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America's arsenal no scudbuster t (Fortune magazine)Down at the 99 pub and restaurant, the guys from raytheon no longer talk to strangers.Workers in baseball caps and down vests are scattered along the bar in groups of two or three, murmuring among themselves as they watch war news on tv.When the screen shows a patriot missile streaking across the saudi sky to take down yet another scud, they smile at each other and a ripple of excitement passes through the room.But sidle up to one of the groups and all you'll get is a silent stare.Super-Tight security is one reason.You might be what you say you are, a reporter asking foolish questions.Then again, you might also be some wacko with a sinister interest in the huge red-Brick plant a half-Mile up route 133 in andover, massachusetts.That's where raytheon assembles patriots night and day.The folks at raytheon are not the sort to make a show out of doing their jobs.In prosperous andover and nearby blue-Collar towns such as lowell and lawrence, the american flags on display are mostly of a discreet size, and there are no scudbuster t-Shirts in sight.A yankee reserve also prevails at raytheon headquarters in lexington, 25 miles to the south.Company officials are clearly uncomfortable in the media spotlight.Says robert a.Skelly, vice president for public and financial relations:''This is a quiet, conservative company.We've been around for a long time, turning out a wide variety of quality products.'' Raytheon derives about 55% of its $9 billion in annual revenues from the defense business.The patriot is by far its biggest product, accounting for nearly $1.5 billion in 1990 sales.Its notable success in the gulf could have big-Time effects on the company's prospects, says wolfgang h.Demisch, defense analyst at ubs securities.Raytheon stock, hammered along with that of other defense contractors during the past year, spurted over 10% in the last two weeks of january to more than $75 a share.A patriot battery typically consists of a control trailer, an antenna-Mast vehicle, a generator, a radar, and up to eight of those now-Familiar launching stations that look like boxcars tilted at 45 degrees.Three soldiers sit in the sealed, windowless trailer scanning radar screens.When they spot an incoming missile, they launch a patriot that is guided by signals from the radar.Patriot embodies a new concept called track via missile guidance.As it closes in, the missile begins tracking the target itself.A computer on the ground uses the information to direct the missile toward a kill.The cost of the battery varies depending on the size of the order and the configuration;Last december, the saudis paid $513 million for eight batteries and 300 missiles.Raytheon is currently in the fifth year of a five-Year army contract, and thousands of patriots are stockpiled.Nevertheless, the army has asked the company to speed up production, and the andover plant is now operating round the clock.Several european countries already own patriots, and a slew of new customers is likely to emerge.Says lawrence korb, a senior fellow at the brookings institution and a former raytheon executive:''I suspect there will be other countries around the world with concern about their neighbors having missile technology.They're going to want these things.'' More important for Raytheon's long-Term prosperity, the patriot's success is an advertisement for its mastery in the arcane field of antimissile r says analyst michael laurer of kidder peabody:''Obviously, this action validates Raytheon's approach.The technology certainly works--And as intended.'' Conceived in the late 1960s, the Patriot soon came under attack;Defense secretary james schlesinger nearly canceled it in the 1970s.Said senator george mcgovern, in condemning a 1972 defense procurement bill that included funding for patriot research:''I propose that we avoid luring still more workers out on a precarious military limb from which so many have already fallen.Let us instead find these citizens jobs that are worthy in the production of things the country desperately needs.'' Intense lobbying by House Speaker Tip O'Neill saved the program, but its woes were not over.Malfunctions cropped up, such as balky radar, and the controls were hard for soldiers to understand.By the mid-1980s Raytheon had worked out most of the bugs.About that same time, a crucial new application was added.Originally intended primarily as an antiaircraft weapon, the patriot was modified to take on the threat posed by tactical missiles like the scud.The patriot missile itself, which measures some 17 feet and weighs about a ton, was modified to fly more accurately than before, the warhead's size was increased, and the software for the guidance system was made more sophisticated.Raytheon officials bristle when commentators express surprise at the patriot's performance.Skelly points to the system's testing record at the white sands missile range:15 clean hits in 15 tries.''We had a lot of confidence the system would perform, '' he says.''And now there is a certain amount of gratification, of satisfaction.'' The workers turning out Patriots no doubt feel the same way, though you are hard pressed to find much sign of it around Andover.One small sign, perhaps.A convenience store near the plant is selling bumper stickers adorned with the raytheon logo, a drawing of a missile, and the slogan the real new england patriots!The allusion is to the region's hapless national football league team, which ended this past season with a 1-15 record.Happily for local morale, as well as for the allied war effort, raytheon's patriots have fared far better. Market indexes are shown in real time, except for the djia, which is delayed by two minutes.All times are et.Disclaimer Libor warning:Neither bba enterprises limited, nor the bba libor contributor banks, nor reuters, can be held liable for any irregularity or inaccuracy of bba libor.Disclaimer. Morningstar:2012 Morningstar, Inc.All rights reserved.Disclaimer Cheap True Religion UK The dow jones indexessm are proprietary to and distributed by dow jones company, True religion bootcut jeans outlet cheap inc.And have been licensed for use.All content of the dow jones indexessm 2012 is proprietary to dow jones company, inc. Market indexes are shown in real time, except for the djia, which is delayed by two minutes.All times are et.Disclaimer Libor warning:Neither bba enterprises limited, nor the bba libor contributor banks, nor reuters, can be held liable for any irregularity or inaccuracy of bba libor.Disclaimer. Morningstar:2012 Morningstar, Inc.All rights reserved.Disclaimer The dow jones indexessm are proprietary to and distributed by dow jones company, inc.And have been licensed for use.All content of the dow jones indexessm 2012 is proprietary to dow jones company, inc.

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