Osprey rotorcraft,
and the brigade combat team modernization program.
Internationally, the company is witnessing strong demand for its
defense products, such as fighter jets, the C-17 series transport
aircrafts, the rotorcraft line up and 737-based military
derivatives. The company is also expanding its presence in cyber
security, intelligence and surveillance and unmanned systems,
where growth rates are higher than the overall defense
The company currently has a Zacks Rank #2 (Buy). Other stocks
from the sector that are also performing well presently include
Lockheed Martin Corporation
) with a Zacks Rank #2 (Buy).
BOEING CO (BA): Free Stock Analysis Report
ROCKWELL COLLIN (COL): Free Stock Analysis
HONEYWELL INTL (HON): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
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