Aerospace and defense products supplier Alliant Techsystems Inc. (ATK) reported Thursday an increase in first-quarter profit, helped primarily by a 7.5% growth in sales and the absence of program-performance related charges recorded in the prior-year quarter. The company also raised its guidance for the full year above the Street view.
For the first quarter, net income attributable to Alliant rose to $69.43 million or $2.09 per share from $54.39 million or $1.55 per share in the previous year.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $1.95 per share for the first quarter. Analysts' estimate typically exclude special items.
Sales for the quarter grew 7.5% to $1.21 billion from $1.12 billion. Nine analysts were expecting revenue of $1.16 billion. Organic sales rose 6.3% year-over-year.
Armament Systems segment sales surged 25.1% to $552.41 million, as organic sales grew 22% helped by higher sales volume in commercial ammunition, increased modernization funds, and sales associated with Alliant's non-standard ammunition contract for Afghan Security Forces. The recent acquisition of Eagle Industries contributed $13 million of sales in the quarter.
Mission Systems sales increased 5.8% to $292.55 million, attributable chiefly to higher sales in commercial aircraft structures, precision weapons, and military composites.
Space Systems sales dipped 10.5% to $364.17 million due to retardation of the Minuteman III program and the termination of the Kinetic Energy Interceptor, which was offset by the absence of $15 million of program-performance related charges in the year-ago quarter.
Total orders surged 123% to $1.6 billion from the comparable quarter of fiscal 2009. Research and development outlay reduced to $15.38 million from $21.72 million last year.
Looking ahead to the full year 2010, the company raised its earnings guidance to a range of $8.45 to $8.60 per share and lifted its sales guidance to $4.80 billion - $4.85 billion range. Analysts currently anticipate the company to earn $8.21 per share on revenue of $4.78 billion.
Earlier, Alliant forecasted earnings to range from $8.05 to $8.25 per share on revenues of $4.73 billion - $4.80 billion for fiscal 2010.
ATK closed Wednesday's regular trading hours at $78.98 on the NYSE.
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