The U.S. Navy awarded Raytheon Company (NYSE: RTN) a $108 million contract for continued production of Standard Missile-2 all-up rounds, a majority of which will be sold to U.S. allies through foreign military sales. This award brings the total fiscal year 2011 contract value to more than $200 million.
"The U.S. Navy has committed to supporting SM-2 past 2035, and this contract award reflects our international partners' desire to maintain this key defensive asset in their inventories," said Michael Campisi, Raytheon Missile Systems' senior director for SM-2 and SM-6 production. "The SM-2 production line is open for all our allies' requirements, and there will be full mission support available throughout the lifecycle of this critical asset."
SM-2 is deployed by the U.S. and eight allied navies. The missile provides high- and low-altitude intercept capabilities and performance against advanced anti-ship missile threats.
"SM-2 has been the primary surface-to-air fleet-air defense weapon of choice for decades," said Campisi. "It's an extremely effective, relevant weapon that will continue to protect navies around the globe for many years to come."
Source: Raytheon Company