Raytheon, which is the largest manufacturer of guided missiles in the world, benefited significantly after February 2022, and supplies of its products to Ukraine constituted a major driver of the company’s business growth over the past two and a half years.
Requests from Western countries
The company’s products include guided missiles of various models, such as the “NASMAS”, “Javelin” and “Stinger” missiles. It also works actively to supply “Patriot” air defense systems and receives new orders for their production based on requests from Western countries that have in turn transferred their own systems or are in the process of Transfer it.
An analysis of the company’s business confirmed that the conflict in Ukraine has become an important profitable factor for the company after several quarterly declines until the year 2022, when it began to show a steady improvement in its financial performance.
In numbers, in the second quarter of 2022, 18.6% of new orders (worth $662 million) were from contracts to replenish stocks of “Stinger” missiles for the US Army, after more than 1,000 missiles of this type were sent to the Kiev system.
Nasmas supplies to Ukraine
By the fourth quarter of 2022, new orders for missile systems allowed the company to increase its sales by 6% compared to the same period of the previous year. The $698 million main contract for the supply of NASAMS to Ukraine also represents about 17% of the volume of new orders.
Then in 2023, the demand for weapons continued to grow. In June, Raytheon signed a $1.15 billion contract to supply AIM-120 D-3 missiles and C-8 AMRAAM missiles. This contract includes supplies to 18 countries, including Ukraine. The demand represented about 28.8% of new sales in the second quarter of 2023.
Germany renews “Patriot”
In the fourth quarter of 2023, production of GEM-T missiles for the Patriot systems generated $2.8 billion for Raytheon, representing 40% of revenue from all new orders totaling $6.9 billion during that period.
After Germany transferred its Patriot to Ukraine, Berlin was forced to request a new system from Raytheon.
In March 2023, Germany signed a $1.2 billion contract to replace Patriot, representing 18% of new order revenue of $6.7 billion for the first quarter. In July, the country signed a similar contract with the same value.
Ukraine emptied the Pentagon’s arsenal
In addition, in August 2023, a joint venture between Raytheon and Lockheed Martin was awarded a $1.3 billion contract to produce Gavin missiles for the US Army with the aim of replenishing the Pentagon’s arsenal after sending thousands of missiles to Ukraine. It is planned that by 2026, the company will produce up to 3,960 missiles annually.
Supplies to Israel
Not to mention benefiting from the conflict in Ukraine, US arms contractors like Raytheon can expect to benefit even more from continued US support for Israel as the situation in the Middle East deteriorates.
The Israeli Ministry of Defense reported that by August it had completed 500 military supply lines from the United States, transporting a total of 50,000 tons of military equipment.
The shipments included armored vehicles, ammunition, personal protective equipment and medical equipment, which the Defense Ministry described as “vital for maintaining the operational readiness of the IDF in the context of the ongoing war.”
Thus, the increasing demand for Raytheon products resulting from global conflicts strengthens the company’s position as one of the major players in the global arms market.
Russia: NATO countries involved
It is also worth noting that Russia has repeatedly confirmed that arms supplies to Ukraine cause further escalation of the conflict and the involvement of NATO countries.
Russian Foreign Minister Sergei Lavrov has confirmed that any arms shipments to Ukraine will become a legitimate target for Russian forces, noting that the United States and NATO provide weapons and training to Ukrainian military personnel.
Source: Novosti
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