Boeing defense revenue increases 7% for the year

Boeing released its fourth-quarter earnings report early Wednesday, posting a 5-percent defense revenue boost for the quarter and a 7-percent increase for the year.

Defense, Space & Security fourth-quarter revenue grew to $5.537 billion, while the year's earnings topped $21 billion. The gains were driven primarily on higher weapons deliveries, the company said, and the fourth-quarter operating margin was 10 percent, a gain of 0.1 points from 2016.

During the quarter, Boeing signed a contract during with the U.S. Air Force to provide 36 F-15 fighter jets to Qatar. Another contract with Japan will see the company deliver the first KC-46 Tanker.

Throughout the year, Boeing delivered 68 new and remanufactured AH-64 Apache helicopters, 44 new and renewed CH-47 Chinook helicopters, 16 F-15 fighter jets, 23 F/A-18 Hornet jets, 19 P-8 Poseidon MPAs, and one military satellite.

Backlog was reported at $50 billion, 40 percent of which represents orders from international customers.

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Boeing said it anticipates $21.5-22.5 billion in revenue for Defense, Space & Security this year. On Tuesday, the company named Jeff Shockey as the new head of defense and space sales.

Overall, Boeing reported higher than anticipated income of $3.13 billion for the quarter. The gains were driven in part by tax law changes, as well as strong demand across the board.