Alliant Techsystems Inc., most commonly known by its ticker symbol, NYSE: ATK, is one of the largest aerospace and defense companies in the United States with more than 18,000 employees in 22 states, Puerto Rico and internationally, and 2010 revenues in excess of an estimated US$4.8 billion.[3] The company headquarters is located in Minneapolis, Minnesota.
Alliant Techsystems Inc. (ATK), incorporated in 1990, is an aerospace and defense company with operations in 24 states, Puerto Rico, and internationally. ATK is a producer of military small-caliber ammunition for use in soldier-carried weapons, such as automatic and semi-automatic rifles, and machine guns. The Company is also the producer of medium-caliber ammunition used by crew-served weapons on armored vehicles and aircraft. ATK is one of the producers of military large-caliber ammunition used by tanks. In addition, the Company is the producer of ammunition for the sport enthusiast and law enforcement markets. ATK is the a manufacturer of solid rocket motors. The Company is also the contractor of the first stage of NASA's next-generation family of launch vehicles, the Ares I and Ares V. The Company produces other large solid rocket motors used to launch, or help launch, a variety of strategic missiles, and launch vehicles for satellite insertions or deep-space scientific exploration, including the Trident II (D5) and Minuteman III, which provide strategic deterrence capability for the United States and its allies; missile intercept solid rocket motors for Ground-based missile defense and the SM-3 program, and Graphite Epoxy Motors for launch vehicles, such as the Delta II. On April 12, 2010, ATK announced that it had acquired Blackhawk Industries Products Group Unlimited, LLC.
The Company is a manufacturer of medium-caliber chain guns for use on a variety of land, sea and airborne platforms. It is also a provider of satellite and spacecraft components and subsystems and has established itself as a provider of tactical accessories for military, security, law enforcement and sport enthusiast markets. ATK is a provider of energetics and propellants for warheads and bomb-fill. It provides advanced missile warning sensors for a variety of aircraft; fuses for a variety of weapon systems and advanced barrier systems used by the United States Armed forces and its allies. Additional business lanes include special mission aircraft for intelligence, surveillance and reconnaissance missions, and advanced flares and decoys used for night operations and search and rescue missions. The Company also produces smaller solid rocket motors for tactical missiles such as the Hellfire and Maverick. The Company has three segments, which include Armament Systems, Mission Systems and Space Systems.
Armament Systems
Armament Systems develops and produces military ammunition and gun systems, commercial products, tactical systems and equipment, and propellant and energetic materials. It also operates the United States Army ammunition plants in Independence, Missouri and Radford, Virginia. The Company produces ammunition for the sport hunting/sport enthusiast market. Its additional brands include Fusion, and Estate Cartridge. The Company also produces ammunition for the law enforcement market. In addition to ammunition, the Company includes ATK's accessories product lines, such as reloading equipment, gun care products, targets and traps, rifle scopes and mounts, and binoculars. These products are marketed under a number of well-know brand names, including RCBS, Outers, Shooter's Ridge, Weaver Optics and Nitrex.
The Company operates the Radford Army Ammunition Plant in Radford, Virginia, where it provides TNT and develops and produces energetics and a variety of warheads and bomb fill, including nitrocellulose. It also manufactures propellants for tank ammunition and tactical rocket motors. Its products include the Guided Advanced Tactical Rocket System (GATR) and flexible energetic products. The group produces medium-caliber chain guns and manages medium-caliber ammunition design and orders. These gun systems are used on a variety of land vehicles, helicopters and naval vessels, including the Bradley Fighting Vehicle, the Expeditionary Fighting Vehicle, Light Armored Vehicle and Apache helicopter. Its products include the Light Weight 25mm gun system and ammunition suite, the Palletized Autonomous Weapon System, and the M230LF gun system. The group provides tactical accessories to the armed forces and allies, special operations forces, law enforcement (both domestic and international) and sport enthusiasts.
The Company competes with General Dynamics Corporation, BAE Systems, Winchester Ammunition of Olin Corporation; Remington Arms; and various smaller manufacturers and importers, including Hornady, Black Hills Ammunition, Wolf, Rio Ammunition, Fiocchi Ammunition, and Selliers & Belloitt.
Mission Systems
Mission Systems operates across in large caliber direct fires, force protection, precision guided munitions, missiles, propulsion, missile defense, fuzes and warheads, composites, special mission aircraft, electronic warfare, military aircraft structures, commercial aircraft structures and launch structures. During the fiscal year ended March 31, 2010 (fiscal 2010), the Mission Systems consisted of more than 1,000 different programs for United States and allied armed forces, National Aeronautics and Space Administration (NASA) and international governments.
The Company is a provider of composite aircraft components for military and commercial aircraft manufacturers. It provides composite wing skins and nacelles for the F-35 II Lightning, a fifth-generation fighter aircraft for the United States military and its allies. The Company is also under contract to produce composite stringers and frames for the Airbus A350 passenger jetliner. Its additional composite programs include containment cases for General Electric's GEnx engine which is used to power the Boeing 747-8 Cargo aircraft, and the Rolls Royce Trent XWB, which is used to power the A350 aircraft.
Mission Systems segment is the production home to the Company's AAR-47 missile warning system, which is used by a variety of fixed and rotor-wing aircraft to defeat shoulder-fired missile threats. The Company holds one of two contracts to develop a next-generation missile warning system, the Joint Allied Threat Awareness System (JATAS). The Company also provides special-mission aircraft to the United States Government and international customers. These aircraft are equipped for advanced intelligence, surveillance and reconnaissance missions, as well as search and rescue missions.
The Company competes with GenCorp Inc., General Dynamics Corporation, Lockheed Martin Corporation, Raytheon Company, Textron Inc., Pratt & Whitney Space and Missile Propulsion of United Technologies Corporation, The Boeing Company, L-3 Communications Corporation, Northrop Grumman Corporation, GKN plc, AAR Corp., Vought Aircraft Industries, Inc., Goodrich Corporation, Applied Aerospace Structures Corporation, Science Applications International Corporation, Ball Corporation and Georgia University of Technology.
Space Systems
Space Systems produces rocket motor systems for human and cargo launch vehicles, conventional and strategic missiles, missile defense interceptors, small and micro-satellites, satellite components, structures and subsystems, lightweight space deployables and solar arrays, and provides engineering and technical services. Its other products include ordnance, such as decoy and illuminating flares.
The Company is the production home for the Company's four-segment reusable solid rocket motors for the Space Shuttle program and five-segment solid rocket motors under development for NASA's next-generation launch vehicles, the Ares I and Ares V. In addition, the Space Systems group produces a launch abort system (LAS) motor for the Orion crew capsule that was designed to safely pull the crew away from the launch vehicle in the event of an emergency during the launch. The Space Shuttle, Ares I/Ares V, and LAS programs accounted for approximately 14% of ATK's total revenue in fiscal 2010.
The Company also produces large solid rocket motors for the Trident II (D5) Fleet Ballistic Missile and the Minuteman III Intercontinental Ballistic Missile. Additional solid rocket motors being produced by the group include GEM 40 and GEM 60 motors for the Delta II, Orionmotors for the Orbital Science Corporation's Pegasus, Taurus, and Minotaur launch vehicles, and CASTOR motors for Japan's H-11A and Orbital Sciences Taurus rocket.
The Company supplies Orion motors for all three-stages of the ground-based missile defense system. In addition, the Company produces advanced flares and decoys that provide illumination for search and rescue missions, and countermeasures against missile attacks. The Company also produces thermal management systems that provide heating and cooling for spacecraft, either on-orbit or traveling through the solar system.
The Company competes with GenCorp Inc., Chemring Group, PLC, United Technologies Corporation, Orbital Sciences Corporation, Ball Aerospace & Technologies Corporation, General Dynamics-Integrated Space Systems, Sierra Nevada Corporation, AASC and Keystone & ARDE of United Technologies.
Because the company's business was heavily dependent on military contracts, the continuing decrease in the size of the U.S. defense budget posed a threat to Alliant's profitability. Between 1985 and 1993 the U.S. weapons-procurement budget plummeted by more than half, and further cuts loomed in the future. "It's important that we manage our business to the realities of the marketplace during this period of rapid change in the defense industry," Warson told the Wall Street Journal on January 28, 1993. To reduce costs, Alliant shed another 1,700 employees in 1993, dropping the company's total below 4,000. Alliant also scaled back production of its Adam land mine, disposal AT-4 infantry weapon, and MK 46 torpedo. With the savings from these curtailed operations, Alliant hoped to raise profit margins to offset the impact of declining sales, which dropped from $1.1 billion in 1992 to $800 million in 1993.
Alliant ultimately recognized that its continued survival would require strategic shifts as well as organizational restructuring. As the July 13, 1994, Wall Street Journal explained, Alliant strove to gain "entry into new markets" instead of relying for business predominantly on waning government procurement contracts. In 1993, for instance, Alliant formed a joint venture with the Ukrainian government to dismantle stockpiles of munitions left over from the Soviet Union. In this way the company sought to apply its substantial expertise in munitions handling to an arena that was not dependent on the Pentagon's budget.
As a further effort to widen the scope of its business, Alliant acquired the aerospace division of Hercules Inc. in July 1994. The aerospace operations of Delaware-based Hercules produced rocket motors for space launch and strategic nuclear missiles. This market segment was a new realm for Alliant, but it provided the company with an array of opportunities since the demand for communications satellites was growing rapidly. Such satellites provided mobile telephone services, direct-to-home television feeds, and paging and messaging services. According to the November 10, 1995, Wall Street Journal, analysts speculated that more than 350 satellites would be sent into space between 1995 and 2000. Armed with the capacity to manufacture the rocket motors used to launch these satellites--which it had gained by purchasing Hercules--Alliant was ideally situated to capitalize on the boom. Nevertheless, to ensure continued profitability, the company cut its workforce by an additional 20 percent (about 700 jobs) in 1995.
Alliant also began to eliminate units that did not conform to its new strategy. In December 1996 the company sold its Marine Systems Groups--which produced torpedoes, mine-detection equipment, and other naval weaponry&mdashø General Motors' Hughes Electronics. The move enabled Alliant to reduce its debt by an additional $89 million and to concentrate more fully on its profitable rocket technology.
Alliant instituted other changes as well. Instead of continuing to compete head-on with defense industry giants such as Boeing and Raytheon, Alliant began to forge partnerships with them. In June 1995, for example, Alliant was awarded a multimillion-dollar contract from the McDonnell Douglas Corporation to produce solid rocket propulsion systems for the Delta III space launch vehicle. In addition to its 1997 contract with the Lockheed Martin Corp. to manufacture a component of the F-22 Raptor fighter jet, Alliant received a long-term contract from the Boeing Co. in June 1998--worth $750 million&mdashø manufacture solid rocket boosters for Boeing's Delta space launch vehicles.
Of course, Alliant did not abandon its lucrative position in the munitions industry. While the end of the cold war had changed the needs of the U.S. military, the outbreak of bloody regional conflicts in the former Yugoslavia and in various parts of Africa underscored the importance of basic munitions. With the U.S. Congress reluctant to devote vast sums to develop entirely new weapons platforms, the Department of Defense focused heavily on upgrading the capabilities of existing ammunition and electronic warfare and surveillance systems. Alliant strove to meet these needs. The company's low-cost mortar and artillery fuses led the field, and Alliant was also the sole provider of VOLCANO and Shielder antitank systems.
Alliant's strategy of creating new markets while simultaneously bolstering its existing sectors proved to be successful. After a dismal year in 1995, in which Alliant's net income dropped as a result of restructuring charges, the company's sales and profits rose in 1996 and 1997. In 1998 Alliant's net income rose, and the ratio of its total debt to capitalization declined. Sales in 1999 grew 1.4 percent to reach $1.09 billion. Even more telling was the tectonic shift in Alliant's commercial-to-military sales ratio. In 1995 three percent of Alliant's sales were to commercial clients, with the remaining 97 percent going to the military. Fueled by its burgeoning aerospace sector, 16 percent of Alliant's sales were to commercial clients by 1999, with 84 percent to the military. With a new chairman and CEO in place by January 1999, Alliant's future looked hopeful. Paul David Miller, the company's chief, assured stockholders that Alliant's defense business would remain stable and that its role in solid propulsion would continue to expand.
OVERALL
Beta: 0.83
Market Cap (Mil.): $2,356.23
Shares Outstanding (Mil.): 33.49
Annual Dividend: 0.80
Yield (%): 1.14
FINANCIALS
ATK Industry Sector
P/E (TTM): 7.85 23.29 17.41
EPS (TTM): 63.40 -- --
ROI: 9.55 4.90 3.06
ROE: 29.32 19.86 5.59
Statistics:
Public Company
Incorporated: 1990
Employees: 6,110
Sales: $1.09 billion (1999)
Stock Exchanges: New York
Ticker Symbol: ATK
NAIC: 336415 Guided Missile & Space Vehicle Propul-sion Unit & Propulsion Unit Parts Manufacturing; 332993 Ammunition (Except Small Arms) Manufac-turing; 332995 Other Ordnance & Accessories Manufacturing 334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System & Instrument Manufacturing; 54133 Engineering Services
Name Age Since Current Position
Fogleman, Ronald 68 2009 Non-Executive Chairman of the Board
DeYoung, Mark 51 2010 President, Chief Executive Officer, Director
Shroyer, John 46 2010 Chief Financial Officer, Senior Vice President
Ross, Keith 53 2004 Senior Vice President, General Counsel, Secretary
Patineau, Paula 56 2004 Senior Vice President - Human Resources and Administrative Services
Larson, Blake 50 2010 Senior Vice President, President - Aerospace Systems group
Cortese, Steven 48 2006 Senior Vice President - Washington Operations
Davies, Karen 51 2010 Senior Vice President, President - ATK Armament Systems
Johnson, Ronald 47 2010 Senior Vice President, President Security and Sporting
Kahn, Mike 2010 Senior Vice President; President - ATK Missile Products Group
Van Dyke, William 65 2002 Director
Martinez, Roman 63 2004 Director
Maine, Douglas 62 2006 Director
Faga, Martin 69 2006 Director
Ronald, Mark 69 2007 Director
Krekel, Tig 56 2010 Director
Decyk, Roxanne 58 2010 Independent Director
Foley, April 2010 Independent Director
Address:
600 Second Street, Northeast
Hopkins, Minnesota 55343
U.S.A.
Alliant Techsystems Inc. (ATK), incorporated in 1990, is an aerospace and defense company with operations in 24 states, Puerto Rico, and internationally. ATK is a producer of military small-caliber ammunition for use in soldier-carried weapons, such as automatic and semi-automatic rifles, and machine guns. The Company is also the producer of medium-caliber ammunition used by crew-served weapons on armored vehicles and aircraft. ATK is one of the producers of military large-caliber ammunition used by tanks. In addition, the Company is the producer of ammunition for the sport enthusiast and law enforcement markets. ATK is the a manufacturer of solid rocket motors. The Company is also the contractor of the first stage of NASA's next-generation family of launch vehicles, the Ares I and Ares V. The Company produces other large solid rocket motors used to launch, or help launch, a variety of strategic missiles, and launch vehicles for satellite insertions or deep-space scientific exploration, including the Trident II (D5) and Minuteman III, which provide strategic deterrence capability for the United States and its allies; missile intercept solid rocket motors for Ground-based missile defense and the SM-3 program, and Graphite Epoxy Motors for launch vehicles, such as the Delta II. On April 12, 2010, ATK announced that it had acquired Blackhawk Industries Products Group Unlimited, LLC.
The Company is a manufacturer of medium-caliber chain guns for use on a variety of land, sea and airborne platforms. It is also a provider of satellite and spacecraft components and subsystems and has established itself as a provider of tactical accessories for military, security, law enforcement and sport enthusiast markets. ATK is a provider of energetics and propellants for warheads and bomb-fill. It provides advanced missile warning sensors for a variety of aircraft; fuses for a variety of weapon systems and advanced barrier systems used by the United States Armed forces and its allies. Additional business lanes include special mission aircraft for intelligence, surveillance and reconnaissance missions, and advanced flares and decoys used for night operations and search and rescue missions. The Company also produces smaller solid rocket motors for tactical missiles such as the Hellfire and Maverick. The Company has three segments, which include Armament Systems, Mission Systems and Space Systems.
Armament Systems
Armament Systems develops and produces military ammunition and gun systems, commercial products, tactical systems and equipment, and propellant and energetic materials. It also operates the United States Army ammunition plants in Independence, Missouri and Radford, Virginia. The Company produces ammunition for the sport hunting/sport enthusiast market. Its additional brands include Fusion, and Estate Cartridge. The Company also produces ammunition for the law enforcement market. In addition to ammunition, the Company includes ATK's accessories product lines, such as reloading equipment, gun care products, targets and traps, rifle scopes and mounts, and binoculars. These products are marketed under a number of well-know brand names, including RCBS, Outers, Shooter's Ridge, Weaver Optics and Nitrex.
The Company operates the Radford Army Ammunition Plant in Radford, Virginia, where it provides TNT and develops and produces energetics and a variety of warheads and bomb fill, including nitrocellulose. It also manufactures propellants for tank ammunition and tactical rocket motors. Its products include the Guided Advanced Tactical Rocket System (GATR) and flexible energetic products. The group produces medium-caliber chain guns and manages medium-caliber ammunition design and orders. These gun systems are used on a variety of land vehicles, helicopters and naval vessels, including the Bradley Fighting Vehicle, the Expeditionary Fighting Vehicle, Light Armored Vehicle and Apache helicopter. Its products include the Light Weight 25mm gun system and ammunition suite, the Palletized Autonomous Weapon System, and the M230LF gun system. The group provides tactical accessories to the armed forces and allies, special operations forces, law enforcement (both domestic and international) and sport enthusiasts.
The Company competes with General Dynamics Corporation, BAE Systems, Winchester Ammunition of Olin Corporation; Remington Arms; and various smaller manufacturers and importers, including Hornady, Black Hills Ammunition, Wolf, Rio Ammunition, Fiocchi Ammunition, and Selliers & Belloitt.
Mission Systems
Mission Systems operates across in large caliber direct fires, force protection, precision guided munitions, missiles, propulsion, missile defense, fuzes and warheads, composites, special mission aircraft, electronic warfare, military aircraft structures, commercial aircraft structures and launch structures. During the fiscal year ended March 31, 2010 (fiscal 2010), the Mission Systems consisted of more than 1,000 different programs for United States and allied armed forces, National Aeronautics and Space Administration (NASA) and international governments.
The Company is a provider of composite aircraft components for military and commercial aircraft manufacturers. It provides composite wing skins and nacelles for the F-35 II Lightning, a fifth-generation fighter aircraft for the United States military and its allies. The Company is also under contract to produce composite stringers and frames for the Airbus A350 passenger jetliner. Its additional composite programs include containment cases for General Electric's GEnx engine which is used to power the Boeing 747-8 Cargo aircraft, and the Rolls Royce Trent XWB, which is used to power the A350 aircraft.
Mission Systems segment is the production home to the Company's AAR-47 missile warning system, which is used by a variety of fixed and rotor-wing aircraft to defeat shoulder-fired missile threats. The Company holds one of two contracts to develop a next-generation missile warning system, the Joint Allied Threat Awareness System (JATAS). The Company also provides special-mission aircraft to the United States Government and international customers. These aircraft are equipped for advanced intelligence, surveillance and reconnaissance missions, as well as search and rescue missions.
The Company competes with GenCorp Inc., General Dynamics Corporation, Lockheed Martin Corporation, Raytheon Company, Textron Inc., Pratt & Whitney Space and Missile Propulsion of United Technologies Corporation, The Boeing Company, L-3 Communications Corporation, Northrop Grumman Corporation, GKN plc, AAR Corp., Vought Aircraft Industries, Inc., Goodrich Corporation, Applied Aerospace Structures Corporation, Science Applications International Corporation, Ball Corporation and Georgia University of Technology.
Space Systems
Space Systems produces rocket motor systems for human and cargo launch vehicles, conventional and strategic missiles, missile defense interceptors, small and micro-satellites, satellite components, structures and subsystems, lightweight space deployables and solar arrays, and provides engineering and technical services. Its other products include ordnance, such as decoy and illuminating flares.
The Company is the production home for the Company's four-segment reusable solid rocket motors for the Space Shuttle program and five-segment solid rocket motors under development for NASA's next-generation launch vehicles, the Ares I and Ares V. In addition, the Space Systems group produces a launch abort system (LAS) motor for the Orion crew capsule that was designed to safely pull the crew away from the launch vehicle in the event of an emergency during the launch. The Space Shuttle, Ares I/Ares V, and LAS programs accounted for approximately 14% of ATK's total revenue in fiscal 2010.
The Company also produces large solid rocket motors for the Trident II (D5) Fleet Ballistic Missile and the Minuteman III Intercontinental Ballistic Missile. Additional solid rocket motors being produced by the group include GEM 40 and GEM 60 motors for the Delta II, Orionmotors for the Orbital Science Corporation's Pegasus, Taurus, and Minotaur launch vehicles, and CASTOR motors for Japan's H-11A and Orbital Sciences Taurus rocket.
The Company supplies Orion motors for all three-stages of the ground-based missile defense system. In addition, the Company produces advanced flares and decoys that provide illumination for search and rescue missions, and countermeasures against missile attacks. The Company also produces thermal management systems that provide heating and cooling for spacecraft, either on-orbit or traveling through the solar system.
The Company competes with GenCorp Inc., Chemring Group, PLC, United Technologies Corporation, Orbital Sciences Corporation, Ball Aerospace & Technologies Corporation, General Dynamics-Integrated Space Systems, Sierra Nevada Corporation, AASC and Keystone & ARDE of United Technologies.
Because the company's business was heavily dependent on military contracts, the continuing decrease in the size of the U.S. defense budget posed a threat to Alliant's profitability. Between 1985 and 1993 the U.S. weapons-procurement budget plummeted by more than half, and further cuts loomed in the future. "It's important that we manage our business to the realities of the marketplace during this period of rapid change in the defense industry," Warson told the Wall Street Journal on January 28, 1993. To reduce costs, Alliant shed another 1,700 employees in 1993, dropping the company's total below 4,000. Alliant also scaled back production of its Adam land mine, disposal AT-4 infantry weapon, and MK 46 torpedo. With the savings from these curtailed operations, Alliant hoped to raise profit margins to offset the impact of declining sales, which dropped from $1.1 billion in 1992 to $800 million in 1993.
Alliant ultimately recognized that its continued survival would require strategic shifts as well as organizational restructuring. As the July 13, 1994, Wall Street Journal explained, Alliant strove to gain "entry into new markets" instead of relying for business predominantly on waning government procurement contracts. In 1993, for instance, Alliant formed a joint venture with the Ukrainian government to dismantle stockpiles of munitions left over from the Soviet Union. In this way the company sought to apply its substantial expertise in munitions handling to an arena that was not dependent on the Pentagon's budget.
As a further effort to widen the scope of its business, Alliant acquired the aerospace division of Hercules Inc. in July 1994. The aerospace operations of Delaware-based Hercules produced rocket motors for space launch and strategic nuclear missiles. This market segment was a new realm for Alliant, but it provided the company with an array of opportunities since the demand for communications satellites was growing rapidly. Such satellites provided mobile telephone services, direct-to-home television feeds, and paging and messaging services. According to the November 10, 1995, Wall Street Journal, analysts speculated that more than 350 satellites would be sent into space between 1995 and 2000. Armed with the capacity to manufacture the rocket motors used to launch these satellites--which it had gained by purchasing Hercules--Alliant was ideally situated to capitalize on the boom. Nevertheless, to ensure continued profitability, the company cut its workforce by an additional 20 percent (about 700 jobs) in 1995.
Alliant also began to eliminate units that did not conform to its new strategy. In December 1996 the company sold its Marine Systems Groups--which produced torpedoes, mine-detection equipment, and other naval weaponry&mdashø General Motors' Hughes Electronics. The move enabled Alliant to reduce its debt by an additional $89 million and to concentrate more fully on its profitable rocket technology.
Alliant instituted other changes as well. Instead of continuing to compete head-on with defense industry giants such as Boeing and Raytheon, Alliant began to forge partnerships with them. In June 1995, for example, Alliant was awarded a multimillion-dollar contract from the McDonnell Douglas Corporation to produce solid rocket propulsion systems for the Delta III space launch vehicle. In addition to its 1997 contract with the Lockheed Martin Corp. to manufacture a component of the F-22 Raptor fighter jet, Alliant received a long-term contract from the Boeing Co. in June 1998--worth $750 million&mdashø manufacture solid rocket boosters for Boeing's Delta space launch vehicles.
Of course, Alliant did not abandon its lucrative position in the munitions industry. While the end of the cold war had changed the needs of the U.S. military, the outbreak of bloody regional conflicts in the former Yugoslavia and in various parts of Africa underscored the importance of basic munitions. With the U.S. Congress reluctant to devote vast sums to develop entirely new weapons platforms, the Department of Defense focused heavily on upgrading the capabilities of existing ammunition and electronic warfare and surveillance systems. Alliant strove to meet these needs. The company's low-cost mortar and artillery fuses led the field, and Alliant was also the sole provider of VOLCANO and Shielder antitank systems.
Alliant's strategy of creating new markets while simultaneously bolstering its existing sectors proved to be successful. After a dismal year in 1995, in which Alliant's net income dropped as a result of restructuring charges, the company's sales and profits rose in 1996 and 1997. In 1998 Alliant's net income rose, and the ratio of its total debt to capitalization declined. Sales in 1999 grew 1.4 percent to reach $1.09 billion. Even more telling was the tectonic shift in Alliant's commercial-to-military sales ratio. In 1995 three percent of Alliant's sales were to commercial clients, with the remaining 97 percent going to the military. Fueled by its burgeoning aerospace sector, 16 percent of Alliant's sales were to commercial clients by 1999, with 84 percent to the military. With a new chairman and CEO in place by January 1999, Alliant's future looked hopeful. Paul David Miller, the company's chief, assured stockholders that Alliant's defense business would remain stable and that its role in solid propulsion would continue to expand.
OVERALL
Beta: 0.83
Market Cap (Mil.): $2,356.23
Shares Outstanding (Mil.): 33.49
Annual Dividend: 0.80
Yield (%): 1.14
FINANCIALS
ATK Industry Sector
P/E (TTM): 7.85 23.29 17.41
EPS (TTM): 63.40 -- --
ROI: 9.55 4.90 3.06
ROE: 29.32 19.86 5.59
Statistics:
Public Company
Incorporated: 1990
Employees: 6,110
Sales: $1.09 billion (1999)
Stock Exchanges: New York
Ticker Symbol: ATK
NAIC: 336415 Guided Missile & Space Vehicle Propul-sion Unit & Propulsion Unit Parts Manufacturing; 332993 Ammunition (Except Small Arms) Manufac-turing; 332995 Other Ordnance & Accessories Manufacturing 334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System & Instrument Manufacturing; 54133 Engineering Services
Name Age Since Current Position
Fogleman, Ronald 68 2009 Non-Executive Chairman of the Board
DeYoung, Mark 51 2010 President, Chief Executive Officer, Director
Shroyer, John 46 2010 Chief Financial Officer, Senior Vice President
Ross, Keith 53 2004 Senior Vice President, General Counsel, Secretary
Patineau, Paula 56 2004 Senior Vice President - Human Resources and Administrative Services
Larson, Blake 50 2010 Senior Vice President, President - Aerospace Systems group
Cortese, Steven 48 2006 Senior Vice President - Washington Operations
Davies, Karen 51 2010 Senior Vice President, President - ATK Armament Systems
Johnson, Ronald 47 2010 Senior Vice President, President Security and Sporting
Kahn, Mike 2010 Senior Vice President; President - ATK Missile Products Group
Van Dyke, William 65 2002 Director
Martinez, Roman 63 2004 Director
Maine, Douglas 62 2006 Director
Faga, Martin 69 2006 Director
Ronald, Mark 69 2007 Director
Krekel, Tig 56 2010 Director
Decyk, Roxanne 58 2010 Independent Director
Foley, April 2010 Independent Director
Address:
600 Second Street, Northeast
Hopkins, Minnesota 55343
U.S.A.