And record profits could come with it.
The Pentagon is working on countering the growing technological prowess of Russia and China by investing in a host of new technologies. While many of the details are classified, Raytheon is one of the big winners of the Pentagon’s largesse.
“Countering pure nation threats with advanced technologies is a rapidly developing growth area for Raytheon, especially in our classified business,” Tom Kennedy, Raytheon’s chairman and chief executive officer told investors. “Peer nations are working to close the gap with U.S. capabilities, which is driving strong demand from our U.S. customers.”
The demand from the Pentagon for new technologies to counter advancing adversary capabilities is driving record profits at the company. “Demand that resulted and a new company record for classified sales in 2017,” Kennedy said. “Looking ahead, our next generation solutions and technologies, such as the Long Range Standoff, the Long-Range Precision Fires, high energy lasers and hypersonics will continue to fuel growth in this area as he U.S. looks to maintain its operational and technical dominance.”
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Raytheon is has been heavily involved in developing hypersonic technologies but all of the company’s work on such programs is highly classified. “First of all back on hypersonic. We’ve been on the hypersonic path here for many years,” Kennedy said. “It’s in our second pillar of our four-pillar strategy. We actually say that we’re heavily investing and working in the hypersonic area. We have already gotten multiple hypersonic contracts with the Department of Defense. So one of the larger ones is a program called Hawk, which is with DARPA and it is essentially it’s a sensory hypersonic missile and we are the prime.”