ATK Reports 5% Defense Sales Uptick for 1Q

ATK (NYSE: ATK) has announced financial results for the first quarter of its 2013 fiscal year, ended on July 1, 2012.

For its defense group, the company reported a 5 percent year-over-year increase in sales to $514 million, compared to $492 million in the prior-year quarter.

The company attributed this increase to higher volume and updated sales and profit rates as ATK completed contracts at the Radford Army Ammunition Plant.

In July 2007, the company signed a multi-year contract to produce 30-milimeter cartridges for the U.S. Army and received an option in February to continue making the cartridges.

Operating profit for the defense business increased 48 percent year-over-year, going from $62 million to $91 million.

According to the company, that increase was primarily driven by a gain on the sale of residual assets and performance from the company’s contracts at Radford.

Total orders for the quarter were $1.1 billion, representing a book-to-bill ratio of approximately 1-to-1, the company said.

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