Through TheFLY's Eyes: Boeing
Boeing Secures Border Protection / Monitoring Work
Boeing (BA) registered a modest victory Wednesday with word that the company had been selected by the U.S. Department of Homeland Security to lead a technology-intensive effort to secure the U.S.’s borders.
Boeing has been awarded an $80M contract to install or supervise the installation of sensors, cameras, fences, vehicle barricades, and small unmanned aerial vehicles, starting along the Arizona / Mexico border.
Boeing traded up $1.34 to $76.21 on the news in Wednesday afternoon trading.
The project is called the Secure Border Initiative. Analysts have placed the project’s total outlays at $2B for a six-year span. Further, given the project’s size and the federal government’s spending pattern under previous projects, it’s not a stretch to point to additional work for Boeing under the initiative, although no other tasks/dollar amounts were announced at the time of Wednesday’s contract award.
Wednesday’s award was a welcomed announcement of good news for Boeing, which has seen its stock slide from $89 in the spring to about $76, due to Wall Street’s concerns about slowing aircraft demand in a slowing global economy. Most analysts conclude that Boeing is well-positioned in the commercial airline sector, given the positive reception for its next-generation airliner, the 787, which has amassed significant orders from national airlines globally. Nevertheless, plane orders can be reduced due to changing economic conditions, which only underscores the importance of the Secure Border Initiative contract win.