Raytheon gets $418 Million for Missile Work in AZ & AL

Late Monday afternoon the Phoenix Business Journal reported that Raytheon’s Arizona-based missile division has received a $200.5 million weapons order from the U.S. military and five U.S. allies including Saudi Arabia and Kuwait.

The U.S. Defense Department announced the contract Monday for its AIM-9X Sidewinder air-to-air missile as well as air-to-air training missiles.

Raytheon is to provide 532 missiles total to the U.S. Navy and Air Force as well as the governments of Malaysia, Morocco, Oman, Kuwait and Saudi Arabia, according to the Pentagon’s contract announcement.

The bulk of the work will be done at Raytheon’s 10,000-worker missile division in Tucson. See full story here: https://www.bizjournals.com/phoenix/news/2013/08/12/raytheon-gets-200-million-contract.html

This follows last week’s announcement of a $218 million contract by the Missile Defense Agency to complete the assembly and delivery of 29 Standard Missile-3 Block IB missiles. Launched off U.S. Navy ships, SM-3 interceptors protect the U.S. and its allies by destroying incoming short-, medium-, and intermediate-range ballistic missile threats by colliding with them in space.

“The three back-to-back successful SM-3 Block IB flight tests have demonstrated the missile’s advanced capabilities and reliability against various threats in a variety of mission scenarios,” said Dr. Taylor Lawrence, Raytheon Missile Systems president. “Combatant commanders around the world are eager to build up their inventories in support of Phase 2 of the Phased Adaptive Approach starting in 2015.”

According to the release, final assembly will take place in Raytheon’s new, state-of-the-art Redstone Missile Integration Facility in Huntsville, Ala. Guidance sections and guidance units will be built at the Raytheon Missile Systems Space Factory in Tucson, Ariz.

“The Redstone Missile Integration Facility will prove critical as we ramp up our manufacturing capacity on the path to SM-3 Block IB full-rate production,” said Dr. Mitch Stevison, Raytheon Missile Systems’ SM-3 program director.

Raytheon’s Q2 2013 financial results reported net sales increased 2.1% YoY to $6.1 billion. Net income attributable to Raytheon was $488 million or $1.50 per diluted share in Q2 2013 compared to $472 million or $1.41 per diluted share in Q2 2012. Commenting on the results, William H. Swanson, Raytheon’s Chairman and Chief Executive Officer, said, “Our world class technology and innovation have positioned us well to meet the global security needs of our customers, and strong program execution drove solid operating performance in the second quarter.”

Raytheon (NYSE:RTN) stock opened this morning at $76.10 up 11% in after hour trading.