Boeing first-quarter defense revenue increases 2% on higher volume

Boeing on Wednesday, April 24 posted first-quarter 2019 results, reporting a 2% revenue increase in its defense division marked by U.S. and foreign military contracts.

The aerospace giant’s overall profits fell 13.2 percent to $2.1 billion, and it suspended 2019 financial guidance over fallout from the deadly 737 MAX civilian jet crashes.

Defense, Space & Security revenues increased to $6.6 billion primarily driven by higher volume across satellites, weapons and surveillance aircraft partially offset by lower C-17 volume, Boeing said.

Earnings from operations increased 12% to $847 million compared to the same period last year, and the Operating Margin was up 1.1 points to 12.8%, reflecting a gains from property sales partially offset by unfavorable mix.

US and foreign military sales

Defense, Space & Security booked $12 billion in orders during the quarter and backlog grew to $67 billion, of which 31% percent represents orders from customers outside the U.S.

During the quarter Boeing was awarded a $4 billion contract to produce 78 F/A-18 Super Hornets for the U.S. Navy, and contracts for 5 Extra Large Unmanned Undersea Vehicles, also for the Navy, as well as a $2.5 billion contract for 19 P-8 Poseidon aircraft for the U.S. Navy, Royal Norwegian Navy and U.K. Royal Navy.

During the quarter the company delivered 28 new and remanufactured AH-64 Apache helicopters, 11 new and renewed CH-47 Chinook helicopters, four F-15 fighter jets, seven F/A-18 fighters, seven KC-46 tanker aircraft and three P-8 Poisons.

On February 26, Boeing named former U.S. ambassador to the United Nations Nikki Haley to its board of directors.

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