| Based on
a 15% increase in its order book, expected to reach 6 billion,
ATK raised its full-year FY08 sales guidance by about 3.8%,
a range of $4.0 - $4.1 billion. The company is raising projected
Earning Per Share guidance to $6.15 - $6.25 from the previous
range of $5.95 - $6.15. The company expects a full-year free-cash
flow of approximately $260 million.
The best performance was achieved by the ammunition systems
group, which increased sales by 17% to 336 million. The increase
reflects strong sales growth particularly in the small and medium
caliber ammunition, both civil and military, partially offset
by lower sales in energetics. The group's operating profit rose
46% to $29 million. However, this level is exceptional and for
the full-year, ATK expects margins in the Ammunition Systems
Group to be in the mid-nine percent range.
Sales in the Launch Systems Group rose by 15% to $305 million
with NASA's Ares I program contributing to the increase, partially
offset by the expected decrease of the Minuteman III missile
program. Operating profit rose by 19% to $45. The company expects
full year's margins to at around 14%.
ATK's Mission Systems Group sales grew by 17% $318 million
driven by missile defense programs, space systems and additional
aircraft intelligence, surveillance and reconnaissance (ISR)
work. Operating profit for the group increased 24% to $34 million.
ATK continues to expect full-year margins in the Mission Systems
Group of approximately 10 percent.
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