Defense contractor Raytheon Company (RTN) got a $240 million U.S. Navy contract for production and delivery of critical components of the Aegis weapons system for the Arleigh Burke class of destroyers.
Aegis Weapon System is a sea-based Ballistic Missile Defense System. The system can simultaneously target the opponent on land and sea, while automatically implementing defenses to protect the fleet against hostile aircraft and missiles. Apart from the U.S Navy, this defense system is used by the navy of Australia, Japan, Norway the Republic of Korea and Spain.
Under the contract, Raytheon Integrated Defense Systems segment (IDS) will provide production, engineering and support services for radar and fire control system equipment essential to the Aegis weapon system’s ability to track and defend against multiple threats, including planes and missiles.
Work on the Aegis program is performed at various destinations, which include Raytheon IDS’ Surveillance and Sensors Center, Sudbury, Massachusetts; at the Seapower Capability Center, Portsmouth, Rhode Island; and at the Integrated Air Defense Center, Andover, Massachusetts.
Raytheon’s IDS segment headquartered in Tewksbury, Massachusetts, is a leader in global capabilities integration, providing affordable, integrated solutions to a broad international and domestic customer base. IDS leverages its core domain knowledge and capabilities in sensors, command, control and communication, effects and mission support, to provide integrated naval, air and missile defense and civil security response solutions.
Key domestic customers include the U.S. Navy, Army and Air Force, and the U.S. Missile Defense Agency. Key international customers include Japan, Saudi Arabia, UAE, Taiwan, Australia, Germany, Korea and Finland.
Based in Waltham, Massachusetts, Raytheon Company, along with its subsidiaries, provides electronics, mission systems integration, apart from other capabilities in the areas of sensing, effects, command, control, communications and intelligence systems, as well as mission support services to its global customers.
Raytheon currently retains a Zacks #3 Rank (short-term Hold rating) in line with its closest peers L-3 Communications Holdings Inc. (LLL) and Herley Industries Inc. (HRLY). We presently maintain a Neutral rating on the stock.
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