Alliant Techsystems Inc. (ATK) has won a $54 million order from the U.S. Army to supply 120mm training tank ammunition used by the M1A1/A2 Abrams main battle tank. The award is for the fourth year under a four-year contract.
Utilizing its expertise in tactical 120mm tank ammunition, Alliant produces ammunitions that are visually and ballistically similar to their counterpart tactical ammunitions to provide warfighters with an affordable, yet realistic training experience.
These high-quality training ammunitions are essential, as they prepare a warfighter to react decisively on the battlefield.
Alliant has supplied more than four million rounds of 120mm tactical and training tank ammunition to the U.S. Army, U.S. Marine Corps, and allied militaries since 1980. Based on experience, Alliant has constantly been delivering the 120mm ammunition, which is both reliable and affordable.
Alliant produces propellants for its tank ammunition at the Radford Army Ammunition Plant, Radford, Virginia. The company’s manufacturing center of excellence in Rocket Center, West Virginia provides high-quality metal and composite components; projectiles; and cartridge load, assembly and pack operations. Its program management is headquartered at the Plymouth, Minnesota facility.
As a prime contractor, Alliant Techsystems specializes in developing innovative and advanced weapon systems that provide affordable precision and effectiveness for artillery, mortars, tanks, naval gun systems, and tactical aircraft.
Minneapolis, Minnesota-based Alliant Techsystems is a premier aerospace, defense, and commercial products company with operations in 24 states, Puerto Rico, and internationally, and revenues of approximately $4.8 billion. The company supplies products to U.S. government agencies, and its prime contractors and sub-contractors. It also supplies ammunition and related accessories to law enforcement agencies and commercial customers.
We retain our long-term Neutral recommendation on the stock. Also, Alliant currently has a short-term Zacks #3 Rank (Hold), which is in line with its closest peers General Dynamics Corp. (GD) and Raytheon Co. (RTN).
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