$RTN,,,Two large contracts,,,
Raytheon and Saudi Arabia Military Industries announce strategic partnership
New Raytheon Arabia business unit to be established
NEWS PROVIDED BY
Raytheon Company
07:36 ET
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RIYADH, Saudi Arabia, May 20, 2017 /PRNewswire/ -- In a ceremony witnessed by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and U.S. President Donald J. Trump, Raytheon Company (NYSE: RTN) and the Saudi Arabia Military Industries Company today signed a Memorandum of Understanding to cooperate on defense-related projects and technology development.
The agreement will enable continued global growth for Raytheon in key market areas such as Air Defense Systems, Smart Munitions, C4I Systems and Cyber Security of Defense Systems and Platforms. This partnership will also contribute directly to the Kingdom of Saudi Arabia's localized defense ecosystem with regional expert capabilities, and will provide a long-term foundation for Saudi Arabia's economic development.
"This strategic partnership is the next step in our over 50-year relationship in the Kingdom of Saudi Arabia and a strong indicator of our continued global growth," said Thomas A. Kennedy, Raytheon Chairman and CEO. "By working together, we can help build world-class defense and cyber capabilities in the Kingdom of Saudi Arabia."
As part of this new agreement, Raytheon today announced plans to establish Raytheon Arabia, a Saudi legal entity wholly-owned by Raytheon that will focus on implementing programs to create indigenous defense, aerospace and security capabilities in the Kingdom. The new company will be based in Riyadh and is expected to include in-country program management, supply and sourcing capabilities, improved customer access and centralized accountability. These programs will positively impact Saudi and U.S. economies including job creation.
About Raytheon
Raytheon Company, with 2016 sales of $24 billion and 63,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. With a history of innovation spanning 95 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I™ products and services, sensing, effects, and mission support for customers in more than 80 countries. Raytheon is headquartered in Waltham, Massachusetts. Follow us on Twitter.
Media Contact
Dave Desilets
1-781-522-5855
Raytheon Company (RTN - Free Report) has won a contract from the U.S. Air Force (USAF) to equip the Automatic Dependent Surveillance – Broadcast (ADS-
in T-38A/B and A-10 aircraft platforms. The ceiling value of the contract is $49 million and is awarded by the Air Force Life Cycle Management Center, Hill Air Force Base, UT.
Details of the Contract
Per the contract, Raytheon will provide the equipment to help USAF comply with the Federal Aviation Administration (FAA) Automatic Dependent Surveillance - Broadcast mandate.
Work is scheduled to be completed by May 16, 2023. Work will be carried out in Baltimore, MD; Largo, FL; and Indianapolis, IN. The contract will use fiscal 2017 research, development, test, and evaluation funds.
A Brief Note on ADS-B
ADS-B is a surveillance technology that helps an aircraft to track its position using satellite navigation and occasionally broadcast it. The information may be used by air traffic control ground stations as a replacement for secondary radar. Other aircraft can also use this information to provide situational awareness and allow self separation.
This is an automatic technology that doesn’t require any pilot or external input but depends on data from the aircraft's navigation system. ADS-B consists of two different services, "ADS-B Out" and "ADS-B In" that could replace radar as the primary surveillance method for controlling aircraft worldwide. In the U.S., ADS-B is an integral component of the Next Generation Air Transportation System (NextGen) national airspace strategy for upgrading and enhancing aviation infrastructure and operations.
The ADS-B market is projected to grow to $1,316.9 million by 2022 from $427.8 million in 2016, at a CAGR of 20.61%, during the forecast period. The major factor driving the growth of the ADS-B market will be the implementation of ADS-B in aircraft. Moreover, factors like modernization of air traffic management infrastructure and development of new airports globally are expected to propel its demand.
FAA directive needs aircraft operating in controlled U.S. airspace to be equipped with the ADS-B system by Jan. 1, 2020, as part of the agency’s NextGen initiative. Currently, this surveillance technology has been made compulsory in certain segments of Australian airspace. The equipment will be mandatory for some aircraft in Europe from this year. We note that Canada is already using ADS-B for quite limited air traffic control at present.
Why Raytheon?
Raytheon is one of the best-positioned companies among large-cap defense players due to its non-platform-centric focus. The company has been heavily investing in technological upgrades. Notably, its next-generation solutions will enable the company to support the U.S. Navy and international customers with advanced capabilities to counter emerging threats, going forward.
The company has been enjoying a steady stream of contracts from government establishments. Evidently, Raytheon won a modification contract worth $199.8 million from the U.S. Navy to procure 317 of the 17th Lot of AIM-9X Block II missiles – 107 for the Navy and 210 for the Air Force in April. Again, it won a contract from the U.S. Navy to provide engineering and technical services for Standard Missile, which will be used by the Navy, other government agencies and foreign military sales from fiscal 2017 through 2021.
Price Movement
Raytheon’s stock gained about 21% in the last twelve months, outperforming the Zacks categorized Aerospace-Defense Equipment industry’s gain of 15.9%. This could be because rising demand from MENA or the Middle East and North Africa region, and growth in FMS contracts are driving the stock. The company also poses strong competition to its peers including Ducommun Incorporated (DCO - Free Report) , Curtiss-Wright Corporation (CW - Free Report) and Aerojet Rocketdyne Holdings, Inc. (AJRD - Free Report) .
Raytheon and Saudi Arabia Military Industries announce strategic partnership
New Raytheon Arabia business unit to be established
NEWS PROVIDED BY
Raytheon Company
07:36 ET
SHARE THIS ARTICLE
RIYADH, Saudi Arabia, May 20, 2017 /PRNewswire/ -- In a ceremony witnessed by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and U.S. President Donald J. Trump, Raytheon Company (NYSE: RTN) and the Saudi Arabia Military Industries Company today signed a Memorandum of Understanding to cooperate on defense-related projects and technology development.
The agreement will enable continued global growth for Raytheon in key market areas such as Air Defense Systems, Smart Munitions, C4I Systems and Cyber Security of Defense Systems and Platforms. This partnership will also contribute directly to the Kingdom of Saudi Arabia's localized defense ecosystem with regional expert capabilities, and will provide a long-term foundation for Saudi Arabia's economic development.
"This strategic partnership is the next step in our over 50-year relationship in the Kingdom of Saudi Arabia and a strong indicator of our continued global growth," said Thomas A. Kennedy, Raytheon Chairman and CEO. "By working together, we can help build world-class defense and cyber capabilities in the Kingdom of Saudi Arabia."
As part of this new agreement, Raytheon today announced plans to establish Raytheon Arabia, a Saudi legal entity wholly-owned by Raytheon that will focus on implementing programs to create indigenous defense, aerospace and security capabilities in the Kingdom. The new company will be based in Riyadh and is expected to include in-country program management, supply and sourcing capabilities, improved customer access and centralized accountability. These programs will positively impact Saudi and U.S. economies including job creation.
About Raytheon
Raytheon Company, with 2016 sales of $24 billion and 63,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. With a history of innovation spanning 95 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I™ products and services, sensing, effects, and mission support for customers in more than 80 countries. Raytheon is headquartered in Waltham, Massachusetts. Follow us on Twitter.
Media Contact
Dave Desilets
1-781-522-5855
Raytheon Company (RTN - Free Report) has won a contract from the U.S. Air Force (USAF) to equip the Automatic Dependent Surveillance – Broadcast (ADS-
in T-38A/B and A-10 aircraft platforms. The ceiling value of the contract is $49 million and is awarded by the Air Force Life Cycle Management Center, Hill Air Force Base, UT. Details of the Contract
Per the contract, Raytheon will provide the equipment to help USAF comply with the Federal Aviation Administration (FAA) Automatic Dependent Surveillance - Broadcast mandate.
Work is scheduled to be completed by May 16, 2023. Work will be carried out in Baltimore, MD; Largo, FL; and Indianapolis, IN. The contract will use fiscal 2017 research, development, test, and evaluation funds.
A Brief Note on ADS-B
ADS-B is a surveillance technology that helps an aircraft to track its position using satellite navigation and occasionally broadcast it. The information may be used by air traffic control ground stations as a replacement for secondary radar. Other aircraft can also use this information to provide situational awareness and allow self separation.
This is an automatic technology that doesn’t require any pilot or external input but depends on data from the aircraft's navigation system. ADS-B consists of two different services, "ADS-B Out" and "ADS-B In" that could replace radar as the primary surveillance method for controlling aircraft worldwide. In the U.S., ADS-B is an integral component of the Next Generation Air Transportation System (NextGen) national airspace strategy for upgrading and enhancing aviation infrastructure and operations.
The ADS-B market is projected to grow to $1,316.9 million by 2022 from $427.8 million in 2016, at a CAGR of 20.61%, during the forecast period. The major factor driving the growth of the ADS-B market will be the implementation of ADS-B in aircraft. Moreover, factors like modernization of air traffic management infrastructure and development of new airports globally are expected to propel its demand.
FAA directive needs aircraft operating in controlled U.S. airspace to be equipped with the ADS-B system by Jan. 1, 2020, as part of the agency’s NextGen initiative. Currently, this surveillance technology has been made compulsory in certain segments of Australian airspace. The equipment will be mandatory for some aircraft in Europe from this year. We note that Canada is already using ADS-B for quite limited air traffic control at present.
Why Raytheon?
Raytheon is one of the best-positioned companies among large-cap defense players due to its non-platform-centric focus. The company has been heavily investing in technological upgrades. Notably, its next-generation solutions will enable the company to support the U.S. Navy and international customers with advanced capabilities to counter emerging threats, going forward.
The company has been enjoying a steady stream of contracts from government establishments. Evidently, Raytheon won a modification contract worth $199.8 million from the U.S. Navy to procure 317 of the 17th Lot of AIM-9X Block II missiles – 107 for the Navy and 210 for the Air Force in April. Again, it won a contract from the U.S. Navy to provide engineering and technical services for Standard Missile, which will be used by the Navy, other government agencies and foreign military sales from fiscal 2017 through 2021.
Price Movement
Raytheon’s stock gained about 21% in the last twelve months, outperforming the Zacks categorized Aerospace-Defense Equipment industry’s gain of 15.9%. This could be because rising demand from MENA or the Middle East and North Africa region, and growth in FMS contracts are driving the stock. The company also poses strong competition to its peers including Ducommun Incorporated (DCO - Free Report) , Curtiss-Wright Corporation (CW - Free Report) and Aerojet Rocketdyne Holdings, Inc. (AJRD - Free Report) .
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'Everything works out in the end,,,If it hasn't worked out,,it's not the end'
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