New York, June 14, 2013 -- On 13 June 2013, the Bell Boeing V-22 Program, a strategic alliance between Textron Inc.'s (Textron, Baa3 Stable) Bell Helicopter Segment and The Boeing Company's (Boeing, A2 Stable) Defense, Space & Security Segment was awarded a five-year contract for 99 V-22 Osprey Tiltrotor Aircraft with a value estimated at over $6 billion (including a $1.4 billion preliminary contract won in December 2012). Moody's says this order includes 92 MV-22 models for the US Marine Corps, seven CV-22 models for the US Air Force Special Operations Command, and a provision permitting the US Naval Air Systems Command to order up to 23 additional aircraft. The award is credit positive for both companies, as it enables continued long-term production of this key military aircraft platform. While an important win for both companies, it is particularly important for Textron as the strength of Bell is a key driver of Textron's forward revenue, earnings, and free cash flow generation, particularly as the challenging business jet market continues to impact its Cessna unit. In contrast, Boeing's forward prospects are more closely tied to the current upcycle in commercial aerospace than its defense programs; in 2012, nearly 60% of Boeing's sales and almost 75% of its earnings were derived from its Commercial Airplanes Segment.

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