Cost overruns with its troubled KC-46 tanker aircraft and the reaction to the worldwide COVID-19 pandemic are among the reasons Boeing was passed by Lockheed Martin as the largest U.S. aerospace and defense firm.
According to Defense One, a publication that covers military issues, Chicago-based Boeing gave up its long-held top spot after reporting dismal financial results from 2020.
Boeing closed the year with just under $58.2 billion in revenue, down 24 percent from 2019. Meanwhile Lockheed reported $65.4 billion in 2020 sales, according to Defense One.
Although Lockheed’s military business is larger, revenue from Boeing’s commercial airplane operation had consistently put it over the top — until last year.
“2020 was a year of profound societal and global disruption which significantly constrained our industry,” Boeing President Dave Calhoun said in a statement. “The deep impact of the pandemic on commercial air travel, coupled with the 737 MAX grounding, challenged our results.”
Pentagon officials have said U.S. defense spending is expected to flatten or even decline in the future as the Biden administration focuses its attention on domestic issues.
• Mike Glenn can be reached at mglenn@washingtontimes.com.
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