The wave of defence orders continued to carry sales and earnings in the sector during the first quarter of the year, although expectations of "challenging market conditions" were almost universal and the impact of commercial contractions was evident.

 Companies such as Boeing Integrated Defense Systems (IDS), L-3 Communications and Lockheed Martin told investors to look towards further growth in 2009, reflecting continued strong backlogs and relatively long-term visibility.

The ultimate impact of the new procurement direction in the US is still being assessed, however, with Boeing one of a number of contractors working to "determine the potential effects on its business outlook".

Boeing said on 22 April that it planned to increase its focus on international defence opportunities, while pursuing adjacent markets in the United States.

Boeing appeared to bear the brunt of the blows from the budget proposals put forward by US Defense Secretary Robert Gates on 6 April, which included no planned additional funding for the group's C-17 Globemaster heavy airlifter; the cancellation of the second Boeing Airborne Laser (ABL) demonstration programme; and a significant restructuring of the Boeing-led Future Combat System project.

On 22 April Boeing posted a 3 per cent increase in consolidated revenues of USD15.5 billion, although net profit fell from USD1.2 billion in 1Q08 to USD610 million in 1Q09.