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Orbital ATK Receives $16M Military Tank Ammunition Order

Formed through the alliance of Orbital Sciences Corp. and the Aerospace and Defense groups of Alliant Techsystems Inc., Orbital ATK, Inc.OA , a leading aerospace and defense company, recently won a contract to develop the first phase of the next generation 120mm tank ammunition.

Valued at $16 million, the contract involves the development of 120mm Advanced Multi-Purpose ("AMP"), XM1147 High Explosive Multi-Purpose with Tracer cartridge. The new tank ammunition that replaces four existing rounds with a multi-purpose round will provide the Abrams Main Battle Tank crew with greater mission flexibility and main-gun capability.

AMP is equipped with various features like bunker and light-armor defeat, obstacle reduction and dismount engagement. The ammunition's multi-purpose round will facilitate the crew with an additional competence to breach reinforced walls, engage anti-tank crews and dismount at ranges of up to 2,000 meters.

In more than three decades of partnership with the U.S. Army, this Dulles-VA based company has type-classified 11 of the 13 current 120mm tactical and training rounds for the Abrams tank.

Back in Apr 2015, Orbital ATK received multiple domestic and international contracts, worth $120 million, from the U.S. and foreign clients to provide tactical and target practice medium- and large-caliber ammunition.

The medium-caliber contract contained the delivery of 20mm, 25mm, 30mm and LW30mm ammunition for use in operations at air, sea and land weapons platforms. On the other hand, large-caliber ammunition contracts included the 120mm, M1002 Multi-Purpose Anti-Tank, Target Practice with Tracer, and M865 Target Practice Cone Stabilized Discarding Sabot with Tracer.

Earlier in 2015, Orbital ATK and the U.S. Army together completed qualification for the M829E4, building the Army's fifth generation120mm kinetic energy round. Over 35 years, Orbital ATK has delivered over 4 million rounds of 120mm tactical and training tank ammunition to the U.S. Army, U.S. Marine Corps and allied militaries.

Zacks Rank

Orbital ATK currently has a Zacks Rank #3 (Hold). Aerospace and defense stocks with a better rank include LMI Aerospace Inc. LMIA , sporting a Zacks Rank #1 (Strong Buy) and Lockheed Martin Corporation LMT and The Boeing Company BA , both carrying a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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