The Boeing Company
) has received a total of three foreign military sales ("FMS")
contracts from the Department of Defense. The contracts, in
aggregate, have a value of $132.6 million.
The lion's share of these three FMS contracts, with a total value
of $109.5 million, entails services in support of the Royal Saudi
Land Force Aviation Command. This is a modification contract to a
previously awarded firm-fixed-price FMS contract. The total value
of this FMS contract now touches $395 million.
In the second award, Boeing won a $15.5 million modification
contract to a previously awarded firm-fixed-price FMS contract.
This contract calls for the defense contractor major to supply
Apache Block III aircraft to Saudi Arabia.
Lastly, a minor firm-fixed-price FMS contract entitles Boeing to
provide sustainment services for Apache AH-64D attack helicopters
operated by the Dutch military. The contract has a value of $7.7
Based in Chicago, The Boeing Company together with its
subsidiaries engages in the design, development, manufacture,
sale, and support of aerospace and defense products as well as
Boeing is 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, like
Lockheed Martin Corp.
Northrop Grumman Corp.
General Dynamics Corp.
), by virtue of its broadly diversified programs, strong order
bookings and order backlog.
During the first quarter of 2013, the company's backlog increased
to a record $392 billion that included $20 billion of net orders.
Some of Boeing's important 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, are on the focus list of the U.S.
However, defense contractors, including Boeing, have not been
spared from the negative impacts of sequestration. The company
has nonetheless tackled the situation well with various DoD
contracts, though small in sizes, as well as through commercial
Boeing currently carries a Zacks Rank #2 (Buy).
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