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Boeing Defense Executive: Further US Defense-Budget Cuts Can Hurt Jobs

SINAGPORE -(Dow Jones)- Any further cuts in U.S. defense spending will have a devastating impact on suppliers and could potentially cause thousands of jobs to be lost, according to Boeing Co. (BA) executive Dennis Muilenburg Friday. Boeing's defense division had to shed about 8,000 jobs in the past two years following the first round of U.S. budget cuts and Muilenburg, who is president and chief executive for defense, space and security business, told reporters in Singapore. He said the loss of business in the company's biggest market is partially being offset by sales in other markets. He expects the share of revenue from international sales to rise to between 25 per cent and 30 percent in coming years with Asia Pacific accounting for roughly half of international sales. The company earned 24% of its defense revenue from outside the U.S. last year, he said. Muilenburg said South Korea is likely to finalize a contract for fighter jets by the end of this year. Boeing has offered it F-15 'Silent Eagle' jets. -By Gaurav Raghuvanshi, Dow Jones Newswires; (65) 6415 4154, Gaurav.Raghuvanshi@dowjones.com

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