ATK Reports FY11 Second-Quarter Operating Results

MINNEAPOLIS — ATK (NYSE: ATK) today reported operating results for the second quarter of its Fiscal Year 2011, which ended on October 3, 2010. Fully diluted earnings per share (EPS) rose 33 percent to $2.91, compared to $2.19 in the prior-year quarter. The increase primarily reflects a lower effective tax rate resulting from the favorable settlement of IRS audits of the company’s FY07 and FY08 tax returns. Despite $15 million of higher pension expense, second quarter margins remained strong at 11.1 percent compared to 11.2 percent in the prior-year quarter. The margins benefitted from a continued focus across the company on cost management and efficiency improvement initiatives. Second quarter sales of $1.2 billion were in line with the prior-year quarter. Second quarter net income rose 34 percent to $97 million compared to $73 million in the prior-year quarter.