Raytheon to Continue TOW Missile Production Under $130M Army Contract Modification; Kim Ernzen Comments

Raytheon (NYSE: RTN) will continue to manufacture the tube-launched, optically-tracked, wireless-guided missiles through a $129.9 million contract modification from the U.S. Army.

The company said Tuesday the award modifies a previously awarded $320 million contract for TOW weapons production.

Kim Ernzen, vice president of Raytheon’s land warfare systems business, said there is global demand for the system that works to help U.S. and allied ground troops maintain a battlefield advantage.

The weapon uses multimission TOW 2A, TOW 2B and TOW Bunker Buster missiles designed to hit armored and wheeled targets.

Raytheon has provided more than 690,000 TOW units to customers to date and the company noted it expects the U.S. military to use the system through 2050.

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