Defense contractor Raytheon Company (RTN) teamed up with the Norwegian defense firm NAMMO to procure rocket engines for AIM -120 Advanced Medium Range Air-to-Air Missile (‘AMRAAM’).
The engines will be compatible with the AMRAAM propulsion system, while maintaining the performance level of the world’s most capable beyond-visual range air-to-air missile. This new agreement will secure an alternate source of engines and allow Raytheon to meet the demands for this missile in the U.S and its allied nations.
AMRAAM has a global demand among the defense establishment due to its beyond visual range capabilities and all weather day and night performance. Along with its established benefits, the incorporation of the latest digital technology and up-to-date active radar guidance in AMRAAM ensures dependability, while making the missile cost effective for owners. Hence, these missiles are widely used in a variety of U.S. fighter aircrafts and feature in missile portfolios in 35 countries around the world.
Raytheon's unit, Missile Systems, designs, develops, and produces missile systems for U.S. and allied forces, including the manufacture of AMRAAM. This unit accounted for 22% of the total revenue for Raytheon in the first quarter of 2011. This unit ended the quarter with a total backlog of $7.7 billion.
Missile Systems has received consistent orders from the defense departments. In April 2011, it received a contract worth $173 million from the U.S. Army to produce Excalibur precision-guided projectiles. The same month saw the Raytheon business wing receiving another contract worth $42 million for the initial concept development and program planning for the Standard Missile-3 Block IIB.
Raytheon currently retains a Zacks #3 Rank (short-term Hold rating). The company competes with the likes of Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
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.
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