Alliant Techsystems Inc.
) reported third quarter fiscal 2013 pro forma earnings of $1.84
per share, up 8.2% from the Zacks Consensus Estimate of $1.70.
Quarterly results were lower than the year-ago earnings of $2.03
per share, mainly due to higher pension expenses and lower sales
on higher margin programs at the energetics division.
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GAAP earnings per share were $1.93 compared with $1.51 per share
in the prior-year quarter. The difference of 9 cents was due to a
one-time impact from the sales and profits associated with
Radford Army Ammunition Plant.
Alliant's total revenue in the third quarter of fiscal 2013 was
$1,056.2 million, surpassing the Zacks Consensus Estimate by
$52.2 million. Reported revenue was down 5.5% year over year
primarily due to the loss of an agreement for operation and
maintenance activities at the U.S. Army's Radford Army Ammunition
Plant. This was partially offset by solid bookings worth $1.4
Sales from this segment in the quarter dropped 0.2% to $301.1
million from $301.8 million in the prior-year quarter. The
year-over-year shortfall was due to a decline in sales at the
space systems operations division, partially offset by strong
performance from the space structures and components division.
This segment reported revenue of $467.5 million, down 18.4% year
over year due to a decrease in sales at the small caliber systems
and energetics divisions internationally as well as domestically.
This segment reported sales of $287.6 million versus $243.1
million in the prior-year quarter. The 18.3% year-over-year
growth in sales was backed by an increase in unit volumes and
earlier announced price-rise for ammunitions.
Alliant's cost of sales was $836.6 million, down 4% from $871.7
million in the year-ago quarter. Gross profit decreased 10.7%
year over year to $219.6 million.
Interest expenses totaled $14.1 million, down 28.8% year over
year primarily attributable to the declining debt level.
Cash and cash equivalents as of Dec 30, 2012, were $361.9 million
versus $568.8 million as of Mar 31, 2012.
Long-term debt as of Dec 30, 2012, were $1.04 billion versus
$1.27 billion as of Mar 31, 2012.
Cash provided by operating activities in the nine months ending
Dec 30, 2012, was $118.4 million versus $124.7 million in the
year-ago comparable period.
Alliant's capital expenditure was $61.4 million in the nine
months ending Dec 30, 2012, down 37.3% year over year.
Alliant raised its sales forecast to the range of $4.25-$4.3
billion from $4.1-$4.2 billion projected previously.
The company also revised its fiscal 2013 earnings guidance to the
range of $7.90-$8.10 per share, up from its prior expectation of
$7.40-$7.70 per share encouraged by increased sales estimates and
improved operating results.
Alliant reaffirmed its fiscal-year 2013 cash flow guidance in the
range of $175-$200 million. The company expects its full-year
2013 capital expenditure to be $100 million.
Other Aerospace and Defense Company Releases
Lockheed Martin Corporation
) posted fourth-quarter 2012 operating earnings of $1.73 per
share, which fell short of the Zacks Consensus Estimate of $1.79.
) reported fourth-quarter adjusted earnings of $1.60 per share,
beating the Zacks Consensus Estimate by 30 cents.
General Dynamics Corporation
) reported fourth quarter earnings of $1.39 per share, missing
the Zacks Consensus Estimate of $1.90 per share.
We expect Alliant's strong financial position and continued
contract wins to provide a positive earnings stream in the near
term. The company has also increased its shareholders value
through payment of dividend.
In addition, we expect the company's recently incorporated
business segment and realignment strategy to improve its
operating efficiency while benefiting margins.
Alliant Techsystems Inc. currently has a short-term Zacks Rank #1
Arlington, Virginia-based Alliant Techsystems Inc. delivers
aerospace and defense products to the U.S. government agencies.
The company also supplies ammunition and related accessories to
law enforcement agencies and commercial customers.