Alliant Techsystems Wins $178M Contract

Zacks

Alliant Techsystems Inc. (ATK) has entered into an agreement, worth $178 million, with the United Launch Alliance (:ULA). Per the contact, the company will provide multiple composite structures to ULA, with a diameter of 13–18 feet and lengths up to 63 feet. The product portfolio includes fairings, interstages, nose cones, and payload adapters and diaphragms. Alliant Techsystems’ Aerospace Structures division will be in charge of the delivery.

ULA will utilize the aforesaid products at the United States Air Force’s Evolved Expendable Launch Vehicles (EEL.V) -- Atlas V and Delta IV.

Alliant Techsystems will roll out the products from its Large Structures Center of Excellence in Iuka, MS. The deliveries are scheduled to start from fiscal year 2014.

ULA is jointly owned by The Boeing Company (BA) and Lockheed Martin Corporation (LMT). It provides affordable, consistent, and assured access to space for U.S. government missions. ULA has three launch vehicles – Atlas V, Delta IV and Delta II.

EELV program, a U.S. Air Force’s space lift modernization program, was commenced in 1994. The objective of the program is to make space launch vehicles more cost-effective and reliable. Per the program, the existing fleets are replaced with two families of launch vehicles - the Boeing Delta IV and Lockheed Martin Atlas V. These initiatives will reduce the cost of launch of the Atlas, Delta and Titan space launch systems by 25%.

It is evident from past records that Alliant Techsystems has a strong business alliance with The Boeing and Lockheed Martin, and is continuously supporting their ULA mission. On Nov 18, 2013, the company supplied critical hardware for the ULA’s Atlas V vehicle.

The proven track records of the components enable Alliant Techsystems to become a trusted partner for the defense missions. This factor is expected to play an important role to win more contracts in the future.

Alliant Techsystems currently has a Zacks Rank #2 (Buy). Another stock in the industry looking equally good is Curtiss-Wright Corp. (CW), carrying a Zacks Rank #2.

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