| The Military Aircraft and Missiles segment is also currently
in the development phase on the Unmanned Combat Air
Vehicle (UCAV) program for the U.S. Air Force and Navy.
The Air Force variant is expected to begin flight test
later
this year. It is expected that the UCAV programs will
play a defining role in the future air combat environment. |
| The Company believes it is uniquely positioned in the
rotorcraft marketplace. The AH-64 Apache is the U.S.
Government’s primary attack helicopter and is considered
to be the pre-eminent attack helicopter in the world.
The segment is currently finishing the first domestic
multiyear upgrade contract on the Apache and is transitioning
to the second multiyear contract. In addition, the Apache
has a strong backlog of international customers.
The CH-47 Chinook is currently transitioning from development
to production of a major new upgrade program.
This will insure the long-term viability of this product
line. While the V-22 Osprey has been grounded due to technical
concerns, the program continues to have great customer
support. Flight test is scheduled to resume in
April. The Company is working with the customer to define
additional testing and the production line is being
optimized during this transitional period. Looking to
the future, the Company is teamed with Sikorsky Helicopters
in the development of the next armed reconnaissance helicopter,
the RAH-66 Comanche. |
| Current products in the tactical missiles segment include
the Harpoon Block II, SLAM-ER, Brimstone, CALCM
and the Joint Direct Attack Munition (JDAM). The highly
successful deployment of JDAM during recent actions in
Afghanistan has resulted in a significant increase in
backlog. Future programs include the Small Diameter Bomb,
for which Boeing recently won a competitive concept development
contract. The Company also is aggressively
pursuing opportunities that utilize high-speed technology
for the next-generation missile. |
| The 767 Tanker program demonstrates the strength and
capability of the Company, when leveraged across its
business segments. The program has been initiated with
the recent Italian and Japanese selections. The
Company is currently in competition to meet the tanking
requirements of the United States and Great Britain.
The Company also continues to market the 767 Tanker to
other potential international customers. This program
provides a large opportunity into the next decade for
the Company. |
| The Company’s product offerings in the Aerospace
Support market includes a full line of Life Cycle Customer
Support (LCCS) such as spares, maintenance, modifications,
logistics and training. The segment continues to
perform successfully on LCCS programs, including the C-17
Flexible Sustainment Contract and the F/A-18
FIRST contract. Recent contract awards, including the
C-130 Avionics Modernization Program, have solidly
positioned the segment in this market. |
| In summary, the Military Aircraft and Missile Systems
segment has a strong ongoing production base encompassing
both domestic and international customers on programs
such as C-17, F/A-18E/F, AH-64 and JDAM.
The sector also has several major programs transitioning
to low-rate initial production such as the F-22 and V-22
programs and is well positioned for the future with development
programs such as the RAH-64, 767 Tanker,
Aerospace Support, and UCAV. |
| Space and Communications Business
Environment and Trends |
| There are four major markets for the Space and Communications
segment: launch services, information and
communications, human space flight and exploration, and
missile defense. |
| Many environmental factors affect the outlook for the
launch services business. The reduced demand projections
that incorporate the results of the softened non-geostationary
satellite launch market and the resulting forecast
of excess capacity in launch vehicle supply will continue
to create a highly competitive atmosphere in the commercial
market where capability, service availability, reliability,
and affordability will be critical success factors. The
DoD market remains steady with reliability and a guaranteed
second source being the critical success factors.
With the Delta family and Sea Launch commercial launch
vehicles, the Company is well positioned to respond to
these changing market conditions. As the launch market
continues to evolve, the Space and Communications
segment is prepared to play a major role in NASA-driven
and industry-driven advanced space transportation
technology developments. |
| The information and communications market targets both
government and commercial customers. This market
offers the largest opportunity for growth for the Space
and Communications segment. The government segment
includes airborne mission systems, space systems, satellite
systems, and integrated systems-of-systems opportunities.
The commercial segment includes satellite manufacturing,
network operations, and application service
opportunities. Products serving these markets require
strong customer-focused solutions and seamless interfaces
with multiple systems and applications. The Company believes
that its experience in large-scale systems
integration projects, along with related expertise in
satellite system development and manufacturing will provide
the leverage necessary to expand in this market. |
