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Alliant Techsystems, Inc. F4Q08 (Qtr. End 03/31/08) Earnings Call Transcript

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2008-05-15 17:31:17.0

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Question-and-Answer Session

Excellent. Thank you very much. The question and answer session will be conducted electronically. [Operator Instructions]. And we will go to our first question from David Strauss with UBS.

David Strauss - UBS

Good morning. Hi, Dan.

Daniel J. Murphy - Chairman and Chief Executive Officer

Good morning David.

David Strauss - UBS

Could you give us an update on the USEC program where you stand on that and how it's progressing?

Daniel J. Murphy - Chairman and Chief Executive Officer

Yes it's progressing very well and we are in the initial production right now and we are performing to schedule. The manufacturer of the facility is on track, and we are actually very encouraged that we will be able to increase our scope even over what we have right now. So that's a new market for us, it's an important market. I think, as you may know the nuclear regulatory agency is predicting 34 licenses for new nuclear power plants in the next several years, and we are interested in this area and I am looking to see how we can get involved in more of it.

David Strauss - UBS

And then on Launch Systems, your forecast for mid upper to upper single digit growth, what does that assume for Minuteman and how do you kind of continue to see the run off of Minuteman progressing as we go forward beyond... before beyond the end of next year?

Daniel J. Murphy - Chairman and Chief Executive Officer

Minuteman is approaching the end as you know and we've gone from about $250 million down to I think just ...

John Shroyer - Senior Vice-President and Chief Financial Officer

$200 million David.

Daniel J. Murphy - Chairman and Chief Executive Officer

Yes okay.

John Shroyer - Senior Vice-President and Chief Financial Officer

This next fiscal year will be right around $200 million.

Daniel J. Murphy - Chairman and Chief Executive Officer

And then year after that it effectively trails off but what we are encouraged by is the Air Force has made a decision to continue Minuteman sustainment program that we had suggested. So that we can consider that 2011 and out something in the $30 million to $50 million range but the real follow on for Minuteman is in the conventional strategic weapons that are now in concept development. And each of those contemplates use of an ATK propulsion stack. So we're very well positioned for the follow on programs that are not strategic nuclear but strategic conventional.

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