ARLINGTON, Va. - FOr the first quarter of its Fiscal Year 2015 (FY15), which ended on June 29, 2014, ATK reported sales of $1.3 billion, up 18 percent from $1.1 billion in the prior-year quarter. Net income for quarter was $85.6 million compared to $72.0 million in the first quarter of FY14.
First quarter orders were $1.3 billion, down from $1.4 billion, driven by lower orders in ATK's Sporting and Aerospace Groups, partially offset by an increase in the Defense Group.
"ATK had a strong financial quarter with year-over-year increases in sales, operating profit and EPS," said Mark DeYoung, ATK President and Chief Executive Officer. "The company also achieved significant milestones in all three groups during the quarter. The Aerospace Group recorded strong performance across its programs. The Defense Group secured new orders from U.S. allies in support of our international growth strategy. And the Sporting Group delivered 13 percent organic sales growth and an increase of 50 percent organic operating profit."
INDUSTRYT SEGMENTS
Aerospace Group
First quarter sales were up 8 percent to $333 million compared to $307 million in the prior-year quarter, primarily driven by increased sales in the Aerospace Structures and Space Systems Operations divisions, partially offset by a decrease in the Space Components division.
Operating profit in the quarter increased 3 percent to $38 million compared to $37 million in the prior-year quarter. The increase was driven by higher sales, partially offset by the absence of improved profit expectations in the Space Systems Operations division recorded in the prior year.
Defense Group
Sales in the first quarter were down 7 percent to $442 million compared to $475 million in the prior-year quarter. Excluding the RFAAP pension segment close out, adjusted first quarter sales were $439 million (see reconciliation table for details). As expected, lower volumes and pricing under a new contract in the Small Caliber Systems division, as well as the absence of the prior-year performance improvements on a program within that division, contributed to the Defense Group's sales decrease, which was partially offset by foreign military sales.
Operating profit for the quarter was down 27 percent to $45 million compared to $62 million in the prior-year quarter. The decrease was driven by reduced sales as noted above.
Sporting Group
First quarter sales increased 57 percent to $564 million compared to $358 million in the prior-year quarter. Organic sales increased 13 percent. Sales from Savage and Bushnell were $42 million and $125 million, respectively.
Operating profit in the first quarter increased 79 percent to $79 million compared to $44 million in the prior-year quarter. Organic operating profit increased 50 percent, driven by additional sales as noted above, product mix, and the absence of prior-year restructuring and inventory write-offs for military accessories. Operating profit from Savage and Bushnell was $8 million and $5 million, respectively, including transition costs for Bushnell.
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