Raytheon Wins $70.5 Million in New Missile Contracts

On a slow day for Defense Department awards, Raytheon  (NYSE: RTN  ) made out pretty well on Thursday, scoring a pair of Pentagon contracts worth a combined $70.5 million.

The larger of the two awards, weighing in at a hefty $49.9 million, came in the form of a modification to a sole-source cost-plus-fixed-fee contract to perform engineering work on Standard Missile-3 Block IB -- its second such award in as many months. SM-3IB is the latest version of Raytheon's Standard surface-to-air missile and aims to enhance the original's effectiveness with enhanced, two-color infrared target seeking and the use of short bursts of precision propulsion to steer the missile toward incoming targets. The SM-3IB is expected to go into service in 2015, and Raytheon's work on the instant contract will be completed by Dec. 31, 2013.

Raytheon's other contract of the day, worth $20.6 million, was a modification to a previously awarded firm-fixed-price contract to procure tube-launched, optically tracked, wireless-guided missiles. To date, and counting this latest modification, this original contact has been modified so as to raise its cumulative value to nearly $203 million.

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.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2347914, ~/Articles/ArticleHandler.aspx, 3/27/2015 11:48:18 AM

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...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!