The U.S. Defense Security Cooperation Agency notified Congress Monday of plans to sell the Republic of Korea a package of AIM-9X-2 Sidewinder Missiles, plus associated equipment, parts, and training services. If approved, this sale will mean approximately $98 million in incremental revenues to Raytheon Company (NYSE:RTN), which manufactures the missiles.

The specific equipment that South Korea is asking to buy includes:

  • 76 AIM-9X-2 Sidewinder Block II All-Up-Round Missiles.
  • 24 CATM-9X-2 Captive Air Training Missiles (dummy missiles used in training exercises).
  • Eight CATM-9X-2 Block II Missile Guidance and Control Units (GCUs), which contain most of the missiles' electronics.
  • Four AIM-9X-2 Block II "Tactical Guidance Units."
  • Containers for the missiles, spare parts, missile support and testing equipment, and similar hardware. 

Explaining the sale to Congress, DSCA noted that "the ROK continues to be an important force for peace, political stability, and economic progress in North East Asia," and that it intends to use these missiles "to strengthen its homeland defense and deter regional threats."

According to DSCA, "there will be no adverse impact on U.S. defense readiness as a result of this proposed sale." Nor will the sale "alter the basic military balance in the region." 

Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Raytheon. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Compare Brokers