Raytheon to supply missiles to Saudi Arabia

WALTHAM, Mass.

Defense contractor Raytheon Co. said Monday it has received a $55 million contract to deliver wireless-guided missiles to the U.S. government as part of a sale to Saudi Arabia's National Guard.

The weapons are known as TOW missiles, which stands for tube-launched, optically-tracked, wireless guided 2A radio frequency missiles. The company said they enhance operations in urban areas because they are very precise.

TOW missiles are the most-used precision heavy assault weapons. They are used by 40 countries on more than 10,000 airborne and ground platforms.

Raytheon shares rose 35 cents to $48.08 in afternoon trading.