(By Balaseshan) Raytheon Co. (NYSE: RTN), a technology company specializing in defense, homeland security and other government markets worldwide, said it has received a contract worth $108 million Standard Missile-2 all-up rounds production from U.S. Navy.
The U.S. Navy awarded Raytheon a contract for continued production of Standard Missile-2 all-up rounds, a majority of which will be sold to U.S. allies through foreign military sales. This award brings the total fiscal year 2011 contract value to more than $200 million.
The Waltham, Massachusetts-based company said SM-2 is deployed by the U.S. and eight allied navies. The missile provides high- and low-altitude intercept capabilities and performance against advanced anti-ship missile threats.
"The U.S. Navy has committed to supporting SM-2 past 2035, and this contract award reflects our international partners' desire to maintain this key defensive asset in their inventories," said Michael Campisi, Raytheon Missile Systems' senior director for SM-2 and SM-6 production.
SM-2 is the world's premier fleet-area air defense weapon, providing protection from a wide range of advanced threats. SM-2 has been integrated with both Aegis and non-Aegis combat weapon systems.
The missile can be launched from the MK-41, MK-13 and MK-26 launchers. SM-2 has an extensive flight test history of more than 2,500 successful flight tests.
"The SM-2 production line is open for all our allies' requirements, and there will be full mission support available throughout the lifecycle of this critical asset. SM-2 has been the primary surface-to-air fleet-air defense weapon of choice for decades. It's an extremely effective, relevant weapon that will continue to protect navies around the globe for many years to come," said Campisi.
The company provides electronics, mission systems integration and other capabilities in the areas of sensing, effects, and command, control, communications and intelligence systems (C3I), as well as a range of mission support services.
RTN is trading up 0.35% at $57.69 on Monday. The stock has been trading between $45.06 and $58.70 for the past 52 weeks.