(By Balaseshan) Raytheon Co. (NYSE: RTN) said it has received a contract worth $254.6 million from the U.S. Navy to procure Tomahawk Block IV tactical cruise missiles for fiscal 2013.
The contract calls for Raytheon to build and deliver Tomahawk Block IV cruise missiles, conduct flight tests and provide life-cycle support. Production and delivery of the missiles is scheduled to begin in 2013.
A major enhancement to the Tomahawk Block IV missile includes a two-way satellite data-link that enables a strike controller to redirect the missile in-flight to pre-programmed alternate targets or more critical targets.
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The contract was announced by the Department of Defense on December 17, 2012, and was awarded in Raytheon's fourth quarter.
With a range of about 1,000 statute miles, the Tomahawk Block IV missile 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.
"Tomahawk has an excellent record of reliability, effectiveness and accuracy. No other tactical cruise missile in the world can come close to matching it. This missile provides unparalleled capability and has greatly contributed to the security of our country and our allies," said Harry Schulte, vice president of Air Warfare Systems for Raytheon Missile Systems.
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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 down 0.46% at $59.01 on Friday. The stock has been trading between $46.99 and $59.34 for the past 52 weeks.