UPDATE 1-Alliant Techsystems posts higher profit

Thu Nov 4, 2010 10:06am EDT

* Q2 EPS $2.91 vs. estimate $2.81

* Full-year outlook raised

* Shares up 0.6 percent

ATLANTA, Nov 4 (Reuters) - Alliant Techsystems Inc (ATK.N), which makes ammunition and booster rockets, posted higher quarterly earnings on Thursday, aided by a tax benefit, and raised its full-year outlook.

Net income rose 34 percent to $97.2 million, or $2.91 a share, in the second quarter ended Oct. 3 from $72.5 million, or $2.19 a share, a year earlier.

Analysts on average expected profit of $2.81 a share, according to Thomson Reuters I/B/E/S.

The company said its tax rate for the quarter was lower than a year earlier, helped by a settlement of U.S. Internal Revenue Service audits of previous years' tax returns.

Quarterly sales were about flat at $1.21 billion.

Alliant Techsystems has been moving to garner more commercial business to offset declines in its government work as the NASA shuttle program winds down.

The company said it expected full-year profit of $8.90 to $9.10 a share, compared with a prior view of $8.50 to $8.80. Analysts expect $9.20 a share.

Shares of Alliant Techsystems were up 0.6 percent at $77.64 in morning trading. (Reporting by Karen Jacobs; Editing by Lisa Von Ahn)

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