A handful of large defense contractors could see a boost if the
U.S. carries out a military attack against Syria. That’s particularly true for
Raytheon, manufacturer of the Tomahawk cruise missile, the weapon most feel would be used in a Syrian strike.
Even the possibility of a strike was enough to send
Raytheon’s stock price soaring to a 52-week high of $77.93 per share this week,
according to a report in Politico.
Raytheon has facilities in Huntsville, including a
state-of-the-art missile integration and testing facility at Redstone Arsenal.
That facility produces Standard Missile-3s and SM-6s but it is another Raytheon
missile – the Tomahawk – that will likely come into play should the U.S. carry
out a Syrian strike.
Prized for its ability to penetrate complex anti-missile
defense systems, the Tomahawk is designed to precisely hit targets with minimal
collateral damage. The Tomahawk’s newest version, the Block IV, can circle for
hours, shift course instantly and send a pictures back to controllers halfway
around the world.
According to the Politico report, the Pentagon typically buys about 196
Tomahawk missiles a year, just enough to maintain the supply chain. However,
hundreds of the missiles were fired by the Navy during 2011′s civil war in
Libya, forcing production to be accelerated.
Raytheon has delivered 252 missiles this fiscal year and 361
last fiscal year at a cost of about $1 million each. The Politico report says
the White House is asking for about $325 million for Tomahawks in the 2014
For the Politico report go here.
For more on the Syria situation:
International Business Times
Boston Business Journal
For a look at other weapons systems that could come into
play in Syria, go here.