Raytheon, Boeing seen likely to weather defense cuts

A new financial analysis indicates that the defense units of Raytheon and Boeing are likely to weather further cuts in Defense Department spending better than their competitors, reports Aviation Week.

A 59-page sector review by Credit Suisse of major U.S. aerospace and defense contractors released Oct. 19 concludes that Raytheon is well positioned in this regard because it gets 25 percent of its sales from outside the United States and another 15 percent from classified contracts, both of which remain growth areas.

Boeing has many multiyear contracts with steep customer termination costs, and it also holds the Air Force's next-generation KC-46A tanker contract that should offset cuts to other aviation contracts it has, according to the review.

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