said it received a three-year $881.4 million contract from the Navy to continue development of the sea-based missile Standard Missile-3 (SM-3).
Shares of Raytheon were gaining 34 cents to $31.34 Monday afternoon. SM-3 features a third-stage rocket motor, GPS guidance and a kinetic warhead to intercept and destroy short- and medium-range ballistic missiles in space, and it is a component of the Missile Defense Agency's Aegis Ballistic Missile Defense program.
Raytheon heads the SM-3 team, which is supported by
, who provide major subsystems.
The company said that last December, President Bush announced the administration's intention to deploy missile defense capabilities in 2004-05. The proposal calls for up to 20 sea-based interceptors employed on existing Aegis ships.
Raytheon, based in Lexington, Mass., had sales of $16.8 billion in 2002.