December 29, 2012
On Friday, the U.S. Department of Defense announced it has awarded Raytheon (NYSE: RTN ) a contract modification to its previously awarded fixed-price incentive, cost-plus-fixed-fee contract to install mission systems equipment on the ultramodern Zumwalt-class destroyers DDG 1000 and DDG 1001 (the USS Zumwalt and the USS Michael Monsoor, respectively), as well as "non-hatchable mission systems equipment" on a planned DDG 1002 -- the USS Lyndon B. Johnson.
At present, only three destroyers are anticipated to be built in the Zumwalt line, ultimately costing taxpayers some $3.3 billion apiece. The current Raytheon contract, however, is "not to exceed" $169 million in value. The ships themselves are being built by defense contractors General Dynamics (NYSE: GD ) and Huntington Ingalls (NYSE: HII ) .
Raytheon shares closed down 1% Friday, ahead of the announcement, at $56.70.