ATK Space Systems Sales Slip Impacts Full-Year Earnings
ATK reported a five percent, year-over-year decline in its 2012 full-year sales at $4.6 billion, which was in line with its 2012 full year guidance, according to its latest financial results issued May 4.
The company’s full-year net income dropped 16 percent from $313 million in 2011 to $263 million in 2012. ATK’s adjusted earnings-per-share, however, increased to $8.78 from $8.65, driven by updated profitability expectations on energetics and other programs, though partially offset by reductions in sales volume from its Armament and Systems and Aerospace Systems groups.
ATK’s space business has been impacted recently by NASA’s increasing reliance on the private sector for its rocket technology. ATK CEO Mark DeYoung said the company’s realignment of its business groups and continued expansion of its accessories business should help alleviate its $320 million in debt and strengthen its balance sheet.
