THE DAILY FED
Boeing Buys Rockwell Units
Boeing Co., the nation's fourth-ranked federal contractor, announced today it is purchasing most of the defense and aerospace businesses of 10th-ranked Rockwell International in a $3 billion deal.
For years, Rockwell, which manufactures B-1 bombers, space shuttles and a series of other defense and aerospace products for the government, has been reducing its dependence on federal contracts. In fiscal 1995, the company's commercial and international businesses grew 30 percent to comprise 72 percent of the company's $12.9 billion in sales. In 1985, by contrast, 63 percent of the corporation's revenues came from government contracts.
Rockwell received $2.6 billion in federal prime contracts in excess of $25,000 last year, according to Government Executive's analysis of the Top 200 federal contractors. Boeing received $4.2 billion in contract awards.
The deal seems certain to make Boeing the largest NASA contractor. Boeing ranked second to Lockheed Martin among the space agency's contractors last year, with $1.6 billion in awards. Rockwell took in $1.3 billion in NASA awards.