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Boeing Retains Focus on Air Platforms for Defense Markets
$73 Billion Backlog Even As Traditional Customers Explore Options
Boston, MA - September 23, 2009 – The current status and future prospects for Boeing are examined in “Defense Industry Profiles: Boeing Looks to Air Platforms to Sustain Growth,” the latest in a series of Strategy Analytics reports profiling the major players in the defense industry. Boeing will have to face the reality that previous relationships will not automatically translate into contract wins as even stalwart customers, such as the US Department of Defense explore their options for key programs like the aerial tanker (KC-45) program.
While Boeing’s profitability has remained positive over the 2003 – 2008 timeframe, the company has struggled to maintain consistent growth. With revenues consistently in the $31 – 32 billion range, Boeing has not shown any significant increase in its defense-focused revenues. Despite these challenges, Boeing defense business continues to boast an impressive $73 billion backlog, more than two times expected 2009 revenues.
"Boeing is faced with the growing influence of non-US suppliers for both its domestic market and on the international front. This has impacted Boeing in defense sectors the company may have previously considered to be a sure bet,” observed Asif Anwar. “However, Strategy Analytics believes that Boeing maintains significant momentum in key defense areas including UAV, fighter and reconnaissance platforms that should allow the company to survive recent setbacks."
This Strategy Analytics report provides detailed commentary on the strategic positioning of Boeing, as well as detailed background information on specific programs, key contracts, alliances and disputes.
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