Raytheon Inks $1.6 Billion Cruise-Missile Contract

Raytheon [RTN] won a $1.6 billion, multiyear contract for a full-rate production (FRP) run of Tactical Tomahawk Block IV cruise missiles for the U.S. Navy and for Britain’s Royal Navy. The Tactical Tomahawk is equipped with a two-way satellite data link that allows for flex targeting. It can also transmit battle-damage imagery and missile status via the data link. Tactical Tomahawk firing platforms also will have the ability to plan GPS-only missions, and the missile has a GPS anti-jam receiver.

The contract combines American purchases with British buys conducted as part of the Foreign Military Sales (FMS) program. The FRP run comprises as many as 2,200 Tactical Tomahawks — 2,135 for the Navy and 65 for Britain between FY 04 and FY 08. Production work will take place at Raytheon’s facility in Tucson, and it should be completed by 2011.