Raytheon - Lockheed Martin's Javelin JV Gets $176 Mln Contract - Update

(RTTNews) - Defense contractor Raytheon Co. (RTN) announced Monday that Javelin Joint Venture, formed by Raytheon and peer Lockheed Martin Corp. (LMT), received a $176 million contract for the production and delivery of 842 Block I Javelin missile rounds and 120 command launch units or CLUs.

The company said the contract was awarded to the joint venture in September.

Javelin is a compact, lightweight missile designed for one-soldier operations in all environments. Javelin enhances direct-fire capability against armored vehicles, buildings and field fortifications. With the Javelin missile system, a single infantryman can engage and defeat targets in close combat and at ranges up to two-and-a-half kilometers. It is currently fielded with the U.S. Army and U.S. Marine Corps, and has also been approved for foreign military sales to 13 nations.

Under the deal, the missiles will be provided through the U.S. government to the U.S. Army, U.S. Marine Corps and three international customers, such as Oman, Jordan and Indonesia.

Funded with Special Defense Acquisition Funds, the CLUs will be delivered to the U.S. Army beginning October 2014, Raytheon said.

Jeff Miller, Raytheon Javelin program director and Javelin Joint Venture president said, "The Javelin Joint Venture is providing U.S. and allied warfighters with an affordable, versatile and lethal one-man-portable, anti-tank, guided missile and surveillance weapon. This contract is important to the Javelin program because the CLU retrofit business keeps our production line warm through mid-2015."

Barry James, Lockheed Martin Javelin program director and Javelin Joint Venture vice president, said, "This contract allows us to provide to our customers one of the most reliable and user-friendly systems in the world. Javelin has proven and continues to prove itself time and time again in combat."

Raytheon shares closed Friday's trading at $85.28, down $0.40 or 0.47 percent. Lockheed Martin shares closed at $137.45, down $0.84 or 0.61 percent.