ATK Wins Competition for Laser-Guided Mortar Munition
ATK Wins Competition for Laser-Guided Mortar Munition *Second ATK Precision Systems Prime Contractor Win Within a Year
Jan 5, 2004
Minneapolis, Jan. 5, 2004 – ATK (Alliant Techsystems, NYSE: ATK) has been selected by the U.S. Army to design, develop and begin low-rate initial production (after option award) of the XM395 Precision Guided Mortar Munition (PGMM). Initial terms of the pending contract were not disclosed but the contract could lead to production with total sales of more than $500 million. Award will occur following the OSD requirements review process completion, planned for April 2004.
PGMM is ATK’s second major precision systems win within a year. In June, 2003, the company received a $223 million contract from the U.S. Navy for the Advanced Anti-Radiation Guided Missile (AARGM), the successor to the High-Speed Anti-Radiation Missile (HARM).
Dan Murphy, chief executive officer, said, "PGMM and AARGM are strategic wins for ATK. They are significant milestones on our precision systems roadmap.
"We are delivering on our precision weapons strategy outlined three years ago. The intent was to offer highly effective, low-cost solutions fully compatible with existing platforms and combat doctrine. This affordable, innovative, and successful formula provides enhanced combat capability to operating forces while enhancing prior taxpayer investment in existing military platforms. Our philosophy discriminates ATK solutions from others in the industry, enabling us to gain a foothold in a tough competitive precision weapons environment. We are adhering closely to this principle as we pursue additional precision systems milestones such as the Autonomous Naval Support Round (ANSR)."
ATK Ordnance and Ground Systems, Plymouth, Minn., will manage the PGMM program and lead system integration. Program support will be provided by ATK Missile Systems, Woodland Hills, Calif. and ATK Tactical Systems, Rocket Center, W.Va.
Ray Bronson, vice president, armament systems, ATK Ordnance and Ground Systems, said the 120mm PGMM looks, fields, and loads just like today’s unguided mortars, eliminating the need for a new mortar weapon system and reducing the need for additional training.
"PGMM is a simple-to-use, highly effective, and affordable solution that integrates state-of-the art seeker and guidance technologies," said Bronson. "It is designed to defeat targets at distances beyond seven thousand meters, with accuracy and lethality that will give our combat forces a significant advantage."
The PGMM projectile flies ballistically to a laser-designated target, maneuvers in flight, and delivers its warhead for maximum effectiveness while minimizing collateral damage. Its modular design allows enhancements to meet future combat soldier requirements in range and lethality.
The Product Manager for Mortar Systems, reporting to the Project Manager, Combat Ammunition Systems, Picatinny Arsenal, N.J., is the material developer for PGMM, and played a critical role in the development of smooth-bore, cannon-launched technology adopted by ATK’s PGMM concept.
ATK is a $2.2 billion aerospace and defense company with strong positions in propulsion, composite structures, munitions, precision capabilities, and civil and sporting ammunition. The company, which is headquartered in Edina, Minn., employs approximately 12,500 people and has three business groups: Precision Systems, Aerospace, and Ammunition and Related Products. ATK news and information can be found on the Internet at www.atk.com.
This news release contains statements that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those factors are: changes in governmental spending and budgetary policies, economic conditions, the company's competitive environment, the timing of awards and contracts, program performance, and sales projections. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, reference should be made to ATK’s filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K.
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