(By Balaseshan) Weapons maker Raytheon Co. (NYSE:RTN) said it received a $338 million contract from the U.S. Navy for the Tomahawk Block IV tactical cruise missile.
The contract calls for Raytheon to build and deliver the Tomahawk Block IV cruise missiles, and provide warranties, flight test and life-cycle support. Production is scheduled to begin this year.
The U.S. Navy's Tomahawk program manager Joseph Mauser said Tomahawk Block IV is important for U.S. national security because it enables commanders to precisely engage heavily-defended and high-value targets from extremely long distance.
The contract, which was announced by the Department of Defense on June 7, includes replenishment of weapons used during Operation ODYSSEY DAWN and procurement for the government's fiscal 2012.
The company said the Tomahawk Block IV, with a range of more than 1,000 nautical miles (1,150 statute miles), is a surface- and submarine-launched, precision-strike, stand-off weapon. Tomahawk is designed for long-range precision-strike missions against high-value and heavily defended targets, such as integrated air defense systems.
Tomahawk Block IV employs a two-way satellite datalink that enables a strike controller to flex the missile in flight to pre-programmed alternate targets or redirect it to a new target. This targeting flexibility includes the capability to loiter over the battlefield and await a more critical target.
RTN is trading up 0.31% at $51.42 on Friday. The stock has been trading between $38.35 and $54.69 for the past 52 weeks.