Aerospace and defense products supplier Alliant Techsystems Inc. (ATK) said it has added to its kitty new medium caliber cannon contracts worth $12.6 million. This contract will result in expanding the production of Alliant’s battle-proven 25mm M242 Bushmaster and 30/40mm Mk44 Bushmaster Automatic Cannon systems.
Alliant said it will produce both the 25mm M242 and the 30/40mm Mk44 automatic cannons under the current contract at its facility in Mesa, Arizona. The company expects to start delivery of the cannons in early 2012 and complete it by late 2015.
Alliant sells its medium caliber cannons in more than 30 countries world-wide. Currently, more than 11,000 25mm M242s are in service worldwide, and the 30/40mm Mk44 has become the weapon of choice for the world’s medium caliber fighting platforms – including ground combat vehicles, naval and aircraft applications.
The 25mm M242 and the 30/40mm Mk44 automatic cannons are the primary gun systems for the Bradley Fighting Vehicle, the Light Armored Vehicle, and the Apache Attack Helicopter.
Alliant remains committed to providing the highest quality, most reliable medium caliber weapon systems to allied forces worldwide. The current contract award reinforces the company’s focus to grow on the international front and position itself as the market-leader in the development and manufacture of cannon systems.
Alliant Techsystems supplies aerospace and defense products to U.S. government agencies, and its prime contractors and sub-contractors. The company also supplies ammunition and related accessories to law enforcement agencies and commercial customers.
We retain our long-term Neutral recommendation on the stock, supported by a short-term Zacks #3 Rank (Hold). On a competitive landscape, the company is ranked at par with its closest peers General Dynamics Corp. (GD) and Northrop Grumman Corp. (NOC), who also carry a Zacks #3 Rank.
