The Boeing Company
) announced a contract extension with its existing customer
Intelstat S.A. Common Shares
). As per the renewed agreement, Boeing will manufacture four
additional 702MP satellites for an undisclosed amount. This will
establish its reputation as the initial builder of Intelstat's
advanced satellite fleet, Intelsat EpicNG. Intelsat offers
satellite communication services globally.
Boeing initially received a four-year contract in Jul 2009
which included building two geo-stationary satellites and two
spacecrafts of C- and Ku-band capacity that would provide
network, video and voice services worldwide. The 702 MP's will
supply reliable, affordable and greater data transmissions to
The first EpicNG satellite, Intelstat 29e is the last one from
the prior contract and is still in production. It is expected to
be launched in 2015. This will serve the Americas and North
Atlantic. Intelstat 29e will be followed by Intelstat 33e from
the new contract, scheduled to be launched in 2016.
Of late, Boeing has been expanding its telecommunication
satellites business. In Apr 2013, the company announced to build
a series of low-cost small satellite prototypes named Phantom
Phoenix. The satellites will perform various task varying from
intelligence, surveillance and reconnaissance to planetary
Going forward, Boeing's prospects from this business segment
look encouraging given the substantial orders booked especially
from its foreign clients. At the end of first quarter 2013, the
company had total backlog orders worth $68.0 billion with 42%
coming from overseas customers.
A major overhang on the stock was also removed when the U.S.
Federal Aviation Administration ("FAA") approved the redesigned
battery of the 787 Dreamliner in the first quarter.
However, the uncertainties surrounding defense cutbacks might
prove unfavorable for Boeing's future growth objectives as a
major part of its operations is tied to the U.S. defense sector.
Currently, the company carries a Zacks Rank #3 (Hold).
Aerospace and defense operators currently performing well
Northrop Grumman Corporation
Wesco Aircraft Holdings Inc
). The stocks are presently well positioned with a Zacks Rank #2
Based in Chicago, IL, Boeing along with its business wings is
engaged in the design, development, manufacture, sale, and
support of commercial jetliners, military aircraft, satellites,
missile defense, human space flight, and launch systems and
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