Boeing’s aerospace defense business made profits of $1.5 billion last year as its jetliner unit lost $6.5 billion, as challenges persist with its 737 MAX and 787 Dreamliner commercial jet
Sales at Boeing’s defense, consisting of
- F-15 jet fighters
- Chinook helicopters and
- Harpoon missiles
have surpassed those from its commercial airplane’s division in each of the past two years. WSJ reports
That is set to change in 2022 with increased deliveries of the 737 MAX, though defense still provides the bulk of Boeing’s profits and the free cash required to reduce its debt of more than $40 billion.
*Boeing chart on market outlook
Boeing is scheduled to report quarterly results on April 27
The defense arm remains a major source of cash and Boeing’s largest business, with forecast sales of $6.7 billion in the first quarter versus $5.4 billion for its jetliners.
While the company is expected to update investors on the progress of the MAX and the long-running freeze on 787 Dreamliner deliveries, changes are also in the works in Boeing’s defense unit, which generated $26.5 billion in sales last year.
Boeing secured three Pentagon contracts in 2018,
its first big defense competition wins in seven years, winning the deals for the MQ-25 Navy drone, the new T-7A Air Force trainer jet and Grey Wolf helicopters.
Other governments, especially in Europe, have pledged to boost their own military spending. and Boeing is seriously considering to offer their latest military products.