* Sees FY 2015 earnings of $10.80-11.20/shr vs est $11.28
* Expects weakness at defense, aerospace business
* Shares fall as much as 7.4 percent
(Adds CEO comment, background; updates shares)
May 15 Ammunition maker Alliant Techsystems Inc
forecast full-year 2015 earnings largely below analysts'
average estimate due to weakness in its aerospace and defense
businesses, sending its shares down as much as 7.4 percent.
Alliant, which was spun off from Honeywell International
in 1990 and is commonly known as ATK, has been hurt by
cuts in U.S. government spending in the defense sector.
The world's largest ammunition maker also said it would
record a restructuring charge in the current quarter.
"I don't think there's any significant growth that we
anticipate coming out of aerospace (this year)," Chief Executive
Mark DeYoung said on a post-earnings conference call.
The company's aerospace business has not yet fully recovered
from the loss of two major U.S. government contracts in 2010 and
The aerospace business, which makes rocket motor systems for
human and cargo launch vehicles, recorded a 12 percent drop in
operating profit for the fourth quarter ended March 31.
The company is trying to increase its focus on its aerospace
and defense businesses. It said last month it would merge with
Orbital Sciences Corp, after spinning off its sporting
ATK's aerospace and defense businesses account for about
two-thirds of its revenue.
The company's defense business is expected to be hit by
lower demand for medium caliber ammunition at its Lake City Army
Ammunition plant partly due to higher competition, DeYoung said.
ATK forecast earnings of $10.80-$11.20 per share for the
year ending March 31, 2015.
Analysts on average were expecting earnings of $11.28 per
share, according to Thomson Reuters I/B/E/S.
The company said it would record a $10 million, or 19 cents
per share, restructuring charge in the first quarter.
Total revenue rose about 17 percent to $1.35 billion in the
Net income attributable to ATK rose 32 percent to $96.0
million, or $2.90 per share. Excluding items, the company earned
$2.59 a share.
Analysts had expected earnings of $2.41 per share on revenue
ATK's shares were down 6.74 percent at $137.93 on Thursday
afternoon on the New York Stock Exchange. They gained about 80
percent in the year to Wednesday's close, compared with a 34
percent rise in the Dow Jones U.S. Aerospace & Defense index
(Reporting by Ankit Ajmera in Bangalore; Editing by Savio
D'Souza and Simon Jennings)