Boeing Defense Australia, a subsidiary of aerospace and defense giant The Boeing Company (BA), and Thales Australia have signed a Memorandum of Understanding to pursue the Helicopter Aircrew Training System (HATS) contract for the Australian Defense Force.
Thales is a global player in the defense, security, aerospace and transport markets. The HATS program will provide a rotary-wing training capability for Royal Australian Navy and Australian Army aircrews. Boeing expects the Australian government to request HATS from defense firms in 2011 itself.
Boeing’s rival Lockheed Martin Corporation (LMT) has already entered the race for HATS through a partnership with Bristow Group Inc.’s (BRS) Australian arm Bristow Helicopters Australia.
Boeing already provides helicopter pilot, aircrew and technician training for the Australian Army under the Army Aviation Training and Training Support (AATTS) contract. The company trains helicopter aircrews on Black Hawks, Textron Inc.’s (TXT) Bell and Chinooks.
Boeing’s Defense, Space & Security is one of the world’s largest defense, space and security businesses, specializing in innovative and capabilities-driven customer solutions, and also a manufacturer of military aircraft.
Boeing Defense, Space & Security segment witnessed a 4% revenue drop to $8.2 billion in the recently reported fourth quarter numbers. This was due to fewer deliveries and less favorable product mix.
Of these sub-segments, Boeing Military Aircraft and Global Services & Support witnessed a lower topline by 5% and 11%, respectively. The Network & Space Systems sub-segment witnessed a 2% rise in revenues. The company ended the quarter with an order backlog of $65.2 billion; approximately two times the segment’s expected 2011 revenue.
Based in Chicago, Boeing designs and produces commercial airplanes, defense systems and civil and defense space systems.
Boeing has a unique position as the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries, and also as one of the largest aerospace and defense contractors in the world. Its revenue exposure is spread across more than 90 countries around the globe.
The Boeing Company currently retains a Zacks #4 Rank (short-term Sell rating). Considering the fundamentals, we are maintaining our Neutral recommendation on the stock.
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