The Boeing Company
) has plans to sell eight AH-64E Apache attack helicopters in a
deal worth $500 million to the Indonesian Army. Under this
foreign military sales contract, the U.S. will provide Indonesia
with the country's very first Apaches.
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Boeing's Apache, with a cruising speed of 261 kilometers (162.2
miles) per hour, is a twin-engine, four-bladed, two-pilot
helicopter that scored high ratings for its engine competency and
weapons load. Apache is also noted for its target acquisition
potential. The helicopters are fitted with advanced Longbow Fire
Control Radar, which is a high-performance tracking and targeting
system that was jointly developed by
Northrop Grumman Corp.
Lockheed Martin Corp.
The latest contract also entails the U.S. to provide radar,
training and maintenance support to the Indonesian army. Apart
from the U.S., the militaries of Egypt, Greece, Israel, Japan,
Kuwait, the Netherlands, Saudi Arabia, Singapore, the United Arab
Emirates and the U.K. have also used Apache models.
Boeing has a unique position as the largest aircraft manufacturer
in the world in terms of revenues, orders and deliveries.
Besides, it is one of the largest aerospace and defense
contractors in the world and its defense business accounts for
approximately half of its top line. Also, its revenues are spread
across more than 90 countries around the globe.
In addition to expanding its presence in the defense space,
Boeing is also an important operator in the commercial airplane
market. Boeing has also clinched a deal on Monday with China's
Xiamen Airlines for six of its 787 Dreamliners. Xiamen had
initially announced its plan to buy Boeing's high-tech,
fuel-efficient jetliners, 787-8s, way back in May 2011. The order
is worth $1.3 billion at list prices.
Due to the continuing recovery of the global economy, demand for
Boeing's Commercial Airplanes is benefiting from a steady
improvement in passenger and freight traffic. Xiamen Airlines has
an all-Boeing fleet of 97 airplanes, including 17 737-700s, 74
737-800s and 6 757-200s.
During the first half of 2013, Boeing delivered 306 jetliners,
6.6% higher than the year-ago number. Boeing's second quarter
deliveries of 169 airplanes advanced 12.7% year over year,
marking a 15-year high. The company is slated to benefit greatly
from improving air traffic which is projected to grow 5% annually
over the next two decades.
Boeing also expects U.S. and Canadian airliners to invest about
$700 billion for fleet extension over the next 20 years. The 787
grounding notwithstanding, Boeing estimates greater than 60 787s
to be delivered in 2013.
Boeing presently has a Zacks Rank #3 (Hold). Other well-placed
defense operators having a favorable Zacks Rank include
Huntington Ingalls Industries, Inc.
) with a Zacks Rank #2.