Raytheon Company (NYSE: RTN) announced that its RTN Missiles Systems recently won a foreign military sales contract worth $643.2 million to manufacture the 31st Lot of Advanced Medium-Range Air-to-Air Missile (AMRAAM).
The contract was awarded by the Air Force Life Cycle Management Center, Eglin Air Force Base, Florida. The company will make other AMRAAM system items, including spares and telemetry kits, along with AMRAAM. The deal will cater to Japan, Korea, Morocco, Poland, Indonesia, Romania, Spain, Turkey, Bahrain and Qatar.
As per Raytheon, in the air-to-air role, no other missile compares to the AMRAAM missile. The weapon's advanced active guidance section provides aircrew with a high degree of combat flexibility and lethality. This weapon has been procured by as many as 37 nations, including the United States. It has been installed in top-quality military jets like F-16, F-15, F/A-18, F-22, Typhoon, Gripen, Tornado and Harrier.
Raytheon’s Missile Systems segment has been winning significant awards from the United States as well as international customers, courtesy of its high-end, combat-proven advanced arsenal. Toward this end, the company won a $302-million modification contract from the U.S. Navy for procuring 618 Joint Standoff Weapon (JSOW) air-to-ground missiles and related spare parts last month.
Based on the 10% sales growth at Missile Systems in third-quarter 2017 and the growing demand for Raytheon’s Integrated Air and Missile Defense portfolio in domestic as well as international markets, analysts expect this unit to scale new highs. This is further supported by the raised fourth-quarter sales outlook for this unit announced by Raytheon during the third-quarter earnings call.
Raytheon’s stock has returned 32.3% over a year, outperforming the 30.9% rally of its industry.