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Boeing Gets First $110 Million for Ballistic Missile Work

<i> Bloomberg News</i>

Boeing Co. said Tuesday that its unit in Anaheim has received an initial $110-million installment of a seven-year contract to replace the guidance systems of the nation’s intercontinental ballistic missiles.

Total value of the contract, if all parts are awarded, would be about $1 billion. Boeing’s Guidance, Navigation & Sensors division in Anaheim won the contract. Production will take place at Boeing’s El Paso plant.

“It’s probably one of the largest, if not the largest program, outside of the classified work they do,” Merrill Lynch defense analyst Bryon Callan said.

The initial contract calls for the Boeing unit to produce 40 guidance computers and avionics systems for the 500-missile fleet. The Air Force plans to buy 625 guidance kits, plus spare parts and support equipment.

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Boeing shares rose $1.69 to close at $52.19 a share on the New York Stock Exchange.


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