Alliant Techsystems Inc. F2Q09 (Qtr. End 09/30/08) Earnings Conference Call Transcript

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2008-10-30 18:37:08.0

Tags: Copper, Alliant Techsystems Inc., Call Transcript, Quarter, Earnings, Operational Accounting, Finance, Seeking Alpha, Copper, Alliant Techsystems Inc., Call Transcript, Quarter, Earnings, Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Thank you. Ladies and gentlemen, today's question-and-answer session will be conducted electronically. [Operator Instructions]. And we'll take our first question from Troy Lahr with Stifel Nicolaus.

Troy Lahr - Stifel Nicolaus

Thanks. Could you guys talk a little bit about Mission Systems on why you think it's going to be so strong in the back part of the year? And then also, why were sales a little later than expected in the second quarter for Mission Systems?

John L. Shroyer - Senior Vice President and Chief Financial Officer

The growth for the balance of the year coming with some of the key orders that Dan mentioned that we have received in the second quarter will start to generate revenue in the third and fourth quarter, as well as we're expecting a few more orders early in the third quarter, which are really going to drive up that revenue starting in the third quarter and even more so in the fourth quarter. In terms of year-to-date, the growth for Mission is right on track with what we've expected.

Troy Lahr - Stifel Nicolaus

Do you expected second quarter to be 2.5%, I guess?

John L. Shroyer - Senior Vice President and Chief Financial Officer

Right around 3%. That's right.

Troy Lahr - Stifel Nicolaus

Okay. And then can you talk a little bit about why Boeing joined your COT Service team, kind of what they bring and how much you guys are really going to invest in that program?

Daniel J. Murphy - Chairman, President and Chief Executive Officer

That was the PlanetSpace is the prime contractor there, and that decision was made by PlanetSpace and our content is to develop and manufacture the launch vehicle itself, but we are actually not prepared to talk about the details of the arrangement.

Troy Lahr - Stifel Nicolaus

Okay. Fair enough. And then just a last question, should we see margin improvement at Armament with copper prices coming in a little bit?

John L. Shroyer - Senior Vice President and Chief Financial Officer

We have as you know been very opportunistic in our supply agreements on copper over the last couple of years. And right now, we're in the middle of the agreements for the next few months, but should copper and the other commodities continue to stay down, which should see some slight improvement towards the end of next year and into the following year.

 

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