Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Joe Nadol with JP Morgan
Joseph Nadol - JP Morgan
I have a couple of questions: to start out with, just on the Aerojet performance, could you quantify the Atlas scheme adjustment and then the offsets from Redmond is my understanding?
Yasmin Seyal
Joe if I look at those, I think they are both kind of net out, big picture, to performance improvements and the issues that we had on a couple of the contracts. As you may recall we had some issues in the first quarter too. There I have said, look they are less than the fingers on one hand and pretty much the same is true of the second quarter too. They have been on different contracts and the Aerojet team has certainly worked very, very hard to put those behind us, but certainly we expect those issues to be behind us at this point in time.
Aerojet performance and the Atlas program, as Scott has said too, has been good and we are looking forward to more better performance too.
Scott Neish
The Redmond’s operations performance slightly exceeded our expectations for the second quarter, so we feel like they are getting that operation back on track.
Joseph Nadol - JP Morgan
On the Atlas contract, can you just remind us where we are, because we went to general margin on that before and is this sort of the reversal of some of that previous reserve and is there more opportunity on the upside?
Yasmin Seyal
The Atlas contract, this new Atlas contract that we have is the negotiated 2007 and 2008 performance and we took a charge, as you remember, on the call back and then we terminated or finished off the old contract and then negotiated this new buy. This new buy was negotiated at margins that we definitely like. It is in effect private contract and the performance on that has been good.
We currently have definitized the next buy of the Atlas contract too, which will take us into 2009 and into 2010. These are more for production buys than the Atlas contract now.
Joseph Nadol - JP Morgan
On the 401k issue, I have a couple of follow up questions. How far back does the situation go in terms of when the shares were purchased? Does this go back years and years or is it just the last couple of years?
- To read the full transcript on Seeking Alpha, click here »
