) has clinched a Defense Threat Reduction Agency or DTRA contract
for maritime border security in the Philippines. This marks the
first border security-related contract from Southeast Asia.
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Per the two-year base contract, Raytheon is responsible for
designing and developing a National Coast Watch Center (NCWC),
thereby integrating data from various agencies into the NCWC. The
company will also install and provide training on an automatic
identification system as well as radio communications for the
government of the Philippines.
This contract, with an extension option, was awarded in Jul 2013
and will end on Jul 31, 2015. If all options are exercised, the
contract could be worth up to $18 million.
Raytheon has worked with the DTRA − a U.S. Department of Defense
unit for interdicting the movement of weapons of mass destruction
(WMD) − on cooperative threat reduction operations under a number
of contracts. In April, Raytheon won a three-year, $35.9 million
DTRA border security agreement. Per the agreement, Raytheon is
responsible for designing, developing and implementing an
integrated surveillance system along sections of the Jordanian
border. The company will also provide training, maintenance and
repair, as well as equipment. In fact, the Jordan venture is a
part of the CTR Integrating Contract (CTRIC II), from Apr 2011,
in this field.
Based in Waltham, Mass., Raytheon Company is a technology and
innovation leader specializing in defense, homeland security and
other government markets throughout the world. Going forward,
revenue and earnings growth would continue to be driven by its
strong presence in the areas of Intelligence, Surveillance and
Reconnaissance (ISR); air & missile defense systems; border
security; air traffic management; training and homeland security;
and cyber security. The company remains actively involved in a
number of classified U.S. government programs, principally
through its IIS and SAS business segments.
Among the large-cap defense players, Raytheon is one of the
best-positioned companies. Late last month, the company reported
its second quarter 2013 earnings that exceeded our expectation by
26.1% and were also above the year-ago profit level by 4.5%. The
beat was driven by strong program execution and the ability of
the company to match the security needs of its customers through
premium quality products.
State-of-the-art technology and missiles developed by the company
allow it to have a competitive edge and ensure a continuous flow
of contracts from the U.S. defense department and from its global
Raytheon currently holds a Zacks Rank #2 (Buy). Other defense
operators also worth mentioning are Zacks Ranked #2 (Buy)
Lockheed Martin Corp.
Huntington Ingalls Industries, Inc.
Northrop Grumman Corporation