Raytheon Awarded $42 Million for Lightweight Torpedoes

Raytheon Company (NYSE: RTN) has been awarded a $42.6 million U.S. Navy contract to provide MK54 lightweight torpedo hardware. Under the contract, Raytheon Integrated Defense Systems (IDS) will deliver a total of 100 MK54 kits for U.S. fleet inventory and in support of foreign military sales. This award includes options for additional quantities for both domestic and international assets. Total contract value, if all options are exercised, could exceed $550 million over five years. "Together with the Navy customer, we will leverage our collective expertise to continue to advance the reliability and effectiveness of the MK54 torpedo," said Kevin Peppe, IDS' vice president of Seapower Capability Systems. "Our dedication to quality and execution stems from our commitment to our customer - to deliver the most affordable and effective undersea weapons to naval fleets around the world." Raytheon is the U.S. Navy's sole production supplier for lightweight torpedoes, in production since 1999. With an established infrastructure and experienced workforce, the company works directly with the Navy to meet the torpedo requirements of U.S. and allied fleets. Together, the Navy and Raytheon have formed a total enterprise partnership, Team Torpedo, dedicated to the design and production of the world's most capable torpedoes. Raytheon's Team Torpedo combines manufacturing, design engineering and support services expertise with the systems engineering and testing capabilities of Naval Undersea Warfare Center (NUWC) operations in Newport, R.I., and Keyport, Wash. Work on the contracts will be performed at Raytheon IDS' Torpedo and Readiness Center, co-located with the U.S. Navy at NUWC Division Keyport, Wash., and at the Seapower Capability Center, Portsmouth, R.I.

Source: Raytheon Corporation (NYSE: RTN)
Date: Oct 18, 2011