) clinched an extended Lot 2 contract to carry on with the full
production of High-Speed Anti-Radiation Missile ("HARM") Control
Section Modification ("HCSM") upgrade units. The U.S. Air Force
contract is priced at $14 million.
Raytheon has collaborated with
Honeywell International Inc.
Rockwell Collins Inc.
) and others for the HCSM program. The HCSM components are
scheduled for shipment in the fourth quarter of 2013.
The HARM missile is a major battle space product which
suppresses or destroys surface-to-air missile radars, early
warning radars and radar-directed air defense artillery systems.
The HCSM modernization includes the addition of a Global
Positioning Satellite receiver and an improved inertial
measurement unit that improves navigation accuracy.
This would give HARM the ability to engage time-critical
targets thus making enemy airspace worldwide safer for U.S. and
allied war fighters. The HCSM system also includes a digital
flight computer that combines targeting solutions from navigation
and seeker systems.
Raytheon initiated modification work on the existing HARMs in
early 2013 when it received a contract extension worth $12.3
million. The company is one of the few major defense players that
have added some high-priced contracts to its portfolio.
Notable recent wins include the $136.2 million contract from
the Navy to remanufacture, overhaul and upgrade 19 Phalanx
Close-in Weapon Systems and produce four SeaRAM Anti-ship Missile
Besides securing sizeable domestic contracts, Raytheon picked
up international contracts as well. Last month, the company
debuted with its first border security contract in Southeast Asia
by receiving a Defense Threat Reduction Agency maritime deal from
the Philippines government.
Raytheon is also keen on technological advancements. Its
latest offering was a remotely operated, mast-mounted, long-range
reconnaissance and surveillance forward looking infrared system
which improves situational awareness in battlefield conditions
and increases the safety of land forces.
The blend of domestic as well as foreign contracts bodes well
for the company's long-term growth prospects. Currently, Raytheon
carries a Zacks Rank #2 (Buy). Another well-placed defense
operator is Zacks Ranked #2
Northrop Grumman Corp.
ROCKWELL COLLIN (COL): Free Stock Analysis
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RAYTHEON CO (RTN): Free Stock Analysis Report
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