This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Boeing, Siemens Energize Via Energy Deal

ST. LOUIS ( TheStreet) -- Two small units of Boeing (BA - Get Report) and Siemens (SI) said Monday they formed an alliance to seek Defense Department contracts to provide efficient energy management at military installations.

Boeing Energy, a start-up energy smart grid development and management venture created late in 2009, is an entrepreneurial effort within Boeing's Defense, Space and Security, which accounted for about half -- $31.9 billion -- of Boeing's total 2010 revenues.

The joint project "is the top priority for what we're working on at Boeing Energy," said Tim Noonan, vice president of Boeing Energy, during a conference call with reporters. "We see the Department of Defense as having a solid pain point here. We think we can drive it to other commercial markets."

Judy Marks, who heads Siemens U.S. Federal Business unit, said Siemens, known for energy management systems, has been discussing an alliance with Boeing for about a year. "We needed a partner that had the ability to understand even more than us how the government operated and how to integrate on a large scale and has an enterprise approach to cyber-security. We wanted a partner who lived in that domain within DOD."

The two executives declined to discuss financial arrangements except to say that the defense department spends about $20 billion annually on fuel and electricity. They will mount an effort to secure department contracts. "This is a nascent market," Marks said. "We are seeing a lot of contracts coming to the forefront."

The Defense Department accounts for about 1% of all U.S. energy consumption, she noted.

Asked if Boeing and Siemens are late to the game, Noonan said, "This market is undergoing tremendous transformation. We think it is open for quite a while. We have taken a measured approach to assure our approach is differentiated and we have something that makes a difference."

-- Written by Ted Reed in Charlotte, N.C. .

>To contact the writer of this article, click here: Ted Reed

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SI $0.00 0.00%
BA $148.85 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs