Raytheon UK, an affiliate of
), received an award from the Royal Netherlands Air Force
("RNLAF") to upgrade four additional Airport Surveillance Radar
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This latest award − the value of which was not disclosed −
follows Raytheon's successful implementation of the first Wind
Farm Mitigation upgrade at Dutch Air Force's Woensdrecht Air
Base. The upgrade is scheduled to be completed within 12-15
months and comprises enhanced technology such as WiMax
interference filtering for discriminating the actual targets from
the false ones that are caused by the blades of wind turbines at
Extensive research and development for about three years has led
to a thorough modernization of the air traffic control radar
system. This advanced technology aims to alleviate the adverse
effects on radar performance caused by wind turbines.
The Mass. based aerospace and defense contractor, Raytheon now
remains upbeat following its success in the Netherlands. The
company is in talks with customers in Europe, the U.S. and Canada
for the utilization of this pack of mitigation solutions.
Raytheon is one of the best-positioned companies among the
large-cap defense players, such as,
Northrop Grumman Corp.
Lockheed Martin Corporation
General Dynamics Corporation
), owing to its non-platform-centric focus. Again, rising
international sales, substantial presence in the classified
market, strong order bookings and order backlog, strong cash flow
generation and focus on shareholder value are added incentives.
In fact, Raytheon draws a significant portion of its revenue from
international sales, more than any other major U.S. weapons
maker. The company expects a 20% surge in international bookings
However, we remain concerned about apprehensions over the future
growth of the U.S. defense budget, the fate of high-cost
programs, risks related to key project executions and order
Raytheon retains a Zacks Rank #3 (Hold), implying that it is
expected to trade in line with the broader U.S. equity market
over the next one to three months.