Raytheon making a killing on Ukraine weapons
US-based Raytheon Technologies, one of the largest aerospace and defense manufacturers in the world by revenue and market capitalization, posted a near 5% year-on-year surge in third-quarter revenue on Tuesday.
Company sales grew to $16.95 billion during the period – based largely on its missile and defense contracts – thanks in part to the ongoing conflict in Ukraine, as well as rising air travel demand, which buoyed parts and services sales.
The Raytheon Missile and Defense unit reported third quarter adjusted sales of $3.678 billion. They were down 6% versus the prior year due to supply chain constraints and declines on some military programs, but the decrease was partially offset by higher volume on strategic missile defense orders.
Among the most notable defense bookings during the quarter were a $1 billion contract to develop the Hypersonic Attack Cruise Missile (HACM) for the US Air Force and a $972 million contract for the Advanced Medium-Range Air-to-Air Missile (AMRAAM) for the US Air Force, the US Navy, and international customers.
Raytheon also recently received a $182 million contract from the US Army for supplying its National Advanced Surface-to-Air Missile System (NASAM) to Ukraine. It is part of the $2.98 billion in US defense aid promised to Kiev in order to stave off the advance of Russian troops. According to US defense officials, eight NASAMs have already been dispatched to Ukraine. This month, reports have emerged that Washington plans to send two more NASAMs to Kiev in the near future.
The US has also been supplying the Ukrainian army with Raytheon and Lockheed Martin-developed Javelin anti-tank missiles. Last month, the Pentagon announced a new $311 million contract for replenishing the stocks of Javelins that were reportedly depleted by deliveries to Kiev. Ukraine has been demanding more US missiles for its air defense following Russian missile attacks on several Ukrainian cities, including Kiev.
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