Boeing Adds $1 Billion to Service Contract Orders – 24/7 Wall St.
While announcing maintenance and repair contracts isnt as sexy as announcing the sale of 100 new commercial airliners, Boeing Co. (NYSE: BA) announced Tuesday from the Singapore Air Show that it had written service contract orders for more than $900 million.
In the fourth quarter of 2017, Boeing reported revenues of $4 billion from its global services business. For the full year, services revenues rose 5% year over year to $14.64 billion.
Earlier this year Boeing projected a need for aerospace services at $2.6 trillion over the next 10 years. Over the next 20 years, Boeing projects a total commercial services market worth nearly $8.5 trillion. CEO Dennis Muilenburg has set a target for Boeing of $50 billion in services revenue by 2022. The companys 2016 services business totaled nearly $14 billion.
Stan Deal, president and CEO of Boeing Global Services, said:
Boeing is serious about helping customers optimize the performance of their fleets and reduce operational costs throughout the lifecycle. Predicted growth for aerospace services in the Asia Pacific brings opportunities to partner with local industry to understand the regions greatest needs, invest in new capabilities to meet those needs, and then bring them to market quickly.
The agreements announced this morning touch all four of Boeings services capabilities: parts; engineering, modifications and maintenance; digital aviation and analytics; and training and professional services.
Here are a few of the agreements Boeing call....