Integrated Defense Systems ("IDS"), of
) has received a contract worth $45.3 million to supply MK 54
lightweight torpedo hardware ("LHT"), test equipment, spares and
related engineering and repair services. The task will be
performed for U.S. Navy for its fleet inventory and for the Royal
Australian Navy and the Indian Navy in support of foreign
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RAYTHEON CO (RTN): Free Stock Analysis Report
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The Mark 54 LHT is a standard 12.75 inch antisubmarine warfare
("ASW") torpedo used by the United States Navy. It is the
next-generation anti-submarine warfare weapon and is set up from
surface ships, helicopters and fixed-wing aircrafts. It consists
of sophisticated processing algorithms that allow it to analyze
the information, edit false targets or countermeasure and detect
and attack underwater targets.
MK 54 is the primary weapon for the MH-60R maritime helicopter's
ASW mission. Well designed for both deep water and littoral
environments, MK 54 is the only lightweight torpedo that has the
potential to strike any underwater target in the world's oceans,
regardless of water depth.
In collaboration with the U.S. Navy, the company works to meet
the lightweight torpedo requirements of the U.S. and its allied
fleets. With an established infrastructure and experienced
workforce co-located with the Naval Undersea Warfare Center,
Keyport, Washington, the company continues to advance the
development of the world's most effective lightweight torpedo,
delivering its proven capabilities to meet the anti-submarine
warfare needs of the U.S. and its allied fleets.
IDS segment provides integrated air and missile defense and naval
and maritime war-fighting solutions. The segment mainly caters to
the U.S. Navy, Army, Air Force and Marine Corps, and the
Department of Homeland Security ("DHS"). Recently, the segment
had received a $125.3 million contract from The Missile Defense
Agency ("MDA") and the U.S. Air Force. As per the contract, the
company will be involved in the modernization and addition of a
new competence power to an Air Force early warning radar ("EWR")
Defense spending is the major source of revenue for the aerospace
and defense companies, with the US accounting for more than 40%
of total global defense spending. Recently, Raytheon received a
$349 million five-year, multi-year contract to provide heavy
anti-tank, wireless precision-assault missiles to the U.S.
government. Under this contract, Raytheon will deliver 6,676 of
the new wireless tube-launched, optically tracked,
wireless-guided ("TOW") missiles that receive commands from the
gunner through a wireless guidance link, eliminating the need of
wire connection as seen in the previous generations of the
Based in Massachusetts, Raytheon Company is one of the largest
aerospace and defense companies in the U.S., with a diversified
line of military products, including missiles, radars, sensors,
surveillance and reconnaissance equipment, communication and
information systems, naval systems, air traffic control systems,
and technical services.
Looking forward, the company enjoys an improving balance sheet,
growing cash flow, and operational improvements. Future growth
will be driven by its focus on ISR unmanned systems, training,
cyber security, Standard Missile-6, Patriot, Zumwalt and THAAD.
However, this is offset by 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 cancellations.
Raytheon presently retains a short-term Zacks #3 Rank (Hold) that
corresponds with our long-term Neutral recommendation on the
The company mainly competes with
L-3 Communications Holdings Inc.
Espey Mfg. & Electronics Corp.