) announced that it received a $338 million contract from the U.S.
Navy to produce the Tomahawk Block IV tactical cruise missile. The
new missiles will replenish the used Tomahawks in Operation ODYSSEY
DAWN in Libya and fulfill the government's requirement in fiscal
Tomahawk has become an important weapon in the U.S. defense
arsenal for its precise capability to take out high value target
from a very long distance. These missiles have a range of 1,000
nautical miles (1,150 statute miles) and can be launched both from
surface and submarines.
The new Tomahawk missiles have developed over the years.
Presently Tomahawk Block IV employs a two-way satellite datalink.
This feature provides more flexibility to the missiles, allowing
them to change its course and circle over the battlefield to
neutralize a far more critical target. Till date, the U.S. Army has
used more than 2,000 Tomahawks in combat helping it gain an edge
over its opponents in its international missions.
Per the current contact with the Navy Raytheon will supply the
missiles and also provide warranties, flight test and life-cycle
support. Raytheon's Missile Systems' Air Warfare Systems
produces the Tomahawks. The first quarter 2012 sales of this
segment were higher year over year primarily due to Excalibur
Missile Systems contributes substantially to Raytheon's yearly
revenue. The company expects 2012 revenue to be between $24.5
billion and $25 billion with $5.5 billion to $5.7 billion expected
to come from Missile Systems. We believe the increasing utilization
of advance missiles by the U.S. Army and its allies has contributed
to the success of this division.
Raytheon Company presently retains a short-term Zacks #3 Rank,
which translates into a Hold rating. Its peer,
Northrop Grumman Corporation
), presently holds a short term Zacks #2 (Buy rating).
Based in Massachusetts, Raytheon Company deals 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.
NORTHROP GRUMMN (NOC): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
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