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SM-2 has a flight speed of Mach 3.5 making it very hard to intercept, and a decent sized 165lb warhead. A Kidd with the NTU upgrade can illuminate as many as six SM-2s at once(i believe), so using SM-2 the Kidds have a tremendous saturation anti-ship capability as long as the target is visible on the electronic horizon.
(most) Modern warships are very lightly armored, so the SM-2 is a very effective anti-ship missile against most ships cruiser sized or smaller.
Remember, one only needs to mission kill a ship to knock it out of the fight, and a salvo of SM-2s is very good for doing just that.
Once the ship is disabled and defenseless any of a variety of munitions can be used to sink it at a later time.
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