Alliant Gets Bomb Fuze Order, Analyst Downgrade

Alliant Techsystems, Inc. in Janesville, WI received an $8 million modification to a previously awarded firm-fixed-price contract (N00019-04-C-0133), exercising an option for the procurement of 9,164 FMU-139C/B electronic bomb fuzes. Meanwhile, Smith Barney Citigroup recently downgraded the company’s stock to “sell” from “hold”.

The FMU-139 series electronic bomb fuze is an electronic impact or impact-delay fuze. It is used in Mk 80 series general-purpose bombs, including laser-guided bombs. The arming times are in-flight selectable, and the functioning delay must be set during weapon assembly. Work will be performed in Rocket Center, W.V. (90%) and East Camden, Ark. (10%), and is expected to be completed in May 2007. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

The stock downgrade from Smith Barney Citigroup noted its belief that $2.4 billion defense firm has reached its peak value due to increased exposure during the war in Iraq. Alliant is best known as the largest provider of small-caliber ammunition to the U.S. Department of Defense, but also provides advanced research and products in areas as diverse as rocket motors, scramjets, stealth technology, next-generation rifles like the XM-25, and missile warning systems installed on transport planes and helicopters.