Raytheon Wins $72M Deal For Aegis FCS Equipment Production
Zacks Investment Research | Dec 26, 2018 08:15PM ET
Raytheon Company’s (NYSE:RTN) Integrated Defense Systems (IDS) business division recently secured a $72.5-million contract for the production of Fire control system (FSC) MK 99 equipment for the Advanced Electronic Guidance and Instrumentation System (Aegis) Weapon System along with other associated engineering services. The deal was awarded by the Naval Sea Systems Command, Washington, DC.
Work related to the deal will be majorly executed in Andover, MA, while the remaining work will be carried out in Marlborough, MA, and Chesapeake, VA, along with various other locations across the United States. The entire task is expected to get completed by April 2022.
A Brief Note on AEGIS and FCS MK 99
Aegis is an integrated missile guidance system used by U.S. Navy and allied ships to shield the fleet against aircraft, cruise missiles and ballistic missiles. It is also capable of simultaneously launching attacks on land targets, submarines and surface ships.
The FCS MK-99 is a major component of the AEGIS Combat System, which controls the loading, arming and launching of the selected weapon, and provides terminal guidance for Anti-aircraft warfare (AAW) missiles. FCS controls the continuous wave illuminating radar with a very high probability of kill. The MK-99 FCS also controls the target illumination for the terminal guidance of Ship Launched SM-2 Anti-Air Missiles.
What Favors Raytheon?
Increasing geo-political tensions across the globe have prompted nations to strengthen their arsenal with technologically advanced missile defense systems. To this end, Raytheon’s advanced IDS segment has been clinching pivotal contracts from the United States and overseas customers, owing to its high-end, missile defense systems.
Furthermore, Raytheon’s IDS segment also benefits from providing product modernization requirements, engineering services and other technical assistance for the Aegis Combat System. Notably, the company benefits a great deal from the Aegis system’s strong demand worldwide.
Price Movement
Raytheon’s stock has lost 20.4% in the past 12 months compared with the Original post
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