The Boeing Co.BA has won a contract from the Defense Logistics Agency for the delivery of aircraft vertical stabilizers. The contract is valued at $71.3 million.
This is a sole-source acquisition contract, which will be carried out in Missouri. The contract is expected to run through Apr 30, 2019.
Though Boeing is renowned as a commercial airplane manufacturer, it is also a major player in the defense business. Boeing's defense business stands out among its peers by virtue of its broadly diversified programs, strong order bookings and order backlog.
Earlier this month, Boeing clinched a major Air Force contract for T-38C avionics component integration and contractor logistics support. The contract is valued at $855 million. Work on the contract is expected to be completed by Jan 2026.
It also won an indefinite-delivery/indefinite-quantity contract, worth $357.9 million, from the Defense Department. The contracting activity is the Naval Air Systems Command, Patuxent River, MD. Per the contract, Boeing will procure Lots 4-8 full-rate production of the DSU-38 A/B Precision Laser Guided Sets ("PLGS") for the U.S. Navy, Air Force and foreign customers, including the governments of United Arab Emirates, Belgium, Turkey, Morocco and Saudi Arabia.
Recently, Boeing reported record deliveries for 2015, retaining its position as the world's biggest airplane maker. Jet deliveries for this aerospace major touched an all time high in 2015, beating its own projection, borne aloft by strong commercial numbers.
Boeing is slated to release fourth quarter 2015 earnings results on Jan 27.
Boeing currently has a Zacks Rank #3 (Hold). Some better-ranked players in the aerospace and defense industry include Leidos Holdings, Inc. LDOS , General Dynamics Corp. GD and Northrop Grumman Corp. NOC . While Leidos Holdings sports a Zacks Rank #1 (Strong Buy), General Dynamics and Northrop Grumman hold a Zacks Rank #2 (Buy).
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