Raytheon Awarded $422 Million Contract

Defense contractor and munitions producer Raytheon (NYSE: RTN  ) was awarded a $422 million contract on Wednesday, according to a press release from the company. The contract is for the commercial sale of the company's series of Paveway II laser- and GPS-guided bombs, which have so far been sold to more than 40 international customers.

Guided precision munitions such as the Paveway II are key elements of the U.S. military's approach to modern combat, converting standard bombs and munitions into "smart" weapons capable of highly accurate strikes. As Raytheon Missile System president Dr. Taylor W. Lawrence illustrated in the release:

Paveway™ has revolutionized tactical air-to-ground warfare by providing the warfighter unparalleled accuracy and standoff capability, proving itself in every major conflict in which it has been used.

The Paveway series has been heavily used in recent conflicts. Raytheon claims that Paveway munitions made up more than half of air-to-ground precision weapons in the latest Iraq and Afghanistan wars.

Shares of Raytheon rose slightly on Wednesday, aided by the news, picking up gains of nearly 0.5%.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2133649, ~/Articles/ArticleHandler.aspx, 4/20/2014 10:26:18 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement