The Boeing Co. (BA) won a follow-on contract for the Advanced Airborne Sensor Capability Platform Integration Kit in support of the P-8A Poseidon. The contract is worth $60.7 million.
Per the contract, Boeing will procure recurring Advanced Airborne Sensor Capability Platform Integration Kit in support of the P-8A Poseidon Low Rate Initial Production Lot IV (13 aircraft) and Full Rate Production Lot I (16 aircraft). The work under this contract is slated for completion by Apr 2017.
The P-8A Poseidon provides the Navy anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance capabilities. The P-8A is a military derivative of the Next-Generation 737-800 commercial airplane.
In Oct 2014, Boeing delivered the 18th P-8A Poseidon aircraft to the U.S. Navy. The aircraft will substitute the P-3 Orion fleet of the U.S. Navy, which have been in service for more than 40 years. Boeing is currently under contract for manufacturing 53 P-8As.
In Aug 2014, Boeing won a $295.6 million contract from the U.S. Navy to buy parts required for the production of 12 more P-8A spy planes, including 8 for the U.S. Navy and 4 for the government of Australia. Boeing had previously won a $2.1 billion contract in Feb 2014 from the Navy to build the first batch of 16 P-8A Poseidon spy planes.
Boeing’s industry team includes CFM International, Northrop Grumman Corp. (NOC), Raytheon Co. (RTN), Spirit AeroSystems, Inc. (SPR), BAE Systems plc and a subsidiary of General Electric − GE Aviation.
Besides being a commercial manufacturer behemoth, Boeing is also one of the major players 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.
This defense contractor has lately won a number of contracts from the U.S. Department of Defense, which includes both big and small ticket items. For 2014, the company expects its defense revenue to be in the range of $30 billion to $31 billion with an operating margin of approximately 9.5%.
Boeing carries a Zacks Rank #2 (Buy).
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