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Alliant Inks Deal with Rolls-Royce

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Alliant Techsystems Inc. (ATK) has entered into an agreement, worth over $50 million, with the United Kingdom-based Rolls-Royce plc. If both the parties agreed, the contract could expand upto $200 million. Per the contract, the company will provide aft fan composite cases for Rolls-Royce’s new Trent XWB-97 engine for the Airbus A350-1000 aircrafts.

Alliant Techsystems’ Space Components Division will be responsible for this contract. The company will roll out the deliveries from its Aircraft Commercial Center of Excellence facility in Clearfield, Utah. The deliveries are expected to start from late 2013.

Over the years, Alliant Techsystems has a long-standing strategic alliance with Rolls-Royce and tries to meet its commitments in terms of maintaining product and service standards along with delivery timing. Since 2009, the company has been supplying aft fan cases for Rolls-Royce’s Trent XWB-84 engines.

Alliant Techsystems’ automated composites processing technology is used to trim down fabrication costs, while improving the standard of finished products. Utilization of sophisticated techniques will allow the company to fulfill Rolls-Royce's standards of product and service quality.

It is evident from the Rolls-Royce’s contract trend that it has already inked a number of deals in 2013 to supply Trent XWB engines to several international parties. As a trusted partner, Alliant Techsystems will subsequently get orders from Rolls-Royce to provide aft fan composite cases. Continuous flow of contracts from Rolls-Royce will help the company to maintain a steady performance in the forthcoming period.

Alliant Techsystems is participating in the ongoing Paris Air Show with its array of products and services. We believe this international platform will help the company to attract more international customers and subsequently bag more orders.

Alliant Techsystems currently has a Zacks Rank #2 (Buy). Other stocks from the industry that are presently performing well include Astronics Corporation (ATRO) and Kratos Defense & Security Solutions, Inc. (KTOS) with a Zacks Rank #1 (Strong Buy), and Curtiss-Wright Corporation (CW) with a Zacks Rank #2 (Buy).

Arlington, Va.-based Alliant Techsystems 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.

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