Defense and aerospace equipment provider Alliant Techsystems Inc. (ATK) received orders from the U.S. allies to supply ammunitions with several calibers and ammunition services to the latter. The deal value was $186 million.
Alliant Techsystems’ Defense Group will be responsible for this contract. The company will roll out the deliveries from its facilities in the U.S. and the ammunition services will take place at the international customer facilities.
We remind investors that the U.S. defense force works jointly with its allies for numerous international missions. The current contact will enable its international counterparts to strengthen their arsenal with modern and technologically advanced ammunitions and other defense amenities, thereby countering terrorist activities in a better way.
It is evident from past records that Alliant Techsystems receives international contracts at regular intervals. The company continues to pursue several initiatives, including participating in international exhibitions, strengthening relationships with the existing clients while adding new customers to its portfolio.
Alliant Techsystems participated in the Dubai Air Show and its MC-27J multi-mission gunship got strong response from the foreign customers. The Italian Air Force selected Alliant Techsystems and another Italian company for the integration of Roll-On/Roll-Off, palletized command and control, intelligence, surveillance and reconnaissance (C2-ISR) and gun systems on the MC-27J multi-mission aircraft.
We believe the international platforms will help the company to attract more overseas customers and subsequently gain more orders.
In addition to delivering defense equipments to international as well as the U.S. governments, Alliant Techsystems has a significant presence in aerospace segment and has strong alliance with the National Aeronautics and Space Administration (:NASA) and airplane biggies, The Boeing Company (BA) and Airbus SAS.
Alliant Techsystems continues to keep its commitments in terms of maintaining product and service standard along with delivery timing. This helps the company to win more orders from different government establishments as well as private organizations.
Alliant Techsystems currently has a Zacks Rank #2 (Buy). Some other stocks in the industry looking equally good are Astronics Corporation (ATRO) and Curtiss-Wright Corporation (CW). While Astronics holds a Zacks Rank #1 (Strong Buy), Curtiss-Wright carries a Zacks Rank #2 (Buy).