ATK Receives $488M in Small-Caliber Ammunition Orders
MINNEAPOLIS, May 4, 2011 /PRNewswire/ — ATK (NYSE: ATK) has received orders totaling more than $488 million for small caliber ammunition pursuant to an Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S. Army Contracting Command, Rock Island (ACC-RI). This order includes a mix of 5.56mm, 7.62mm and .50 caliber military ammunition to be produced at the Lake City Army Ammunition Plant in Independence, Mo.
ATK is the world’s leading producer of small-caliber military and commercial ammunition. The company successfully partnered with the Army to design and produce the new 5.56mm cartridge known to the U.S. warfighter as the Enhanced Performance Round (EPR).
“This latest set of orders includes an increase in the demand for the new M855A1 Enhanced Performance Round, which is getting very positive reviews by the warfighter,” explained ATK Small Caliber Systems Vice President and General Manager Mark Hissong. “We’ve produced more than 100 million rounds of the M855A1 EPR since transitioning it into full-rate production last year. We will increase EPR production rates this year as we complete the modernization of high-speed, high-volume 5.56mm production equipment used to manufacture this new high performance round.”
ATK has operated Lake City since April 2000, improving manufacturing efficiencies, increasing manufacturing rates, and partnering with the Army to modernize the facility’s infrastructure, and production processes and equipment.
ATK is an aerospace, defense, and commercial products company with operations in 23 states, Puerto Rico, and internationally, and revenues of approximately $4.8 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.
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