Dennis Muilenburg, President and CEO – Boeing Defense, Space and Security says robust growth in the company's international business will help spearhead additional revenues in 2011, forecast to be as high as $33 billion against $31.9 billion in 2010. Although describing the business as "a tough defense environment right now," Muilenburg says the company is poised for a strong year on the back of major developments such as the KC-46A tanker win, signing of the P-8A LRIP contract and F/A-18, EA-18G multi-year procurement deals. Fastest growing areas in the portfolio include "proprietary work, cybersecurity and rapidly expanding international business," he adds. The international sector "was 5%, is 17% now and will grow to 25% over the next few years."
Speaking at the company's investors conference, Muilenburg says despite an overall reduction of around $18 billion in the FY11 US defense budget, Boeing will see an $1.2 billion increase. "If you include NASA that's a $3 billion increase," he adds. However, over the next five years, it anticipates seeing an overall defense budget reduction of $78 billion over the FY12-16 period. The international customer growth, particularly in the Middle East and Asia, is expected to help defer this. "This environment is not a surprise to us - we've anticipated it," Muilenberg adds.