ATK Awarded Four-Year Contract to Operate Lake City Army Ammunition Plant
April 7, 2009
U.S. Army Recognizes ATK’s Proven Management Capabilities with Four-Year Lake City Army Ammunition Plant Contract
First Orders Under New Contract to Total $481 Million
MINNEAPOLIS, April 2 /PRNewswire-FirstCall/ — Alliant Techsystems (NYSE: ATK), the world’s leading small-caliber ammunition manufacturing entity, has been awarded a contract from the U.S. Army Contracting Command, Rock Island Contracting Center, Rock Island, Ill., to continue operating the Lake City Army Ammunition Plant (LCAAP) for an additional four years. Under the new contract, ATK will continue to supply small-caliber ammunition through September 2013. The award assures an uninterrupted supply of ammunition to the U.S. military beyond ATK’s current 10-year contract.
The U.S. Army also awarded ATK $481 million in orders under the new contract for production of 5.56mm, 7.62mm, and .50-caliber ammunition and to continue work to modernize the Lake City facility.
ATK began operating the plant, located in Independence, Mo., in April 2000 and has increased production from 350 million to more than 1.4 billion rounds annually. The plant has the capability to produce a mix of 5.56mm, 7.62mm, .50-caliber, and 20mm cartridges, as well as ammunition links.
“ATK offers proven capabilities in facility management, efficient manufacturing, and innovative product development,” said ATK Armament Systems President Mark DeYoung. “This contract is a recognition of our expertise and our performance in these areas. We’re proud to have the opportunity to continue to focus on meeting the needs of the customer and our nation’s fighting forces.”
ATK is a premier aerospace and defense company with more than 19,000 employees in 22 states, Puerto Rico and internationally, and revenues in excess of $4.5 billion. News and information can be found on the Internet at www.atk.com.
Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those factors are: changes in governmental spending, budgetary policies and product sourcing strategies; the company’s competitive environment; the terms and timing of awards and contracts; and economic conditions. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, please refer to ATK’s most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.
Media Contact:
Amanda Covington
Phone: 801-779-4625
E-mail: amanda.covington@atk.com
Investor Contact:
Jeff Huebschen
Phone: 952-351-2929
E-mail: jeff.huebschen@atk.com
Firearm Sales Continue to Climb in March
April 5, 2009
NEWTOWN, Conn. — Firearm sales continued to surge across the country for the fifth straight month, extending a trend that began after the November elections. The increase also follows recent comments by several high-profile members of the Obama administration about re-imposing permanently and expanding the ban on modern sporting rifles.
|
|
Data from the FBI’s National Instant Criminal Background Check System (NICS) show background checks on the sale of firearms jumped 29.2 percent in March when compared to March 2008 and were up 27.1 percent for the first quarter of 2009 over the same quarter last year.
The increase follows a 23 percent rise in February, a 28 percent rise in January, a 24 percent rise in December and a 42 percent jump in November, when a record 1,529,635 background checks were performed.
FBI background checks are required under federal law for all individuals purchasing firearms from federally licensed retailers. These checks serve as a strong indicator of actual sales.
Correspondingly, ammunition manufacturers are reporting record sales across the country as demand continues to outpace supply.
“Americans concerned about their ability to purchase many types of home defense, hunting and target shooting firearms in the future are continuing to purchase these products in record numbers today,” said NSSF President Steve Sanetti. “Along with this strong sales showing, we’ve also seen increased participation in firearm safety and education programs such as NSSF First Shots.”
NICS reported 1,345,096 checks in March, up from 1,040,863 in the same month a year ago.
###
NSSF, founded in 1961, is the trade association for the firearms, ammunition and recreational shooting sports industry. It promotes the safe ownership and responsible use of products its members make and sell. For more information, visit www.nssf.org.
April 5, 2009
ATK Acquires Eagle Industries
April 2, 2009
  |
MINNEAPOLIS, Minnesota –Alliant Techsystems has acquired Eagle Industries, as it expands its position in the domestic and international tactical accessories markets serving military and law enforcement customers. While terms of the agreement were not disclosed, the company expects the acquisition to add more than $80 million to Fiscal Year 2010 revenues, and be slightly accretive to FY10 earnings per share (EPS). Eagle Industries will become part of ATK’s Armament Systems group.
Eagle Industries is a leading manufacturer of high quality, individual operational nylon gear and equipment for military, homeland security, and law enforcement agencies. The company manufactures more than 5,000 products designed to meet the highest quality standards of its customer base. The products include: tactical assault vests, load-bearing equipment, weapon transporting gear, holsters, personal gear carriers, and other high quality accessories. Eagle Industries’ products are renowned for their performance and durability by special operations forces, military, and law enforcement customers throughout the United States and internationally. The company employs approximately 2,300 people.
“Eagle Industries is a quality leader in tactical nylon accessories and will provide ATK with an exciting opportunity to expand its presence into the growing military and law enforcement accessories markets,” said Dan Murphy, Chairman and CEO. “We have successfully grown our accessory business in commercial sport hunting markets and will use that expertise, combined with the capabilities of Eagle Industries, to grow our market position in domestic and international tactical accessory markets.”
“Eagle Industries has built a strong reputation within the military and law enforcement markets, both domestic and international, by producing the highest quality tactical equipment and systems,” said Scott Carver, Vice President and General Manager, ATK Tactical Systems division. “By joining forces with ATK, we will be even better equipped to support the soldier and other customers while growing our business in ways we could not have done alone. This is a great opportunity for both companies.”
ATK’s Armament Systems group is a leading provider of enhanced solutions for national defense with capabilities in facility and supply chain management; small- and medium-caliber military ammunition manufacturing; medium-caliber gun system design and manufacturing, integrated weapon stations, advanced propellant and energetics production; and technology development in shooting sports ammunition, accessories and reloading supplies. ATK will apply its expertise in lean and efficient process improvement to expand Eagle Industries’ abilities to deliver affordable, durable, high-quality tactical accessories products that meet or exceed customer requirements.
ATK is a premier aerospace and defense company with more than 19,000 employees in 22 states, Puerto Rico and internationally, and revenues in excess of $4.5 billion. News and information can be found on the Internet at www.atk.com.
Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those factors are: assumptions related to the growth of the company’s new tactical accessories product line; the challenges of integrating any acquisition; changes in governmental spending, budgetary policies and product sourcing strategies; the company’s competitive environment; the terms and timing of awards and contracts; and economic conditions. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, please refer to ATK’s most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.
Bryce Hallowell(952) 351-3087 or bryce.hallowell@atk.com
