Boeing Merges Space, Communications And Military Divisions

By Agence France-Presse Chicago-based Boeing Co. said July 10 it was combining its military and space and communications units into one division in order to better meet the evolving needs of the U.S. military. The two units will be merged to form Integrated Defense Systems, which will group the aerospace giant's space, defense and intelligence capabilities under one umbrella. "Integrated solutions -- joining network-centric information with integrated military air, land, sea and space-based platforms -- is the direction modern defense systems are moving," said Boeing CEO Phil Condit. "The platforms our government customers are buying today will be more and more integrated in the future." The $23 billion business will be headquartered in St. Louis and led by Jim Albaugh, the current chief of space and communications. The move should be complete by the end of 2002 and is not expected to result in any job losses, Condit said. Condit said he had been considering combining the units for a year but was particularly encouraged by two recent contract awards that he felt vindicated the company's strategy of focusing on software or networking capabilities first and foremost. The most recent of these, a contract with the U.S. Army to develop a Joint Tactical Radio System -- the foundation of any future Department of Defense tactical radio -- is expected to be worth $2 billion. "My guess is that more and more procurements are going to be systems oriented . . . we're trying to make sure we're there and leading," Condit added. Copyright Agence France-Presse, 2002

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