Orbital ATK Wins Medium & Large Caliber Ammunition Order

Soon after receiving a tank ammunition order last week, aerospace and defense company Orbital ATK, Inc. OA announced that it won another domestic and international ammunition contract valued at $105 million.

The medium- and large-caliber ammunition order will be used for multiple U.S. and allied services for air, sea and land weapons platforms. The order includes a range of 20, 25 and 30mm tactical and target practice ammunition along with the 120mm tactical and training ammunition for the Abrams Main Battle Tank.

The large caliber ammunition order contains full-rate production of the next generation 120mm Kinetic Energy anti-tank cartridge, M829A4, which has cleared initial lot acceptance testing and has received type classification. The advanced Kinetic Energy tank ammunition has features like Explosive Reactive Armor and other complex base armor that will endow the U.S. Army's Abrams Main Battle Tank with additional combat competency. This order also includes production of 120mm M1002 Multi-Purpose Anti-Tank target practice cartridge.

Production of the 20mm ammunition is for the PGU-27 target and PGU-28 tactical Semi-Armor Piercing High Explosive Incendiary. Orbital ATK will also manufacture the MK244 Armor Piercing Discarding Sabot Enhanced Lethality cartridge and M940 Multi-Purpose Tracer Self-Destruct cartridge under the 20mm ammunition order.

These ammunitions will be produced at Orbital ATK's Lake City Army Ammunition Plant which recently completed over one-million rounds of production for 20mm ammunition.

Finally, orders for the 25mm and 30mm ammunition include production of M792 High Explosive Incendiary with Tracer and Self Destruct cartridge and MK266 High Explosive Incendiary rounds, respectively.

Orbital ATK received these contracts through the U.S. Army Project Manager Maneuver Ammunition Systems in its role as the Single Manager for Conventional Ammunition.

Dulles, VA-based Orbital ATK is committed to provide the armed forces with unparalleled ammunitions supply for training and distinct combat use. Over 35 years, the company has delivered over 4 million rounds of 120mm tactical and training tank ammunition to the U.S. Army, U.S. Marine Corps and allied militaries.

Zacks Rank

Orbital ATK currently has a Zacks Rank #3 (Hold). Aerospace and defense stocks with a better rank include LMI Aerospace Inc. LMIA, Lockheed Martin Corporation LMT and General Dynamics Corporation GD. All three stocks currently carry a Zacks Rank #2 (Buy).

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