By Martin Sieff Mar 15, 2006, 15:10 GMT
The ammunition and rocketry giant Alliant Techsystems, or ATK, named a new chief financial officer Tuesday and said it would fold together operations in a move that reduces its number of business units.
The Minneapolis-area company also reduced its 2006 profit outlook as it replaces debt in an expected move with a lower-rate loan but boosted its 2007 revenue and earnings expectations, Market Watch reported
For fiscal 2007, ATK forecasts higher revenue of $3.35 billion, up from $3.3 billion, while earnings are expected in a range of $4.75 to $4.90 a share, up from $4.65 to $4.80 a share. Shares of ATK traded down 0.6 percent to $74.80 on Tuesday. So far this year, the company`s stock is down 1.6 percent.
The company`s chief financial officer, Eric Rangen, will be replaced April 1 by John Shroyer, an executive with experience in the company`s ordnance business. Rangen is leaving for 'other business opportunities,' the company said.
ATK spokesman Bryce Hallowell said Rangen`s departure had nothing to do with his performance and that Shroyer`s appointment to the post reflects his operational experience at the company.
UBS analysts wrote in a research note that they were surprised by the departure but 'don`t believe the move is reflective of the state of the company or its business.' UBS rates the stock buy and the analysts have a $90 price target on the shares.
Also effective April 1, ATK will have three divisions, Market Watch said.
With some 5,000 workers, ATK`s mission systems group will bring together four units, including its space business and missile business. It will bring in the most sales of the three divisions at $1.3 billion.
Encompassing the company`s ATK Thiokol launch business and missile defense system propulsion work, the launch systems group will have more than 4,300 workers and revenue of more than $900 million. No major job cuts are expected, Market Watch said.
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