The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from PR Newswire

ATK Awarded $46.5 Million Ammunition Contract

Thursday, September 29, 2011

ATK Awarded $46.5 Million Ammunition Contract08:00 EDT Thursday, September 29, 2011ATK Commercial Training Ammunition to be Used by U.S. Navy, Air Force, Marine Corps and Coast Guard Contract Adds to ATK's Portfolio of Specialized Ammunition Products for Military UseANOKA, Minn., Sept. 29, 2011 /PRNewswire/ -- ATK (NYSE: ATK) announced that it is being awarded a $46.5 million firm-fixed-price, indefinite-delivery/indefinite-quantity contract for AA40 5.56mm frangible ammunition by the Naval Surface Warfare Center, Crane Division in Crane, Ind.  The AA40 5.56mm frangible ammunition is a commercial product that will be used by the Navy, Air Force, Marine Corps and Coast Guard in rifles and carbines chambered for this caliber without modification.The rounds are ideal for training purposes because they reduce the risk of personal injury and collateral damage during training exercises for military operations in urban terrain and close quarters battle. The frangible ammunition is designed to disintegrate into small fragments on impact, minimizing over-penetration and ricochet hazards. The polymer-compound round produces limited splash back, which vastly decreases ricochets. "This contract is a great example of how ATK is taking its industry-leading products and technologies into multiple markets," said Ron Johnson, President of ATK's Security and Sporting group.  "ATK frangible training ammunition has been recognized as the best in the business by law enforcement agencies, and we're proud that it will help prepare U.S. military personnel as well. Our team continues to work closely with customers like the Navy to provide the right product technology for their needs."Production will be performed by ATK in Anoka, MN and is expected to be completed by August 2016. The new AA40 5.56mm ammunition adds to ATK's portfolio of specialized ammunition for military applications. ATK is an aerospace, defense, and commercial products company with operations in 22 states, Puerto Rico, and internationally, and revenues of approximately $4.8 billion. News and information can be found on the Internet at 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: the challenges of developing specialized ammunition rounds; changes in governmental spending; the company's competitive environment; the terms and timing of awards and contracts; budgetary policies and product sourcing strategies; economic conditions; the supply, availability and costs of raw materials and components; or reliance on a key supplier. 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 its subsequent quarterly report on Form 10-Q and current reports on Form 8-K filed with the SEC.Media Contact:  Investor Contact:Jason NashJeff HuebschenPhone:  800-322-2342 (ext. 3878)Phone:  952-351-2929E-mail:  pressroom@atk.comE-mail:  jeff.huebschen@atk.comSOURCE ATK