Alliant Techsystems Inc.
) has received a contract, worth more than $100 million, from
Airbus Military to manufacture composite wing cover stringers for
the A400M military transport aircrafts. Per the agreement,
Alliant will provide 122 wing cover stringers per aircraft for
Airbus's 180 aircrafts. The company will roll out the deliveries
from its Aircraft Commercial Center of Excellence ("ACCE")
facility in Clearfield, Utah.
Airbus Military's A400M aircraft is a new generation,
cost-effective, four-engine, high-speed turboprop military
transport aircraft. With eight-bladed propellers, the A400M
aircraft is able to travel with speed of up to Mach 0.72 and
altitudes of up to 37,000 feet.
Airbus has designed this aircraft to meet the needs of the North
Atlantic Treaty Organization ("NATO") nations and other
international air forces. This aircraft is on high demand and
Airbus has already received contracts to sale 174 A400M
If sales of aircrafts rise, Alliant, as an expert manufacturer
of composite wing cover stringers, will correspondingly get more
contracts in the future. This would lead to an improvement in the
company's forthcoming financial results.
ALLIANT TECHSYS (ATK): Free Stock Analysis
ROCKWELL COLLIN (COL): Free Stock Analysis
To read this article on Zacks.com click here.
Alliant is expected to release its second-quarter of fiscal-year
2013 results on November 1, 2012 before the market opens. The
Zacks Consensus Estimates for second-quarter and fiscal-year 2013
are currently pegged at $1.48 and $7.15 per share, respectively.
We consider this contract as a finance booster for Alliant and
will enable the company to further strengthen the ongoing
strategic alliance with Airbus.
Alliant's two biggest clients are the National Aeronautics and
Space Administration and the U.S. Department of Defense, and
therefore the expected U.S. defense budget cutbacks could limit
the company's future growth prospects. In addition, higher level
of competition from a number of players in each of its business
segments is also our major concern.
Alliant Techsystems Inc. currently has a short-term Zacks #4 Rank
Arlington, Virginia-based Alliant Techsystems Inc. provides
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. With a market
capitalization of $1.85 billion, Alliant has 17,000 full time
employees. The company competes with
Rockwell Collins Inc.