ATK Reports Record Fourth Quarter 2014 Financial Results
[Via Satellite 05-19-2014] ATK reported revenue from its fourth quarter and Fiscal Year 2014 (FY14), which ended on March 31, 2014. The company had an operating profit of $170 million in the fourth quarter, a $49 million increase from the same period of the previous year. Adjusted operating profit, excluding the Radford Army Ammunition Plant (RFAAP) pension segment close-out, an environmental settlement and an acquisition inventory step-up, amounted to about $153 million for the quarter, compared to $122 million in the fourth quarter of FY13.
This increase can mostly be attributed to higher sales and profit from the company’s sporting group along with lower pension expenses. Aerospace and defense groups experienced a decline. Fully diluted Earnings Per Share (ESP) for the quarter was $2.90, compared to $2.23 ESP from the respective period of 2013. Total orders for the quarter amounted to $1.6 billion, down from $2.5 billion in the fourth quarter 2013, mostly due to lower orders for the quarter in the Sporting Group.
“ATK achieved record profitability in the quarter,” said Mark DeYoung, president and CEO of ATK. “We have proactively positioned the company to compete in new markets and adjacent lanes to ensure we continue to deliver stability and long-term growth to our shareholders.”
ATK is merging its aerospace and defense groups with Orbital Sciences to create Orbital ATK. Preceding the merger is the tax-free spin-off of the company’s sporting group to ATK shareholders to create a new standalone company. The company’s FY15 guidance does not include any impact from this transaction.