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http://www.forbes.com/2001/10/08/1008bombs.html
Archived: 10/09/2001 at 01:10:49
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Arms And The Weapons Maker NEW YORK - Stocks in defense contractors surged as Operation Enduring Freedom's air campaign entered its second day in Afghanistan. As yet, the Afghanistan air campaign is relatively light in comparison to the opening phases of Operation Desert Storm in 1991 or the Kosovo air war of 1998. So far only 50 Tomahawk cruise missiles have been launched, compared to 450 during the Kosovo conflict. 
The reason is the difference in the countries being targeted. Dirt-poor in terms of air defense installations and high-value targets, Afghanistan is not what you would call a target-rich environment. 50 Tomahawks--which can cost between $500,000 and $750,000 a piece--may very well do the job. If Iraq, which has a higher concentration of more modern, high-value fixed targets, is on the list of other possible targets for action as the war winds on, allied forces may be conserving them for use later. Companies that produce these weapons saw their share prices rise. Raytheon (nyse: RTN - news - people) was trading at $36.70 per share, up $1.73 or nearly 5%, by midday, while Boeing (nyse: BA - news - people) was up 84 cents, or more than 2%, by 1 P.M. to $37.10 per share. Lockheed Martin (nyse: LMT - news - people) jumped $1.41, or nearly 3%, to $49.14 per share. All three are in the business of making bombs and missiles. Here's a rundown of some of the munitions being used, and the companies behind them: Tomahawk Cruise Missile Manufacturer: Raytheon (nyse: RTN - news - people) What it does: Launched from surface ships and submarines, it uses the Global Positioning System of navigational satellites to home in and destroy large, above-ground targets like airfields and communications stations. It flies close to the ground and is hard to detect with radar. As many as 400 were fired at Iraqi forces in Desert Storm. Cost each: $500,000 to $750,000 Year 2000 Revenues: $16.89 billion Price on 10/05: $34.97 P/E Ratio: 22.53 GBU-28: The "Bunker Buster" bomb Maufacturer: Raytheon (nyse: RTN - news - people) What it does: Penetrates underground buildings. It can be programmed to explode only after it has reached a certain level inside the building. Cost each: about $50,000 Year 2000 Revenues: $16.89 billion Price on 10/05: $34.97 P/E Ratio: 22.53 Conventional Air Launched Cruise Missile (CALCM) Manufacturer: Boeing Air & Space Group, a division of Boeing (nyse: BA - news - people) Cost each: $300,000 to $400,000 What it does: CALCM are former nuclear-tipped cruise missiles that have been re-purposed with conventional warheads. Launched from the underside of B-52 bombers they are similar to Tomahawks, guiding themselves to fixed targets on the ground using GPS navigation. The U.S. fired 90 of these missiles at Iraq in 1998's Operation Desert Fox. As many as 50 more were fired at Serbian air defenses in Kosovo. Cost each: $600,000 Year 2000 Revenues (for parent company, Boeing): $51.3 billion Price on 10/05: $36.36 P/E Ratio: 9.81 Joint Direct Attack Munition (JDAM) Manufacturer: Boeing (nyse: BA - news - people), formerly made by McDonnell-Douglas What it does: A kit developed to make "dumb" bombs smarter. Modifications to the tail and an the addition of a GPS guidance system helps these bombs guide themselves to their targets, especially in adverse weather after being dropped from high altitudes. Cost each: $10,000 Year 2000 Revenues: $51.3 billion Price on 10/05: $36.36 P/E Ratio: 9.81 AGM-84 Stand-Off Land Attack Missile (SLAM) Manufacturer: Boeing (nyse: BA - news - people), formerly made by McDonnell-Douglas What it does: Launched from F-18 jets, the SLAM has TV cameras in the nose and can be guided manually once launched against targets on the ground or surface ships. A new version called the SLAM-ER (extended range) doubled its range to 150-plus miles. Cost each: $300,000 to 400,000 Year 2000 Revenues: $51.3 billion Price on 10/05: $36.36 P/E Ratio: 9.81 Source: John Pike, director of Globalsecurity.org, and Nick Cook, aerospace consultant with Janes Defence Weekly
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