A new McAleese & AssociatesÂ report saysÂ Boeingâs (NYSE: BA) defense, space and security business reported $6.6B in sales for the second quarter of 2019, showing an 8 percent increase from the same period last year.
Boeing said Wednesday its defense business reached a backlog of $64B during the second quarter and posted an operating margin of 14.7 percent in Q2 2019, reflecting an 8.5 percentage point increase due to a gain on a property sale and lower cost growth on the KC-46 tanker aircraft program.
The business segment secured contracts covering the Air Forceâs Joint Direct Attack Munition and Wideband Global Satellite Communication; U.S. Navyâs F/A-18 service life modificationÂ and the U.S. Armyâs MH-47G Block II ChinookÂ helicopters.
Boeing also cited notable milestones in the quarter, including the completion of the final parachute test for the Starliner commercial crew spacecraft and the first flight test of the T-X Trainer aircraft.
The companyâs global services sector saw its Q2 sales grow 11 percent to $4.5B. The segment’s profit climbed 14 percent to $687M with an operating margin of 15.1 percent, according to the report.
McAleese noted that Boeing issued a “no-bid” threat on the U.S. Air Forceâs potential $63B Ground Based Strategic DeterrentÂ downselect, proposing options of a ânational team,â the serviceâs supply ofÂ solid-rocket motorsÂ as “government-furnished equipment” to bothÂ GBSDÂ offerors, or exclusion of SRMsÂ fromÂ GBSDÂ cost evaluation.