Raytheon Awarded $169 Million for Zumwalt Work

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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.


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Related Tickers

10/24/2016 2:51 PM
GD $151.66 Up +1.48 +0.99%
General Dynamics CAPS Rating: ****
HII $155.89 Up +0.21 +0.13%
Huntington Ingalls… CAPS Rating: ****
RTN $137.80 Up +1.07 +0.78%
Raytheon CAPS Rating: ****