Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Raytheon to Partner With Thales in Upgrading TOW Missiles

Raytheon (NYSE: RTN  ) is giving one of its marquee weapons systems a makeover.

Announcing a partnership with European defense contractor Thales on Monday, Raytheon says it and its partner will invest millions of dollars and at least 27 months of work into improving the functionality of Raytheon's TOW weapons system. The companies will also cooperate in manufacturing the missiles for their customers over the course of a five-year production agreement.

Raytheon's TOW missile. Photo: Wikimedia Commons.

Last year, Raytheon made headlines with a deal to export 15,699 TOW missiles for use by the Royal Saudi Land Force in Saudi Arabia.

Short for "Tube-launched, Optically tracked, Wireless-guided," the TOW missile is one of Raytheon's most famous weapons systems -- and one of its most popular with buyers both in the U.S. and abroad. The TOW was designed as an anti-tank weapon. Until its advent, such weapons usually fell into one of two categories: (1) "fire and forget" missiles that were not guided, but aimed and fired -- and hopefully hit their target or (2) attached to a wire, and guided via that wire toward their target.

The optically guided TOW needs no wire, yet as a guided missile, it is more accurate than its unguided forebears. In a statement, Raytheon noted that the missile gives its buyers "affordable precision" in their anti-tank weapons. In addition to addressing (unspecified) "obsolescence issues" with the missile, Raytheon said it will be working with Thales to incorporate "cost saving technologies" into the TOW. Raytheon says it has delivered more than 675,000 TOW missiles to U.S. and allied warfighters.

According to Monday's press release, Thale has committed roughly $20 million.

Although not the company's most profitable division, Raytheon's Missile Systems unit, which makes the missiles, accounted for 27.8% of sales booked last year. This makes it the company's largest division by revenues.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

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: 2996335, ~/Articles/ArticleHandler.aspx, 8/28/2015 11:12:17 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...

Rich Smith

As a defense writer for The Motley Fool, I focus on defense and aerospace stocks. My job? Every day of the week, I'm monitoring the news, figuring out the winners and losers, and tracking down the promising companies for you to invest in. Follow me on Twitter or Facebook for the most important developments in defense & aerospace, and other great stories.

Today's Market

updated 1 hour ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:03 PM
RTN $104.25 Down -0.86 -0.82%
Raytheon Company CAPS Rating: ****