The Boeing Co
) received an $895 million contract from the U.S. Air Force right
before year-end 2012. Per this 10-year contact, Boeing will be
entrusted with the responsibility of upgrading the military
transport aircraft C-17 Globemaster.
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Boeing will provide integrated software, hardware and weapons
system upgrades to C-17 Globemaster. Most of the work will be
done in its Long Beach, California facility.
United States continues to play an active role in global peace
keeping, with C-17 Globemaster playing an important role in such
missions. The contract for upgrade is in recognition of the
importance of this aircraft, which will also be made ready for
service in the next decade.
Primarily developed for military transportation, this aircraft is
also used for humanitarian work and national emergencies. Apart
from the U.S., several other countries use C-17 Globemaster for
their defense needs.
Since its introduction in 1993, Boeing has delivered 218 C-17
Globemaster III aircraft till September 14, 2012. With the U.S.
government planning to trim its defense expenditure, upgrade of
this aircraft will defer the need for development of any new
aircraft for the time being.
The Defense, Space & Security segment contributes nearly 40%
of Boeing's total revenue. The diversified offering allows Boeing
to consistently win defense deals, amidst the fear of budget
cuts. This prompted Boeing to raise its full-year revenue
guidance for this segment to $32.5-$33.0 billion from $31.5-$32
Chicago-based Boeing Co. currently has a short-term Zacks #3 Rank
(Hold). The company competes with the likes of
General Dynamics Corp.
Lockheed Martin Corporation
Northrop Grumman Corporation