Raytheon has problems with Navy missile programs

WASHINGTON (Bloomberg) — Raytheon Co. has new problems with two of its top Navy missile programs, including the weapon fired last month against Iraqi air defenses. The Navy is withholding $36 million from the No. 3 U.S. defense contractor until it fixes the Joint Standoff Weapon, or JSOW. This self-guided missile is the weapon of choice for U.S. Navy planes in the Persian Gulf. Meantime, Raytheon’s problems with the next generation of Tomahawk cruise missile will extend development six months and cost $48 million, of which the company absorbs at least $34 million, according to Pentagon documents.