ATK Sales Decline; NASA Continues to Impact Quarterly Results
[Satellite TODAY 11-04-11] ATK’s Aerospace Systems sales dropped 12 percent year-over-year from $376 million to $333 million during its second quarter 2012, due to a decline in work on NASA programs, according to the company’s latest financial results issued Nov. 3.
The division’s lower sales, however, were partially offset by higher sales of ATK strategic and commercial rockets and commercial aircraft structures, the company said. Aerospace Systems’ operating profit in the second quarter declined 3 percent to $38 million, compared with $39 million in the prior-year quarter. That decrease also was driven by a reduction in sales and partially offset by operating efficiencies.
Despite the lackluster performance in its Aerospace Systems division, the company fared much better in its overall results. ATK’s company-wide second quarter orders rose to $1.4 billion from $1 billion last year. A decline in NASA human spaceflight programs, military small-caliber ammunition and energetics program contracts impacted overall second quarter sales, trimming them from $1.2 billion in the previous year to $1.1 billion in the latest quarter.
“We are executing a strategy to improve profitability, maintain our leading market positions and bring our development programs into production,” ATK President and CEO Mark DeYoung said in a statement. “We will also continue growing our presence in the commercial and international markets, making strategic investments to strengthen our portfolio, improving our competitive position and delivering shareholder value.”