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Jim Cramer Says Boeing's New Contracts Don't Mean Much

Boeing secured two new contracts, but is it enough for Boeing? Here's what Jim Cramer thinks.

What's going on with Boeing?

The company has received two contracts worth a combined $2.6 billion to produce air-to-surface and anti-ship missiles for Saudi Arabia and other countries.

The Department of Defense announced that Chicago-based Boeing has been awarded the contracts to both produce and deliver missiles and also modernize so-called Harpoon and Standoff Land Attack Missile Expanded Response, or SLAM ER weapon systems.

The first contract, worth $1.97 billion, is for the modernization of SLAM ER cruise missiles as well as delivery of 650 new missiles "in support of the government of Saudi Arabia," the Pentagon said.

And the second, $650 million contract is for delivery of 467 new Harpoon Block II anti-ship missiles, including more than 400 to Saudi Arabia.

In its own statement, Boeing said the new contracts would ensure the continuation of the Harpoon program through 2026 and restart its SLAM ER production line. Boeing delivered its last SLAM ER weapon system in 2008.

“We are pleased to continue our long legacy of partnering with the Navy to build weapons that defend America and its international partners,” said Cindy Gruensfelder, vice president of Boeing Weapons. “These awards will not only extend production of the Harpoon program through 2026, they will also restart the production line for SLAM ER and ensure deliveries through 2028.”

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