Volume I - North America SAMPLE This Sample Contains Table of Contents Section lead sheets showing the systems, platforms, programs, or companies covered Two recent reports This sample material is intended to describe the contents of the Market Intelligence Service and to serve as an example of the information provided within the service. It is not intended to present current information or to serve as a replacement for any of Forecast International’s latest reports or forecasts. 22 Commerce Road, Newtown, CT 06470 USA Fax: 203.426-0223 EMail: sales@forecast1.com 203.426-0800 www.forecastinternational.com • • Defense & Aerospace Companies - Volume l – North America Table of Contents Index TAB A - Companies Appendices I. II. III. IV. V. VI. Recipients of Federal Contract Awards U.S. Department of Commerce U.S. Aerospace Industry Statistics Directory of Major North American Defense and Aerospace Companies Directory of International Defense and Aerospace Companies Recommended Web Sites Defense & Aerospace Companies - Volume I Archives ©2010 July 2010 Defense & Aerospace Companies, Volume l - North America Companies Lead Sheet Companies This section contains reports on DEFENSE AND AEROSPACE COMPANIES, listed alphabetically as follows: IBM ITT Corporation Kaman L-3 Communications Corp Lockheed Martin Loral Space & Communications Magellan Aerospace Corp Northrop Grumman Corporation Orbital Sciences Corporation Oshkosh Parker Hannifin Pratt & Whitney Raytheon Rockwell Collins SAIC Sequa Corporation Sikorsky Sparton Spirit AeroSystems Teledyne Technologies Textron Unisys United Technologies URS Corporation Alliant Techsystems Inc AT&T BAE Systems Inc Ball Boeing Bombardier Inc CAE Inc Computer Sciences Corporation Cubic Corporation Curtiss-Wright Danaher DRS Technologies Eastman Kodak Eaton Corp Esterline Technologies Corporation GenCorp (Aerojet) General Dynamics Corporation General Electric Goodrich Hamilton Sundstrand Harris Hawker Beechcraft Hewlett-Packard Honeywell ©2009 November 2009 Defense & Aerospace Companies, Volume l - North America Goodrich Outlook Sales & Net Income Trends Goodrich Goodrich's sales for 2009 fell 5 percent to $6.7 billion, from $7.1 billion in 2008 As a fragile recovery begins, both Boeing and Airbus have announced production increase plans As Goodrich is one of the world's key commercial aircraft equipment suppliers, its fortunes will mirror these plans Sales (USD billions) Net Income (USD millions) 8 800 700 600 6 500 400 4 300 200 2 100 0 0 05 Defense operations have continued to perform well, giving the company some relief from downward economic pressures 06 07 08 09 Sales Net Income Headquarters In 1997, a $1.3 billion merger with Rohr nearly doubled the size of BFG's aerospace segment and made it a leading producer of aircraft nacelle systems. Soon after this acquisition, a 1999 merger with Coltec Industries created a multi-industry company with leading positions in aerospace and engineered industrial products. The Goodrich Corporation Four Coliseum Centre 2730 W Tyvola Rd Charlotte, NC 28217-4578 Telephone: + 1 (704) 423-7000 Fax: + 1 (704) 423-7002 Web site: http://www.goodrich.com BFGoodrich, formed in 1870 by Dr. Benjamin Franklin Goodrich, rapidly became a leading manufacturer of rubber products, especially tires. In 1986, the company exited the tire business and focused on its growing aerospace and performance-materials businesses. To reflect the changed composition of the company, BFGoodrich changed its name to Goodrich in 2001. Today, Goodrich Corporation provides aerospace and engineered industrial products and services to customers around the world. The company employed more than 24,000 people – 15,000 in the United States and 9,000 abroad – as of early 2010. Structure and Personnel Marshall O. Larsen Chairman, President and Chief Executive Officer John J. (Jack) Carmola Segment President, Actuation and Landing Systems Cynthia M. Egnotovich Segment President, Nacelles and Interior Systems Curtis Reusser Segment President, Electronic Systems Jerry Witowski Executive Vice President, Operational Excellence and Technology Terrence G. Linnert Executive Vice President, Administration and General Counsel ©2010 Scott E. Kuechle Executive Vice President and Chief Financial Officer Jennifer Pollino Senior Vice President, Human Resources Joseph F. Andolino Vice President, Business Development and Tax Scott Cottrill Vice President and Controller Sally L. Geib Vice President, Associate General Counsel and Secretary Mike McAuley Vice President and Treasurer William G. Stiehl Vice President, Internal Audit September 2010 Page 2 Defense & Aerospace Companies, Volume l - North America Goodrich Product Area Goodrich is a provider of aerospace components, systems and services to the commercial and general aviation markets as well as defense and space. Products include aircraft engine nacelles, pylons, and thrust reversers; wheels; brakes and landing gear; emergency evacuation systems; sensors; and ice protection systems. The company also supplies instruments and avionics, and flight management and control systems. In addition, Goodrich has established itself as a premier supplier of aircraft maintenance, repair, and overhaul services. Goodrich's current structure is as follows: 1. Actuation and Landing Systems 1.1 Landing Gear 1.2 Aircraft Wheels and Brakes 1.3 Actuation Systems 1.4 Engine Components 1.4.1 Turbine Fuel Technologies 1.4.2 Turbomachinery Products 1.4.3 Power Transmission 2. Electronic Systems 2.1 Sensors and Integrated Systems 2.2 Engine Control and Electrical Power Systems 2.2.1 Engine Control Systems 2.2.2 Electrical Power Systems 2.3 ISR Systems 3. Nacelles and Interior Systems 3.1 Aerostructures 3.1.1 Engineered Polymer Products 3.2 Interiors 3.2.1 Evacuation Systems 3.2.2 Lighting Systems 3.2.3 Cargo Systems 3.2.4 Propulsion Systems 3.2.5 Specialty Seating Systems 3.3 Customer Services Actuation and Landing Systems Landing Gear. This group manufactures aircraft landing gear, aircraft wheels and brakes, and high-temperature composites for commercial, military, regional, and business aviation customers, as well as for space programs. Aircraft Wheels and Brakes manufactures and services aircraft wheels and brakes for a variety of commercial, regional, business, and military applications. Actuation Systems supplies a full range of aircraft actuation systems, including primary and secondary flight controls, engine and nacelle actuation systems, main and tail rotor actuation systems for helicopters, and utility actuation systems for military aircraft, such as the weapons bay door on the Joint Strike Fighter. September 2010 Engine Components is composed of three operations: Turbine Fuel Technologies. This unit specializes in the design, development, and manufacture of gas turbine fuel injection components. Turbomachinery Products. This operation produces precision turbomachinery products as a subcontractor to aviation industry primes. Power Transmission. This unit produces drive shafts and couplings as well as hydraulic actuation systems. Electronic Systems Sensors and Integrated Systems produces actuation and control systems, specialty products and systems, temperature sensors, utility systems, vehicle health management systems, in-flight entertainment systems, mission data systems, air data products and systems, fire protection systems, flight deck products and systems, fuel measurement/management systems, ice detection and protection systems, rate gyros and inertial sensors, rescue hoists and cargo winches, and security, surveillance and monitoring systems. Engine Control and Electrical Power Systems consists of two units: Engine Control Systems products include fuel metering controls, fuel pumping systems, electronic controls (software and hardware), variable geometry actuation controls, and engine health monitoring systems. These systems are utilized on both civil and military aircraft. Electrical Power Systems produces aircraft electrical power generation systems. ISR Systems builds high-performance customengineered electronics, optics, shortwave infrared cameras and arrays, intelligence exploitation systems, and electro-optical products for defense, scientific, and commercial applications. Nacelles and Interior Systems Aerostructures. This operation's core products are nacelle, pylon and flight control surfaces. Products include nacelle thrust reversers, inlet and fan cowls, nozzle assemblies, exhaust systems, and other structural components. This unit also offers maintenance, repair and overhaul (MRO) services. Engineered Polymer Products manufactures composite structures for marine and fireproof applications. Interiors provides a variety of interior products for commercial aircraft, regional and business jets and military aircraft, including helicopters. It consists of five units: Defense & Aerospace Companies, Volume l - North America Page 3 Goodrich Evacuation Systems. Products include slides and slide/ rafts to life rafts. Lighting Systems. This unit produces all types of lights, including passenger service units, strobe light systems, landing and taxi lights with high-intensity discharge xenon tubes, and LED lights for various applications. Cargo Systems. This unit produces powered cargohandling systems for fast and easy loading and unloading of aircraft. Propulsion Systems manufactures electro-explosive devices, gas generators, stun grenades, and rocket motors. Also offers complete air crew escape systems, including canopy removal tools, sequencing systems, and the Advanced Concept Ejection Seat (ACES). Specialty Seating Systems provides cockpit and cabin crew seats for business, regional, commercial and military aircraft, in addition to fully assembled ejection seats for military aircraft. Customer Services. This business unit primarily provides aftermarket product support as well as MRO services. Facilities Selected Goodrich facilities are detailed below. For a full listing, please see: http://www.goodrich.com/Locations Actuation and Landing Systems Landing Gear, 8000 Marble Ave, Cleveland, OH 441052060. Business unit headquarters, military unit headquarters, engineering, customer service, manufacturing, machining, assembly and administration. Aircraft Wheels and Brakes, 101 Waco St, PO Box 340, Troy, OH 45373. Telephone: + 1 (937) 339-3811. Business unit headquarters and manufacturing. Wheel and brake service center. Actuation Systems, Stafford Rd, Fordhouses, Wolverhampton WV10 7EH, U.K. Telephone: + 44 1902 624 644. Business unit headquarters, Manufacturing, maintenance and product support. Sensors and Integrated Systems, 100 Panton Rd, Vergennes, VT 05491. Telephone: + 1 (802) 877-2911. Electric brake control and actuation systems, electromechanical actuation systems, data concentrators, fire protection systems, fuel measurement and management systems, proximity sensing systems and vehicle management systems design, manufacturing and support. Sensors and Integrated Systems, 1555 Corporate Woods Pkwy, Uniontown, OH 44685. Telephone: + 1 (330) 374-3040. Ice detection and protection systems, potable water systems, specialty composites and heaters and supplemental heating systems. Engine Control Systems, Charter Oak Blvd, PO Box 330651, West Hartford, CT 06133-0651. North American Operations, small engine engineering, manufacturing and product support. Engine Components, PO Box 65100, 2200 Delavan Dr, West Des Moines, IA 50265. Telephone: + 1 (515) 274-1561. Product support operations, service center and research. ISR Systems, 100 Wooster Heights Rd, Danbury, CT 06810. High-quality electro-optical and special-purpose products to support critical military and civil space missions. Defense-related laser warning systems, ground and airborne. Engine Components, Blades and Vanes, 323 S Bracken Ln, Chandler, AZ 85224. Telephone: + 1 (480) 857-5700. Manufacturing. ISR Systems, 6600 Gulton Ct NE, Albuquerque, NM 87109. Telephone: + 1 (505) 345-9031. Satellite and launch vehicle electronic systems and engineering. Electronic Systems Sensors and Integrated Systems, 14300 Judicial Rd, Burnsville, MN 55306-4898. Telephone: + 1 (952) 892-4000. Business unit headquarters. Air data sensors, angle of attack systems, electronic flight bags, engine sensors and sensing suites, ice detection and protection systems, rate gyros and inertial sensors, SmartProbe™ air data systems, temperature sensors, security and surveillance systems, windshield wiper systems. Sensors and Integrated Systems, 1 Cupania Circle, Monterey Park, CA 91755. Telephone: + 1 (323) 837-2715. Airborne mission data, video recording and debrief products for the defense industry, and cabin video systems for commercial airlines. ©2010 Nacelles and Interior Systems Aerostructures, 850 Lagoon Dr, Chula Vista, CA 92012. Telephone: + 1 (619) 691-4111. Business unit headquarters, aircraft structures, nacelle and pylon systems and MRO services. September 2010 Page 4 Defense & Aerospace Companies, Volume l - North America Goodrich Engineered Polymer Products, 6061 Goodrich Blvd, Jacksonville, FL 32226. Telephone: + 1 (904) 757-3660. Composite structures and component design, manufacturing and product support. Interiors, 3414 S 5th St, Phoenix, AZ 85040. Telephone: + 1 (602) 243-2200. Business unit headquarters, evacuation systems, slides, slide/rafts and life raft manufacturing. (707) 422-1880. Energetic devices consisting of cartridge-actuated devices, propellant-actuated devices, and linear explosive products. Goodrich Lighting Systems GmbH, Bertramstrasse 8, 59557 Lippstadt, Germany. Telephone: + 49 2941 7676 0. Designs, develops, manufactures, tests and repairs interior and exterior aircraft lighting products. Web site: http://www.goodrich-lighting.com Interiors, Propulsion Systems, 3530 Branscombe Rd, PO Box KK, Fairfield CA 94533. Telephone: + 1 Corporate Overview Serving the aviation and space markets worldwide, Goodrich is one of the largest suppliers of aircraft systems and components. Virtually every aircraft flying in the world today is equipped or could be serviced by Goodrich. New Products and Services Submarine Components. In April 2010, Goodrich was awarded a contract from Northrop Grumman Shipbuilding to manufacture lightweight, composite sail cusps for the next eight Virginia-class nuclear fast attack submarines, collectively referred to as Block III. Delivery of the first sail cusp is scheduled for the second quarter 2011. Contract value was not disclosed. In January 2010, Northrop Grumman awarded Goodrich a $49 million contract for various components, including the bow dome and sonar and weapons equipment. Goodrich's Engineered Polymer Products team in Jacksonville, Florida, is building the components. Night Vision Technology. In November 2009, Goodrich was selected by the Defense Advanced Research Project Agency (DARPA) to further develop its shortwave infrared (SWIR) imaging technology for enhanced night vision capability. Under DARPA's Photon Counting Array (PCAR) program, Goodrich will develop materials and circuitry to allow its small, lightweight cameras to provide images under darker conditions than previously possible. Work will be performed at Goodrich's ISR Systems business in Princeton, New Jersey. A350 XWB Components. In October 2009, Goodrich signed a research agreement with Rolls-Royce to develop the next generation of fuel nozzles for "lean burn" combustion technology systems that would be used on future environmentally responsible gas turbine aircraft engines. Goodrich also has been selected to supply Rolls-Royce with the combustion system fuel nozzles for the new Rolls-Royce Trent XWB engine program for the Airbus A350 XWB commercial aircraft. September 2010 All work will be performed by Goodrich's Engine Components team in West Des Moines, Iowa. In May 2009, Goodrich was selected by Airbus to supply the external video system for the new A350 XWB commercial aircraft. Goodrich expects the award to generate more than $1 billion in original equipment and aftermarket revenue over the life of the program. Work will be performed by Goodrich's Sensors and Integrated Systems teams in Burnsville, Minnesota, and Toulouse, France. In December 2008, Goodrich was selected to supply wheels and carbon brakes for all variants of the A350 XWB family of aircraft. The selection is expected to generate more than $3 billion in revenue over the life of the program. The equipment will be provided by Goodrich's Aircraft Wheels and Brakes team in Troy, Ohio. In September 2008, Goodrich was selected to supply the air data system (ADS) as well as ice detection system for the new A350 XWB. Together, the awards are expected to generate more than $600 million in original equipment and aftermarket revenue over 20 years. Work will be performed by Goodrich's Sensors and Integrated Systems team in Burnsville. ORS Sat-1. In November 2008, Goodrich received a contract from the U.S. Department of Defense for the first operational satellite system in support of Operationally Responsive Space (ORS). The satellite, designated ORS Sat-1, is to be manufactured and integrated by Goodrich's ISR Systems team in Danbury, Connecticut. Goodrich has collaborated with ATK Space Systems for the ORS Sat-1 project. ATK will provide the satellite bus, or spacecraft vehicle platform. Geared Turbofan Engine Nacelle Systems. In April 2008, Pratt & Whitney selected Goodrich to be the exclusive provider of the complete nacelle systems for its new Geared Turbofan engine for both the Mitsubishi Regional Jet (MRJ) and the Bombardier CSeries aircraft. The award is expected to generate more than Defense & Aerospace Companies, Volume l - North America Page 5 Goodrich $5 billion in original equipment and aftermarket revenue for Goodrich during the 25-year period following entry into service. Under the agreement, the Goodrich Aerostructures business unit, headquartered in Chula Vista, California, will produce the entire nacelle system, including the inlet, fan cowl, thrust reverser, exhaust system, and engine mounts. NIR/SWIR Camera. In March 2008, Goodrich launched production of a new night vision and laser detection camera that can see from the near infrared (NIR) to the shortwave infrared (SWIR) portions of the light spectrum, beyond what traditional night vision goggles can see. The camera, called NIR/SWIR, uses the company's proprietary indium gallium arsenidenight vision (InGaAs-NV) technology to detect and track a broad range of battlefield infrared lasers with heightened night and daytime sensitivity. The NIR/SWIR cameras are being developed by the Sensors Unlimited Inc team in Princeton, New Jersey, within Goodrich's ISR Systems unit. KC-135R Overhaul. In January 2005, the U.S. Air Force's Oklahoma City Air Logistics Center selected Goodrich to overhaul engine fan cowls and inlets for its fleet of KC-135R Stratotanker military tankers. The work was to take place at Goodrich's Alabama Service Center located in Foley, Alabama. The contract called for Goodrich to overhaul a group of 32 KC-135R fan cowls and 10 inlets on a negotiated schedule commensurate with the Air Force's needs. 787 Components. In December 2004, Goodrich was selected by Boeing to supply the entire cargo-handling system for the new 787 Dreamliner. The Goodrich cargo system includes the mechanical system, power drive units, electrical control system, and floor panels. The contract is expected to generate over $450 million in original equipment and aftermarket sales through 2028. This was the eighth selection of Goodrich technology for the Boeing 787. Boeing has awarded Goodrich contracts for the electric braking system, exterior lighting, nacelles and thrust reversers, the proximity sensing system, the fuel quantity indicating system, and the fuel management software for the 787. In addition, Goodrich was selected by Rolls-Royce to provide the engine control system and sensor suite for the Trent 1000 engine, an engine option for the 787. These contracts are expected to generate over $7.5 billion in original equipment and aftermarket sales through 2028. DoD Strategic Sourcing Initiative. In July 2002, Goodrich, the Ogden Air Logistics Center, and the Defense Logistics Agency signed a Memorandum of Agreement covering landing gear and wheel and brake spare parts. The MoA constituted the next step in executing the Strategic Sourcing Initiative (SSI) signed ©2010 earlier in 2002 between Goodrich and multiple DoD agencies. Although the Air Force will administer the contract, other DoD customers, including the Army, the Navy, and the DLA, can procure any Goodrich product or service through the SSI. The Air Force has encouraged Goodrich's military product groups to use the contract as a tool to reduce government lead times and build a long-term relationship. The SSI contract is designed to reduce acquisition and production lead times for aircraft spares. It is potentially worth $495 million over 10 years. Joint Strike Fighter. In November 2001, Goodrich announced that it will supply the landing gear, and lead the landing-system integration effort, for the Lockheed Martin Joint Strike Fighter (JSF). The company estimated the potential value of this business at $4 billion to $5 billion over the life of the new fighter jet program, including original equipment and aftermarket sales and service, but excluding foreign military sales. Goodrich has a signed agreement in excess of $70 million for initial System Design and Development (SDD) of the landing gear and for undercarriage integration. In addition to landing gear technologies, Goodrich will provide fuel-quantity gauging components and the associated wiring harnesses as part of the aircraft's fuel measurement system. The company will be pursuing additional JSF content opportunities for aerostructures, engine systems, lighting systems, avionics, and sensors as they become available. A380 Landing Gear. In March 2001, Goodrich was selected to supply the body and wing landing gear for Airbus' new A380 aircraft. This marked the first time that Goodrich had been selected by Airbus to supply main landing gear. The program has the potential to generate total revenues of $2 billion to $3 billion over a 20-year period, depending on the number of aircraft ordered. In addition to the original equipment, Goodrich is also providing spare parts and gear packages directly to operators of A380 aircraft. Plant Expansion/Organization Update MRO Center Opened in Brazil. In October 2009, Goodrich opened a new maintenance, repair and overhaul (MRO) facility in Sao Carlos, Brazil. in the TAM Technological Condominium. The facility, Goodrich do Brasil, will initially focus on repairing International Aero Engine (IAE) V2500-A5 engine inlets, fan cowls and thrust reversers for customers in Latin America and the Caribbean. Capabilities will be expanded in the near future to service other nacelle platforms currently operating in the region. New Chinese MRO Facility. In June 2009, Goodrich opened a new facility in China's Tianjin September 2010 Page 6 Defense & Aerospace Companies, Volume l - North America Goodrich Airport Industrial Park to support nacelle and thrust reverser original equipment as well as MRO activities. The 50,000-square-foot facility will perform nacelle and thrust reverser MRO work for customers in the region. In addition, it will support engine buildup and podding work for the new Airbus A320 family aircraft final assembly line in Tianjin. The facility is part of Goodrich's Aerostructures business. The facility serves as an interim location; in 2010 Goodrich plans to open a 170,000-square-foot permanent facility in Tianjin directly across from the Airbus final assembly line. The new facility will also serve as the headquarters for Goodrich's supply chain activities in China. ISR Unit Formed. In February 2008, Goodrich created a new ISR (intelligence, surveillance and reconnaissance) Systems business unit that encompasses the former Optical and Space Systems electro-optics units. Products produced by ISR Systems serve military and industrial markets and include long-range reconnaissance sensors, electro-optical technology for space deployment, laser warning systems, and advanced miniature shortwave infrared vision technology. ISR Systems is part of Goodrich's Electronic Systems segment. Headquartered in Chelmsford, Massachusetts, the unit has locations in Danbury, Connecticut; Princeton, New Jersey; Albuquerque, New Mexico; Ithaca, New York; and Malvern (U.K.). Goodrich Reconfigures Organization. In January 2007, Goodrich realigned its organization into 11 strategic business units within its three business segments, and renamed two of the three segments. According to the company, the new, more efficient structure was expected to significantly reduce the number of autonomous business units and further enhance the company's alignment with its key product and technology areas. The new structure is detailed in the Product Area section above. Mergers/Acquisitions/Divestitures Atlantic Inertial Systems Acquired. In December 2009, Goodrich completed the $375 million acquisition of AIS Global Holdings LLC (AIS), known as Atlantic Inertial Systems, from an investment affiliate of J.F. Lehman & Company. AIS is a provider of guidance, stabilization and navigation products and systems for the military and defense market. AIS employs approximately 800 people at facilities located in Cheshire, Connecticut; Heath, Ohio; Plymouth, U.K.; and Totowa, New Jersey. Primary products include inertial sensors, inertial measurement units (IMUs), integrated IMU/GPS systems, stability systems, and terrain avoidance systems for missiles, military aircraft and land systems. AIS will become part of Goodrich's Sensors and Integrated Systems business. The deal was first announced in November 2009. Web site: http://www.atlanticinertial.com Cloud Cap Technology Acquired. In May 2009, Goodrich acquired Cloud Cap Technology Inc (CCT), a provider of proprietary end-to-end avionics solutions for small unmanned aerial vehicles (UAVs) and sensors for manned vehicles. CCT, a privately held company, has been in business for more than 10 years and employs roughly 30 people at its Hood River (Oregon) facility. Its products are used on most of the small UAV models in operation or under development. Primary products include autopilot flight management systems, inertial measurement sensors, and stabilized imaging microgimbals. CCT was to become part of Goodrich's ISR Systems business. Terms were not disclosed. Everett Facility Opened. In September 2006, Goodrich opened its new state-of-the-art nacelle integration facility, Goodrich Aerostructures Integration Services Inc, in Everett, Washington. The 140,000square-foot building is being used for engine integration and final assembly of the nacelle inlet cowl for the new Boeing 787 Dreamliner. Recon/Optical Acquired. In July 2008, Goodrich acquired the Chicago Aerial Industries (CAI) and Pacific Optical Division (POD) assets of Recon/Optical, Inc (ROI), a provider of low- to medium-altitude airborne reconnaissance cameras and optical products for the homeland security and military market. ROI employs approximately 170 people at facilities in Barrington, Illinois and Riverside, California. Major customers include original equipment defense contractors as well as U.S. and allied military forces around the world. Primary products include dual-band and infrared framing cameras, imagery and data exploitation systems, and sophisticated optical devices. The company was founded in 1922, and had 2007 revenue of $27 million. ROI was to become part of Goodrich's ISR Systems business. Terms were not disclosed. BFGoodrich Becomes Goodrich. In June 2001, the BFGoodrich Company officially changed its name to Goodrich Corporation. Goodrich Acquires TEAC Aerospace. In February 2008, Goodrich acquired TEAC Aerospace Holdings Inc (TEAC), a provider of proprietary airborne Dubai MRO Facility. In November 2006, Goodrich broke ground on a new 110,000-square-foot, purposebuilt facility in Dubai. The site provides MRO services to customers in the Middle East, Africa, and South Asia. September 2010 Defense & Aerospace Companies, Volume l - North America Page 7 Goodrich mission data, video recording and debrief products for the defense industry, and cabin video systems for commercial airlines. Terms were not disclosed. The company had 2007 revenues of over $50 million. TEAC is now part of Goodrich's Sensors and Integrated Systems business. Aviation Technical Services Divested. In October 2007, Goodrich sold its airframe heavy maintenance business, Goodrich Aviation Technical Services Inc (ATS), to Macquarie Bank Ltd. ATS has over 1,200 employees at its 950,000-square-foot facility in Everett, Washington. ATS provides maintenance, repair and overhaul services to airlines, cargo fleet operators and aircraft owners. ATS services include airframe heavy maintenance, aircraft modifications and painting, passenger-to-freighter conversions, engineering and certification, and component repair and overhaul. Terms were not disclosed. Sensors Unlimited Acquired. In October 2005, Goodrich completed the acquisition of Sensors Unlimited Inc for $60 million. The purchase included a 39,000-square-foot leased facility in Princeton, New Jersey, and more than 50 employees. Sensors Unlimited develops shortwave infrared (SWIR) technology and is a leader in indium gallium arsenide (InGaAs) imaging technology. JcAIR Test Systems Divested. In April 2005, Goodrich completed the sale of its JcAIR Test Systems business to Aeroflex Inc of Plainview, New York, for $35 million. JcAIR Test Systems, with 2004 revenues of approximately $24 million, designs and supplies a variety of specialized electronic test equipment used in the commercial and military aerospace industry. Its customers include aerospace equipment manufacturers, airframe manufacturers, and airlines. Located in New Century, Kansas, JcAIR Test Systems has approximately 130 employees. Goodrich Sells Avionics Unit to L-3. In March 2003, Goodrich completed the sale of its Avionics business to L-3 Communications for $188 million. Goodrich Avionics Systems, with 2002 revenues of approximately $100 million, manufactures and markets a variety of state-of-the-art avionics instruments and systems primarily for general aviation aircraft, business jets, and military aircraft. Its products include SkyWatch and SkyWatch HP collision avoidance systems, Stormscope weather mapping and lightning detection systems, LandMark™ terrain awareness warning systems, electronic standby instrument systems, JET and AIM gyros, and its newest innovation, the SmartDeck Integrated Flight Controls and Display System. Headquartered in Grand Rapids, Michigan, Avionics Systems has 546 employees and additional ©2010 locations in Columbus and Dayton, Ohio; Lauderdale, Florida; and Louisville, Kentucky. Ft Goodrich Buys TRW Aeronautical Systems. In October 2002, Goodrich completed its acquisition of TRW Inc's Aeronautical Systems businesses for $1.5 billion. Originally announced in June 2002, this transaction expanded Goodrich's product line and opened new growth opportunities in aerospace component manufacturing. Teaming/Competition/Joint Ventures Boeing. In October 2008, Goodrich entered into a data license with Boeing granting Goodrich Parts Manufacturing Authority (PMA) to produce replacement landing gear spare parts. The license will permit Goodrich to manufacture licensed parts under Goodrich's FAA-approved quality system and distribute them directly to operators. In February 2000, Boeing Airplane Services and Goodrich Aerospace signed a Letter of Agreement to pursue aircraft MRO activities on a worldwide basis. Under the agreement, the parties would provide the commercial aviation industry with a range of services, including line and heavy maintenance and general repair services. CFM International. In 1989, Goodrich Aerostructures and engine manufacturer CFM International signed a contract to provide nacelle systems for the CFM56-5C2 engine of the Airbus A340 airliner. CFM International is a joint venture of General Electric Aircraft Engines of the USA and France's Snecma. Goodrich Aerostructures continues to lead an international team that includes associate contractor Hispano Suiza of France. Goodrich Aerostructures is responsible for overall nacelle program management. Jeppesen. In May 2006, Goodrich entered into a teaming agreement under which Jeppesen serves as a supplier of electronic flight bag applications and data for Goodrich's EFB system. Under the agreement, Goodrich provides aircraft integration, certification, and aftermarket support services related to the EFB. Raytheon. In January 2004, Goodrich and Raytheon signed a teaming agreement under which Goodrich would serve as the lead manufacturer of composite structures and components for "Team LCS." Goodrich, through its Jacksonville, Florida-based Engineered Polymer Products division, would support Raytheon Integrated Defense Systems and its team of John J. McMullen Associates, Umoe Mandal, Atlantic Marine, and Northrop Grumman Ship Systems by providing engineering, fabrication, testing and construction of composite structures and components for the Littoral Combat Ship program. September 2010 Page 8 Defense & Aerospace Companies, Volume l - North America Goodrich Rockwell Collins. In March 2006, Goodrich entered into a teaming agreement to provide electronic flight bag and related video solutions to Rockwell Collins. These video solutions would be applied to Rockwell Collins' Flight Information Management System for military applications. The system solutions include cargo video surveillance systems, outside-the-aircraft video monitoring and recording systems, and a variety of other video systems used to enhance flight deck and flight crew situational awareness. partnership to repair and overhaul aircraft nacelles, thrust reversers, and pylon components. SIAEC acquired 30 percent of the shares of Goodrich's wholly owned subsidiary, Rohr Aero Services-Asia (RASA). SIAEC also had an option to acquire a further 10 percent equity share of RASA, subject to certain conditions. RASA was incorporated in Singapore in 1995 and, at the time the partnership was formed, operated a 60,000-square-foot MRO facility in Singapore's Loyang aerospace hub. In October 2000, Rockwell Collins and Goodrich Avionics Systems Inc formed a strategic alliance to offer customers more competitive avionics solutions for business and regional jet aircraft and additional opportunities in the aviation aftermarket. Utilizing the aircraft avionics and integration expertise from both companies, the alliance would provide opportunities for the complete integration of aircraft systems, including primary flight, navigation, communications, safety, and standby systems. Turkish Technic. In November 2007, Goodrich signed a Memorandum of Understanding with Turkish Technic Inc to establish a joint venture in Istanbul, Turkey, to perform maintenance and repair work on nacelles. Under the terms of the MoU, the joint venture company – known as Goodrich HABOM – provides MRO services and rotable support for Turkish Airlines' fleet of Airbus and Boeing aircraft. Earlier that year, Rockwell Collins and Goodrich Aerospace formed a strategic alliance to provide airlines with a broad range of equipment, parts, and maintenance services, including "single-stop solutions" for avionics, instrumentation, and other aircraft components. Within the alliance, Rockwell Collins would provide its expertise in avionics and in-flight entertainment systems, its avionics integration capabilities, and its global service network, which includes MRO of avionics equipment manufactured by Collins and other companies. Goodrich would contribute its strong avionics and airframe component MRO expertise. Rolls-Royce. In December 2008, Goodrich and Rolls-Royce completed the formation of a joint venture to develop and supply engine controls for Rolls-Royce aero engines. The joint venture company, Rolls-Royce Goodrich Engine Control Systems Ltd, operates as Aero Engine Controls. Each of the contributing companies owns 50 percent of Aero Engine Controls. Web site: http://www.aeroenginecontrols.com VEM. In June 2004, Goodrich entered into a strategic alliance with VEM (Varig Engineering Maintenance) for servicing of aircraft wheels and brakes. This agreement, which covers all civil aircraft, was a first for Goodrich's Aircraft Wheels and Brakes division. It established the VEM workshop as an authorized Goodrich Wheels and Brakes Service Center. The alliance positioned both Goodrich and VEM in South America in a leading role for the repair and overhaul of wheels and brakes. Xi'an Aircraft. In August 2009, Goodrich and Xi'an Aircraft International Corporation (XAIC) signed agreements to form two joint venture companies to produce landing gear and engine nacelle components for the fast-growing Chinese aerospace market. The new companies are expected to compete for market positions on the COMAC C919 single-aisle Chinese commercial aircraft currently under development, and also to manufacture various landing gear and nacelle components and subassemblies for other aircraft. The agreements call for the creation of two joint venture companies between XAIC and each of Goodrich Landing Gear and Goodrich Aerostructures. In each case, the new joint ventures will be equally owned. SIAEC. In March 2001, Goodrich Aerospace and SIA Engineering Company (SIAEC) entered into a Financial Results/Corporate Statistics Goodrich's sales for 2009 fell 5 percent to $6.7 billion, from $7.1 billion in 2008. The company posted net income of $597.2 million for the year, compared with $681.2 million in 2008. In 2009, 2008, and 2007, direct and indirect sales to Airbus totaled approximately 17 percent, 15 percent, and 15 percent, respectively, of consolidated sales. In 2009, 2008, and 2007, direct and indirect sales to Boeing totaled approximately 22 percent, 17 percent, and 17 percent, respectively, of consolidated sales. Research and development is company-funded. Financial statistics for the last six years, restated to the company's current presentation, are provided below. September 2010 Defense & Aerospace Companies, Volume l - North America Page 9 Goodrich Y/E December 31 (USD millions) Sales Percent Gov't Net Income R&D Expenditures Backlog Debt/Equity Ratio 2004 2005 2006 2007 2008 2009 4,700.4 20.0 172.2 3,500.0 1.41 5,202.6 18.0 263.6 4,400.0 1.18 5,719.1 16.0 482.1 247.0 4,920.0 0.87 6,392.2 17.0 482.6 280.0 5,413.0 0.60 7,061.7 17.0 681.2 284.0 4,212.0 0.65 6,685.6 22.0 597.3 239.0 4,452.0 0.67 Sales & Net Income Trends Goodrich Sales (USD billions) Net Income (USD millions) 8 800 700 600 6 500 400 4 300 200 2 100 0 0 05 06 07 Sales 08 09 Net Income Industry Segments A breakdown of the firm's sales and operating income by major business segment for the past four years is provided below. SALES (USD millions) Actuation and Landing Systems Nacelles and Interior Systems Electronics Systems TOTAL OPERATING INCOME (USD millions) Actuation and Landing Systems Nacelles and Interior Systems Electronics Systems TOTAL 2006 2007 2008 2009 2,083.8 1,983.5 1,651.8 5,719.1 2,400.6 2,169.0 1,822.6 6,392.2 2,614.9 2,485.6 1,961.2 7,061.7 2,524.3 2,322.6 1,838.7 6,685.6 2006 2007 2008 2009 137.3 416.3 218.6 772.2 247.8 531.0 247.8 1,026.6 300.0 647.5 268.8 1,216.3 266.9 515.3 276.4 1,058.6 ©2010 September 2010 Page 10 Defense & Aerospace Companies, Volume l - North America Goodrich 2008 - 2009 Sales by Segment Goodrich 38% 37% 35% 35% 28% 28% 2009 2008 Actuation Nacelles Electronics Strategic Outlook In the wake of the crash in late 2008, airlines around the world have only recently have begun to recover, with markets in Europe and North America bringing up the rear. Airlines are once again beginning to place orders, albeit at slow rates, and the wave of cancellations and deferrals has subsided. While Boeing and Airbus slowed down somewhat during the crisis, they did not drastically slash production rates, instead opting to drop productionincrease plans in response to the crisis. Now, as a fragile recovery begins, both manufacturers have announced plans for production increases. As Goodrich is one of the world's key commercial aircraft equipment suppliers, its fortunes will mirror these plans. In the past, the company benefited strongly from increased production work for both Boeing and Airbus. Likewise, the company's bottom line fell in response to the market changes brought about by the crash. As the market shifted, Goodrich responded by implementing cost-containment initiatives throughout its operations while at the same time improving productivity. In addition, the firm's defense operations have continued to perform well, giving the company some relief from downward economic pressures. Prime Award Summary The following chart and table show the dollar volume of federal prime contracts awarded Goodrich from 2005 through 2009, and the top 100 rank of the company in terms of Department of Defense contracts for each of the five years. Goodrich (USD millions) Rank Total DoD Awards September 2010 2005 2006 2007 2008 2009 77 362.6 85 371.5 81 434.2 81 484.3 81 522.3 Defense & Aerospace Companies, Volume l - North America Page 11 Goodrich Federal Contract Awards 2005 - 2009 Goodrich ($ millions) 600 484.3 500 400 522.3 434.2 362.6 371.5 05 06 300 200 100 0 07 08 09 Source: http://www.usaspending.gov Program Activity Some important aerospace and government programs currently under way at Goodrich are listed below. The briefs are intended to provide a listing of programs of major importance to the company. For detailed information on or analysis of specific aerospace and defense programs or equipment, please refer to the appropriate Forecast International binder (for example, Civil Aircraft, Military Aircraft, Military Vehicles, Warships, Missiles, Electronic Systems, and Aviation Gas Turbines). The following are the aforementioned programs under way at Goodrich: Actuation and Landing Systems provides systems, components, and related services pertaining to aircraft taxiing, takeoff, flight control, landing and stopping, as well as engine components, including fuel delivery systems and rotating assemblies. Nacelles and Interior Systems produces products associated with aircraft engines, including thrust reversers, cowlings, and nozzles, and aircraft interior products including slides, seats, cargo, and lighting systems. It also provides MRO services. Aircraft Nacelles and Components Civil Aircraft Components Military Aircraft Components Space Systems Systems Integration Electronic Systems produces a wide array of systems and components, including flight performance measurement systems, flight management systems, fuel controls, electrical systems, and reconnaissance and surveillance systems. Electronics Programs Aircraft Programs All of Goodrich's three operating segments provide components, systems and services for both commercial and military aircraft. The company describes its segments and products as follows: ©2010 ASQ-228/Advanced Targeting ForwardLooking Infrared (ATFLIR) ATFLIR is a sensor used for long-range delivery of airto-ground weapons on the F/A-18 Hornet and Super Hornet aircraft. Goodrich's ISR Systems handles production of the ATFLIR window. September 2010 Page 12 Defense & Aerospace Companies, Volume l - North America Goodrich AVR-2(V) The AVR-2(V) Laser Detection Set was designed to detect and locate the laser emissions used by guided weapons. It is integrated with the APR-39(V) radar warning receivers, and provides a combined radar/laser threat detection capability for Army, Marine, and Navy helicopters. Goodrich's ISR Systems handles production of this system. SQS-53(V) The SQS-53(V) is a bow-mounted sonar for surface vessels, designed for long-range passive and active submarine detection. Goodrich produces SQS-26/53 sonar rubber domes and windows under this program. SQS-56(V)/DE-1160/DE-1164 This is a modern sonar family for use on surface ships. Goodrich produces sonar rubber domes for the SQS-56. Space Systems Programs AMOS Affordable Modular Optimized Satellite (Amos) is a family of small communications satellites for deployment in a geosynchronous orbit. Goodrich provides Earth sensors for these satellites. Atlas V The Atlas V is a family of medium- to heavy-lift expendable launch vehicles produced by Lockheed Martin. Goodrich produces the digital acquisition system. Chandra X-ray Observatory/Constellation-X duration scientific telescope platform and one of NASA's four Great Observatories (the other three are the Hubble Space Telescope, the Compton Gamma Ray Observatory, and the Space Infrared Telescope Facility). Goodrich Optical Systems produced the cylindrical grazing incidence telescope mirrors for Chandra. Globalstar Globalstar is a satellite-based mobile communications system. Goodrich provides Earth and Sun sensors for these satellites. A total of 72 Globalstar satellites have been produced, including ground spares. Thales Alenia is building the second-generation system. Landsat Landsat is a U.S. remote sensing satellite system. The Landsat Data Continuity Mission is an innovative program to seek partnerships with industry to continue receiving critical land remote sensing data. Goodrich Space Flight Systems produced the Landsat-7 attitude determination and control system. NOAA/NPOESS National Oceanic and Atmospheric Administration (NOAA) Polar Operational Environmental Satellite Systems (POESS) are polar-orbiting meteorological spacecraft. Goodrich Space Flight Systems (Albuquerque, New Mexico) produces the Attitude Determination Control Sensor for these spacecraft. Space Shuttle The Space Shuttle is a reusable launch vehicle. Goodrich provides the wheel and brake systems for the shuttle. The Chandra X-ray Observatory (formerly called the Advanced X-ray Astrophysics Facility) is a long- U.S. Contract Awards Goodrich's most recent contracts are detailed below. Most of the company's work is as a subcontractor to major airframe providers. Date 2005 1/26/05 Award (USD millions) Contract # Description 8.3 N00019-01-C-0078 3/29/05 22.8 FA8203-05-C-0044 8/23/05 8.8 FA8208-05-D-0008 28 CH-52E integrated mechanical diagnostics and health monitoring usage system kits. 72 bogie beam assemblies applicable to the landing gear assembly on C-5 aircraft. Spares contract to procure F-15 Power Take-Off (PTO) shafts. 2006 3/23/06 5/11/06 6/28/06 16.5 10.9 5.7 W58RGZ-06-D-0087 W58RGZ-06-D-0152 W58RGZ-06-C-0166 September 2010 Hydromechanical assemblies. Digital electronic control units. Generators for the CH-47 helicopter. Defense & Aerospace Companies, Volume l - North America Page 13 Goodrich Award (USD millions) 7.7 Contract # N00104-06-C-K095 9/29/06 9/29/06 2007 5/7/07 7.4 16.0 W58RGZ-06-D-0365 FA8203-06-C-0246 37.0 FA8620-07-C-4021 5/9/07 9.4 FA8221-07-D-0002 6/26/07 17.1 N00019-06-C-0298 6/29/07 6.9 W58RGZ-07-C-0142 8/22/07 13.7 W9133L-07-C-0031 9/11/07 12.8 N00104-07-C-K099 9/24/07 2008 8/18/08 8/28/08 9/18/08 2009 9/28/09 7.4 N00104-07-C-K113 Delivery of two reconnaissance pods, one mobile ground station, and test & integration support. Forward nose landing gear door and aft nose landing door for A-10 aircraft. 56 CH-53 integrated mechanical diagnostics & health usage monitoring system kits. Support of health monitoring for Iraq- and Afghanistandeployed UH-60A/L. High-speed internal rescue hoists for the Army National Guard-Aviation. Digital recovery sequencers in support of the CAD/PAD Joint Program Office. CKU-5/C aircraft ejection seat catapults. 32.9 87.9 10.3 N00164-08-D-GP21 FA8620-08-C-3013 N00173-08-C-2134 Composite domes and sonar dome rubber windows. Four reconnaissance pods. Seven CA-247 cameras to be deployed in Iraq. 13.1 N00019-06-C-0298 47 integrated mechanical diagnostics and health usage monitoring system units for CH-53 helicopters. 2010 4/6/10 20.6 SPRTA1-10-D-0053 Jet engine fuel pump. Date 9/27/06 * ©2010 Description Digital recovery sequencers in support of the Cartridge Actuated Devices/Propellant Actuated Devices (CAD/PAD) Joint Program Office. Aircraft mount winch for the CH-47. 42 landing gear bogie beams in support of the C-5. * * September 2010 Defense & Aerospace Companies, Volume l - North America Alliant Techsystems Inc Outlook Sales & Net Income Trends Alliant Techsystems As it profits from the current conflicts, ATK is investing in diversity for its future Sales (USD billions) Net Income (USD millions) 5 300 250 4 Conflicts in Iraq and Afghanistan have kept the company's ammunition manufacturing running at an all-time high As it looks ahead, ATK has focused on complementary diversification, moving into the tactical systems field 200 3 150 2 100 50 1 0 0 06 Following the acquisitions of Eagle and Blackhawk, ATK has formed a new division, Security and Sporting 07 08 09 10 Sales Net Income Headquarters to stockholders of one share of Alliant for every four shares of owned Honeywell stock. As a result, 100 percent of Alliant's stock was distributed to Honeywell shareholders. Alliant Techsystems Inc 7480 Flying Cloud Dr Minneapolis, MN 55344 Telephone: + 1 (952) 351-3000 Fax: + 1 (952) 391-3009 Web site: http://www.atk.com Alliant Techsystems (ATK) was incorporated as a Delaware company and a wholly owned subsidiary of Honeywell on May 2, 1990, in connection with a Honeywell plan to spin off to its shareholders the following Honeywell businesses: the Defense and Marine Systems Business, the Test and Instruments Division, and the Signal Analysis Center. On September 28, 1990, Honeywell declared a distribution In early 1995, Alliant completed its acquisition of Hercules Aerospace Company, which further enhanced the company's position in propellants, warheads, and demilitarization operations. In 2001, the company strengthened its presence in propulsion and composite structures with the acquisition of Thiokol Propulsion from Alcoa Inc. Alliant employs approximately 18,000 personnel. Structure and Personnel Mark W. DeYoung President and Chief Executive Officer Steven J. Cortese Senior Vice President, Washington Operations Karen Davies Senior Vice President President, Armament Systems Ronald P. Johnson Senior Vice President President, ATK Security and Sporting Blake E. Larson Senior Vice President President, ATK Aerospace Systems ©2010 Mark L. Mele Senior Vice President, Corporate Strategy Bart Olson Interim President ATK Missile Products Paula J. Patineau Senior Vice President, Human Resources and Administrative Services Keith D. Ross Senior Vice President, General Counsel, and Secretary John L. Shroyer Senior Vice President and Chief Financial Officer Steve Wold Vice President and Treasurer August 2010 Page 2 Defense & Aerospace Companies, Volume l - North America Alliant Techsystems Inc Product Area ATK is engaged in the engineering, research, development, and manufacturing of numerous defenseoriented products, especially ammunition. In addition, it provides associated services to the U.S. government, allied governments, and other customers. ATK is now managed as detailed below: 1. 1.1 1.2 1.3 1.4 1.5 2. 2.1 2.2 2.3 2.4 3. 3.1 3.2 3.3 3.4 3.5 3.6 4. 4.1 4.2 Armament Systems Small Caliber Systems Energetic Systems Integrated Weapon Systems Commercial Products Tactical Systems Missile Products Advanced Weapons Tactical Propulsion and Controls Integrated Systems Aerospace Structures Aerospace Systems Advanced Systems Aerospace Structures Space Launch Systems Space Structures and Components Spacecraft Systems and Services Strategic Commercial Systems Security and Sporting Commercial Products Tactical Systems Armament Systems. This group makes small- and medium-caliber military ammunition, ammunition propellant, commercial and military smokeless powder, law enforcement and sporting ammunition, and ammunition reloading and cleaning products. This unit also operates the U.S. Army Lake City Army Ammunition Plant (small-caliber ammunition) and the Radford Army Ammunition Plant (rocket and gun propellent). Missile Products. This segment supplies solid propellant rocket motors, integrated boosters and upper stages, advanced ordnance, and control systems for missile defense, space, strategic, tactical, and commercial applications; high-performance composite structures for space launch vehicles, rocket motor casings, and military and commercial aircraft; and advanced hypervelocity and air-breathing propulsion systems for aerospace vehicles and weapon systems. Some key programs include the Advanced AntiRadiation Guided Missile (AARGM), Precision Guided Mortar Munition (PGMM), Extended Range Munition (ERM), Mid-Range Munition (MRM), 120mm training and tactical tank ammunition, fuzing and integrated ordnance, AAR-47 Missile Warning System, and propulsion systems for tactical missiles and guided projectiles. Aerospace Systems. This segment produces solid rocket propulsion systems and military and commercial aircraft structures. The unit provides solid rocket motors for human access to space (Space Shuttle), landand sea-based strategic missiles, commercial and government space launch vehicles, and missile defense interceptors. Products include the Space Shuttle Reusable Solid Rocket Motor (RSRM), rocket motors for the Trident II Fleet Ballistic Missile, Propulsion Replacement Program for the Minuteman intercontinental ballistic missile, Graphite Epoxy Motor (GEM) for Delta launch vehicles, CASTOR motors for the Atlas IIAS and H-IIA launch vehicles, Orion and CASTOR 120 motors for Pegasus and Taurus launch vehicles, and illumination devices. In addition, this unit produces satellite components and subsystems, as well as providing engineering and technical services. Products include structures for satellites and aircraft; thermal management systems; space system, satellites, and buses; precision-stable optical structures; solar array systems and substrates; deployable telescoping booms for space launch and recovery; pressure tanks for satellites and launch vehicles; and advanced antennas and radomes for weapons and spacecraft. Security and Sporting. This division supplies ammunition for law enforcement, military, and sporting applications; manufactures optics, reloading gear, and sport shooting accessories; and manufactures tactical accessories. Brand names include Federal Premium, CCI, Speer, RCBS, Alliant Powder, Champion, Weaver, Eagle Industries, and Blackhawk Industries. Facilities Armament Systems Armament Systems, Group Headquarters, 938 University Park Blvd, Clearfield, UT 84015. Telephone: + 1 (763) 712-7700. August 2010 Integrated Weapon Systems, 3309 North Reseda Circle, Mesa, AZ 85215. Telephone: + 1 (480) 324-8600. Fax: + 1 (480) 324-8758. New River Energetics, Radford Army Ammunition Plant, Route 114, PO Box 1, Radford, VA 24143-0100. Telephone: + 1 (540) 639-7631. Defense & Aerospace Companies, Volume l - North America Page 3 Alliant Techsystems Inc Small Caliber Division, Lake City Army Ammunition Plant, PO Box 1000, Independence, MO 64051. This government-owned, company-operated plant produces 5.56mm, 7.62mm, .30-caliber, and .50-caliber ammunition. The operation is the largest supplier of small-caliber ammunition to the U.S. DoD. Missile Products Mission Systems, Group Headquarters, Canton Crossing Tower, 11th Floor, 1501 S. Clinton St, Baltimore, MD 21224. Telephone: + 1 (410) 864-4800. Propulsion and Controls, PO Box 241, Elkton, MD 21922. Telephone: + 1 (410) 392-1000. Defense Electronics Systems, PO Box 4648, Clearwater, FL 33758-4648. Telephone: + 1 (727) 572-1900. Defense Electronics Systems, 21301 Burbank Blvd, Suite 100, Woodland Hills, CA 91367. Telephone: + 1 (818) 887-0844. Allegheny Ballistics Laboratory, 210 State Route 956, Rocket Center, WV 26726. Aerospace Systems ATK Aerospace Systems, Group Headquarters, PO Box 98, 5000 S. 8400 W., Magna, UT 84044. Telephone: + 1 (801) 251-5911. Aerospace Structures, Composites Center, Freeport Center, Building C14, UT 84016. Aerospace Systems, 6033 East Bandini Blvd, Commerce, CA 90040. Telephone: + 1 (323) 7220222. Aerospace Systems, 9617 Distribution Ave, San Diego, CA 92121. Telephone: + 1 (858) 621-5700. Space Systems – KSC Operations, Launch Support Services, Building K6-1096, OSB, RM. 3309M, M/S THIO-LSS, Kennedy Space Center, FL 32899. Telephone: + 1 (321) 861-3703. Security and Sporting ATK Security and Sporting, Group Headquarters, 900 Ehlen Dr, Anoka, MN 5530. Telephone: + 1 (800) 322-2342. ATK Tactical Systems – Eagle Industries, 1000 Biltmore Dr, Fenton, MO 63062. Telephone: + 1 (636) 343-7547. ATK Tactical Systems – Blackhawk, 34368 East Frontage Rd, Bozeman, MT 59715. Commercial Products – Federal Cartridge Company, 900 Ehlen Dr, Anoka, MN 55303-1778. Telephone: + 1 (763) 323-2300. Aerospace Structures, PO Box 990, Iuka, MS 388520990. Telephone: + 1 (662) 423-7774. Corporate Overview Alliant Techsystems' business strategy is to continue to expand its coverage in such niche areas as warheads, fuzes, unitary bombs, countermeasures, naval ammunition, mortar ammunition, and Special Forces ammunition. New Products and Services JATAS. In November 2009, ATK and BAE Systems were awarded a $32.2 million contract to develop the Joint Allied Threat Awareness System. JATAS is the next-generation missile warning system that will provide protection for U.S. Navy and U.S. Marine Corps helicopter and tilt-wing aircraft. The ATK and BAE Systems team will compete against Lockheed Martin in the JATAS Technology Demonstration (TD) phase, scheduled for 16 months. This phase will culminate in flight demonstrations of prototype systems and a final downselect award by the Navy. Work on the contract will be performed in ATK's Woodland Hills, California, and Clearwater, Florida, facilities and at BAE Systems' facility in Nashua, New Hampshire. ©2010 Other members of the JATAS industry team include DRS, Goodrich, and Symetrics. CA/FNC. In October 2009, ATK was awarded a research and development contract for the Counter Air/Future Naval Capabilities (CA/FNC) program to develop technologies that can be incorporated into nextgeneration air-to-air missile systems. The nearly $10 million contract was issued by the Naval Air Warfare Center Weapons Division, China Lake, California. ATK will work in concert with NAWCWD to identify specific propulsion technologies to develop for integration into future missile systems. The work is expected to be completed by June 2013. The scope of the CA/FNC program is to develop technologies that will extend missile range, decrease time-to-target, improve end-game maneuverability, and improve the rocket motor's response to insensitive munitions (IM) stimuli. These improvements are initially oriented toward the 7-inch-diameter Advanced Medium Range Air-to-Air Missile (AMRAAM). August 2010 Page 4 Defense & Aerospace Companies, Volume l - North America Alliant Techsystems Inc GATR. In June 2009, Elbit Systems and Alliant Techsystems successfully conducted flight tests of the Guided Advanced Tactical Rocket (GATR). The laserdesignated guided flight, launched from a standard 2.75inch launcher, made direct impact on the target. Originally announced in July 2008, the GATR propulsion system is built by ATK with the guidance and control system built by Elbit Systems. In its tactical configuration, GATR will incorporate an insensitive munitions rocket motor and a family of IM warheads to include blast/fragmentation and penetration. GATR is a low-cost, precision strike weapon that minimizes collateral damage, while providing standoff deployment against a wide array of target sets. The system is compatible with existing 2.75-inch (70mm) launcher hardware. Trent XWB Fan Cases. In January 2009, ATK signed a contract valued in excess of $200 million with Rolls-Royce to produce composite aft fan cases for the new Trent XWB engine. The Rolls-Royce Trent XWB is the sole engine currently available to power the new Airbus A350 XWB family of aircraft. In addition to fabricating the aft fan cases, ATK will integrate additional components into the cases to deliver a finished aft case in support of Rolls-Royce's assembly of the full fan case module. The first ATK-fabricated Trent XWB aft fan case is scheduled for delivery to Rolls-Royce in late 2009. Initial ground testing of the Trent XWB is due to commence in 2010, with maiden flight on the new Airbus twinjet scheduled for 2012. ORS Sat-1. In December 2008, ATK, in partnership with the Goodrich ISR Systems Division, was awarded a contract to produce the first operational Air Force ORS satellite, designated ORS Sat-1. The contract was awarded by the Air Force Space and Missile Systems Center's Space Development and Test Wing. ATK will provide the spacecraft bus systems to Goodrich, who as the satellite's prime contractor, will integrate it with its payload. The bus design is based on ATK Space System's Responsive Space Modular Bus (RSMB) designed to meet the needs of the ORS office. ORS Sat-1 is planned for launch in 2010. MSST. In September 2008, ATK was awarded a $97 million contract for the design, development, integration, and test of the Multi-Stage Supersonic Target (MSST). With incentives, the value of the contract could reach $103 million. The system design and development phase of the program is expected to be completed by October 2012. The MSST will simulate a two-stage anti-ship cruise missile threat. It consists of a two-stage unmanned aerial target, a launcher, and associated support equipment. The U.S. Navy will use MSST to evaluate the operational effectiveness of weapons/combat systems against next-generation August 2010 surface-to-surface anti-ship missiles that cruise at subsonic speeds, initiate a separation event, and then make a supersonic dash to the intended target. Work will be performed in Sacramento and Woodland Hills, California; Plymouth, Minnesota; Elkton, Maryland; and Wichita, Kansas. BattleAxe. In March 2008, ATK was selected by the Air Force Research Laboratory (AFRL) to receive a $1.6 million contract to continue development of a small, lightweight warhead that will provide a unique battlefield solution to stop an enemy target. The goal of the BattleAxe program is to develop a multirole, miniature warhead that will destroy targets completely without causing major collateral damage to the surrounding areas. Potential targets for the BattleAxe include unarmored and armored vehicles and buildings in urban environments. Applications for this warhead include low-cost mini-cruise missiles and weaponized unmanned aerial vehicles, allowing greater protection for deployed troops in hostile environments. The BattleAxe program consists of three phases. ATK successfully completed Phase 1 and won the Phase 2 downselect to be the single provider. Orion CEV Solar Arrays. In January 2008, ATK was selected by Lockheed Martin Space Systems to develop and build UltraFlex solar arrays for NASA's next-generation Orion crew exploration vehicle. The value of the initial design and development contract is expected to exceed $50 million. Program management, design, engineering, analysis, manufacturing, assembly, and test work for the solar arrays will be conducted at ATK's facility in Goleta, California. Because the flight solar array system is expendable for each Orion mission, ATK expects continuous production through 2020 and beyond. Ares I First Stage. In August 2007, ATK received a $1.8 billion contract for the design, development, test, and evaluation (DDT&E) of the first stage of the agency's next-generation human space flight vehicle, the Ares I. The Ares I first stage is a single, five-segment reusable solid rocket booster (SRB) derived from the Space Shuttle program's reusable solid rocket motor. The multiyear development contract extends through June 2013 and includes flight tests beginning in 2009. Follow-on human flights are scheduled for no later than 2014, and production hardware for those flights will be developed under a separate contract expected after 2010. The first stage of the Ares I crew launch vehicle is being designed and developed by ATK at its facilities in Utah, with the assistance of a nationwide subcontractor team. Orion Launch Abort Motors. In July 2007, ATK received a $62.5 million contract from Orbital Sciences Corporation for the main abort motor of the NASA Defense & Aerospace Companies, Volume l - North America Page 5 Alliant Techsystems Inc Orion crew exploration vehicle Launch Abort System (LAS). Under the terms of the contract, ATK will design, develop, produce, test, and deliver the launch abort motor (LAM), the largest of three propulsion units integrated into the LAS. The contract includes four fullscale static test units and eight deliverable motors to Orbital for pathfinders, test flights, and program support. Orbital is subcontracted to Lockheed Martin, which is the prime contractor for Orion. Plant Expansion/Organization Update ATK Realigns. In March 2010, Alliant Techsystems realigned its business structure into four operating groups: Aerospace Systems, Armament Systems, Missile Products, and Security and Sporting. The newly formed Aerospace Systems group includes the Space Systems group and the Aerospace Structures business of Mission Systems; Mission Systems has been renamed Missile Products to more accurately reflect its focus; the new Security and Sporting group handles ammunition and accessories for sporting, military, personal security, and law enforcement applications; and Armament Systems has absorbed ATK's precision munitions capability. New Energy Research Facility. In January 2010, Alliant Techsystems opened its new Center for Energy and Aerospace Innovation at its Ronkonkoma, New York, facility. CEAI will serve as an ATK focal point for applying the company's expertise into potential technologies for the energy industry. The CEAI is located within ATK's General Applied Science Laboratories (GASL), which is an ATK research and test facility. Manufacturing Center will expand ATK's capacity to produce lightweight composite aircraft parts for the F-35 Joint Strike Fighter and other high performance military applications. Launch Systems and Space Systems Combined. In June 2008, ATK combined its Launch Systems and Space Systems groups into a single business. The company said the new organization is a natural alignment of its space-related businesses to deliver increased operating efficiencies while creating a broader customer base for ATK's technology portfolio. Carl Marchetto, current president of the company's Space Systems group, will lead the new organization, which will retain the Space Systems name. ATK Space Systems includes the space operations of ATK's Mission Systems group. The group was to have been combined with the Information Systems and Geospatial businesses of MacDonald, Dettwiler & Associates upon completion of that acquisition. However that purchase was scuttled in May 2008 when Canada halted the deal. Mergers/Acquisitions/Divestitures Blackhawk Industries Acquired. In April 2010, Alliant Techsystems acquired Blackhawk Industries Products Group Unlimited, LLC, a provider of tactical gear. The acquisition of Blackhawk, combined with the recent acquisition of Eagle Industries, strengthens ATK's position in tactical accessories and equipment for domestic and international military, law enforcement, security, and sport enthusiast markets. Terms of the agreement were not disclosed. Goleta Facility Expanded. In October 2009, ATK broke ground on a 25,000 square foot expansion of the company's facility in Goleta, California. The expanded operations will support NASA's human space flight program, as well as global weather satellites and possible future spacecraft missions. The facility currently has 70,000 square feet of production, engineering, and office space used primarily to design and build advanced solar arrays and lightweight space deployables. Eagle Industries Acquired. In March 2009, Alliant Techsystems acquired Eagle Industries as part of an effort to expand its position in the domestic and international tactical accessories markets serving military and law enforcement customers. Eagle Industries is a manufacturer of high-quality, individual operational nylon gear and equipment for military, homeland security, and law enforcement agencies. While terms of the agreement were not disclosed, the company expects the acquisition to add more than $80 million to FY10 revenues. Eagle Industries will become part of ATK's Armament Systems group. Composite Facilities Opened. In October 2008, ATK announced plans to open two new high-tech composite manufacturing facilities at the Allegany Ballistics Laboratory (ABL) in Rocket Center, West Virginia. The West Virginia Advanced Filament Winding Facility will be home to ATK's new composite rotor tube manufacturing operations in support of United States Enrichment Corporation Inc. The facility is designed to support USEC's American Centrifuge Uranium Enrichment Technology Program. The Mountain State Ceramic Matrix Composites MDA Acquisition Blocked. In May 2008, Alliant Techsystems was informed that the Canadian minister of industry had disapproved the sale of the Information Systems and Geospatial Services businesses of Canadian-based MacDonald, Dettwiler & Associates to ATK. Canadian Investment Review officials informed ATK that the Canadian objection related to potential extraterritorial application of U.S. export law. As a result, ATK took an approximately $6.6 million pre-tax charge ($3.9 million after taxes) for transaction-related expenses to be applied to the company's FY08 fourth- ©2010 August 2010 Page 6 Defense & Aerospace Companies, Volume l - North America Alliant Techsystems Inc quarter results. ATK first announced that it would acquire the unit in a deal valued at $1.3 billion in January 2008. Swales Aerospace Acquisition. In June 2007, Alliant Techsystems acquired Swales Aerospace, a provider of satellite components and subsystems, small spacecraft, and engineering services for NASA, Department of Defense, and commercial satellite customers. The Swales facility in Beltsville, Maryland, is now headquarters for the new ATK Space Division within the Mission Systems Group. The division is led by Mike Cerneck, the current CEO of Swales Aerospace. The new division will inherit the space structures and subsystems operations of ATK's current Space Systems and Sensors Division. The acquisition was first announced in April 2007. PSI Group Acquired. In September 2004, Alliant Techsystems completed its acquisition of the PSI Group for $165 million. The PSI Group is a leader in the design and manufacture of components for military and commercial space-based applications, including global positioning, navigation, and communication satellites; as well as satellite bus structures, struts, reflectors, and deployable mast booms. The company expects to increase its content on missions while expanding into new advanced space technology roles. The deal was first announced in July 2004. Mission Research Corporation Acquired. In March 2004, ATK acquired Mission Research Corporation (MRC), a leader in the development of advanced technologies that address emerging homeland defense and national security requirements. Core technical competencies include directed energy, electrooptical and infrared sensors, aircraft sensor integration, high-performance antennas and radomes, advanced signal processing, and specialized composites. ATK Mission Research's charter is to apply its talent and vision across ATK to create next-generation technologies that will transition from prototype development to production and fielding. Terms of the deal were not announced. Hypersonic Units Acquired. In November 2003, Alliant Techsystems acquired two hypersonic flight businesses – GASL and Micro Craft – from Allied Aerospace. The transaction adds to ATK's portfolio of leading-edge propulsion and airframe technologies for highly demanding aerospace and defense applications. GASL and Micro Craft are leaders in the development of hypervelocity and air-breathing systems for nextgeneration space vehicles, missiles, and projectiles. Terms of the deal were not disclosed. The two units had sales of about $40 million in 2002, and the purchase price was reportedly close to that. August 2010 ATK Acquires Composite Optics. In January 2003, Alliant Techsystems acquired Composite Optics Inc (COI), a leading supplier of advanced composite products for the space and aerospace markets. Terms of the transaction were not disclosed. Headquartered in San Diego, California, COI had annual sales of approximately $70 million and approximately 450 employees. The business remains in San Diego and has been integrated with ATK's existing composite structures operations. COI composite products include telescope structures, optical benches, mirrors, instrument housings, satellite structures, and antenna reflectors. Teaming/Competition/Joint Ventures American Ordnance. In October 2008, American Ordnance, a joint venture led by Day & Zimmermann and ATK, was awarded a contract with the U.S. Army to continue to operate and maintain the Iowa Army Ammunition Plant in Burlington, Iowa, and the Milan Army Ammunition Plant in Milan, Tennessee. The contract includes a 10-year base contract period and options to extend it an additional 15 years. Web site: http://www.aollc.biz/ FN Manufacturing. In September 2008, ATK and FN Manufacturing received a $53.4 million contract to produce Mk 19 Mod-3 Grenade Machine Guns. This will be the first crew-served weapon system manufactured by ATK, marking a significant milestone in the company's strategy to broaden its armament systems business. The contract also expands ATK's existing portfolio of medium-caliber gun systems beyond its chain guns. ATK will operate as systems integrator and perform barrel manufacture, gun assembly, and test operations; FNMI will provide gun subassemblies. Work on the Mk 19 will be performed by ATK at its facility in Mesa, Arizona. JATAS. In August 2008, ATK and BAE Systems teamed to compete for the upcoming U.S. Navy and Marine Corps Joint Allied Threat Awareness System program. JATAS is the next-generation missile warning system that will provide protection for rotary-wing aircraft from infrared guided missiles. ATK and BAE Systems have developed and fielded the AAR-47 and AAR-57 missile warning systems, respectively. In November 2009, ATK and BAE Systems were awarded a $32.2 million contract to develop the JATAS in competition with Lockheed Martin. Mechanical Technology. In November 2001, Alliant Techsystems and Mechanical Technology Inc signed a teaming agreement to explore military applications for direct methanol micro-fuel cells in the Defense & Aerospace Companies, Volume l - North America Page 7 Alliant Techsystems Inc U.S. Army's Objective Individual Combat Weapon (OICW). Nitrochemie. In August 2009, ATK and Rheinmetall Nitrochemie signed a new strategic agreement for the transfer of advanced propellant technologies from Nitrochemie to ATK. The technology transfer positions ATK as the exclusive North American provider of Extruded Impregnated (EI), Extruded Composite Lowsensitivity (ECL), Surface Coated Double Base (SCDB), and R-Type propellants. Previously, in September 2005, Alliant Techsystems and Swiss/ German propellant manufacturer Nitrochemie entered into a strategic alliance to market Nitrochemie's advanced gun propellants in North America. Together, the companies will pursue opportunities in tactical and training tank ammunition, artillery rounds, mortars, and both medium-caliber and small-caliber ammunition. The agreement provides ATK exclusive rights to market, sell, and produce this technology in North America. pyrotechnic ignition technology developed by the Norwegian company. The main potential application in the U.S. is the GAU-12 cannon in USMC AV-8B aircraft. Rheinmetall DeTec. There is a long history of successful cooperation on munitions programs between ATK and Rheinmetall. In 1979, Rheinmetall transferred the technology for a family of 120mm smoothbore tank ammunition for production in the U.S. for ultimate use in the M1A1 tank. Textron. In June 2000, Alliant Techsystems and Textron Systems formed a joint venture to develop and produce a tactical munition system as an alternative to anti-personnel land mines. In October 2002, the joint venture was awarded a $53.8 million contract to develop this system, dubbed Matrix. The Matrix remote munitions control system was deployed to Iraq in 2005. A follow-on system, called Spider, is under development by the partners. Raufoss. Alliant has an agreement with Raufoss covering medium-caliber ammunition using the fuzeless Financial Results/Corporate Statistics Alliant Techsystems posted sales of $4.81 billion for the year ended March 31, 2010, up almost 5 percent from the $4.58 billion reported in 2009. Net income rose to $278.9 million for the fiscal year, compared to $115.1 million in 2009. Debt/Equity ratio is calculated from the company's long-term debt divided by shareholder equity. The latest full-year statistics are reported below: Y/E March 31 (USD millions) Net Sales Percent Govt Net Income R&D Expenditures Backlog Debt/Equity Ratio 2005 2006 2007 2008 2009 2010 2,801.2 78.0 153.5 37.9 3,700.0 1.64 3,216.8 79.0 153.9 51.5 3,700.0 1.74 3,564.9 79.0 184.1 61.5 4,000.0 2.60 4,171.7 78.0 226.3 68.3 6,200.0 1.96 4,583.2 76.0 155.1 81.5 6,500.0 1.62 4,807.7 69.0 278.9 75.9 7,100.0 1.70 ©2010 August 2010 Page 8 Defense & Aerospace Companies, Volume l - North America Alliant Techsystems Inc Sales & Net Income Trends Alliant Techsystems Sales (USD billions) Net Income (USD millions) 5 300 250 4 200 3 150 2 100 1 50 0 0 06 07 08 Sales 09 10 Net Income Industry Segments A breakdown of the firm's sales by major business segment for the past three years is shown below: SALES (USD millions) Armament Systems Mission Systems Space Systems TOTAL OPERATING INCOME (USD millions) Armament Systems Mission Systems Space Systems Corporate TOTAL August 2010 2008 2009 2010 1,476.7 1,139.0 1,556.0 4,171.7 1,737.9 1,215.0 1,630.3 4,583.2 2,164.7 1,269.1 1,373.9 4,807.7 2008 2009 2010 139.6 129.0 193.0 NA 461.6 171.6 153.3 79.6 -20.0 384.5 257.0 136.8 138.1 -19.5 512.4 Defense & Aerospace Companies, Volume l - North America Page 9 Alliant Techsystems Inc 2009 - 2010 Sales by Segment Alliant Techsystems 45% 38% 27% 26% 29% 36% 2010 2009 Armament Mission Space Strategic Outlook As it profits from the current conflicts, ATK is investing in diversity for its future. The years of conflict in the Middle East have provided much work for Alliant Techsystems. The conflicts in Iraq and Afghanistan have kept the company's ammunition manufacturing running at an all-time high. Further, the demand has led to several modernization efforts at the company's government-owned, contractor-operated munitions facilities. Nevertheless, this situation is not expected to continue indefinitely, so ATK is using some of its profits to invest in its future. In 2007, the company acquired Swales Aerospace, a move that enhanced the company's space systems segment – so much so that Swales is now the headquarters of ATK's Space Systems division. The addition of Swales provides ATK with expertise in satellite components, subsystems, small spacecraft, and space-related engineering services. Recently, the company has focused on complementary diversification, moving into the tactical systems field. Through the acquisition of Eagle Industries in 2009 and Blackhawk Industries in 2010, ATK now has a foothold in the niche industry of tactical accessories for military, sporting, and law enforcement markets. These two operations now form the foundation of a new division within ATK, Security and Sporting. ATK is expected to continue to perform well for the foreseeable future. The company's management knows well the nature of the market it serves and is responding appropriately to changes expected in the near term. Prime Award Summary The following chart and table show the dollar volume of federal prime contract awards and rank (if applicable) relative to the top 100 companies receiving the largest dollar volume of prime contract awards for 2005 through 2009. For more information, refer to Appendix I, "Recipients of Federal Contract Awards." ©2010 August 2010 Page 10 Defense & Aerospace Companies, Volume l - North America Alliant Techsystems Inc Alliant Techsystems (USD millions) Rank Total DoD Awards 2005 2006 2007 2008 2009 27 1,818.3 34 1,692.7 33 1,972.3 33 2,198.3 28 2,524.0 Federal Contract Awards 2005 - 2009 Alliant Techsystems (USD millions) 3,000 2,524 2,198.3 2,500 2,000 1,818.3 1,972.3 1,692.7 1,500 1,000 500 0 05 06 07 08 09 Source: http://www.usaspending.gov/fpds/ Program Activity Some important aerospace and government programs currently under way at ATK are listed below. The following are the company's business interests: Defense Electronics Ordnance Systems Systems Integration Training Systems Electronics Programs AAR-47(V) The AAR-47(V) missile warning system is used on a variety of combat, transport, and utility aircraft. Initially configured for U.S. Navy and Marine Corps helicopters and slow-moving fixed-wing aircraft, it has been acquired for a number of U.S. Air Force and U.S. Army helicopters. August 2010 Night Vision Advanced Technology Combat Vehicles The U.S. Army's Night Vision Advanced Technology Combat Vehicles effort develops target acquisition sensor technology to meet the stringent fire-control requirements of combat vehicles. The primary objective of the Night Vision Combat Vehicles project is to improve the range and sensitivity necessary to support the target engagement capabilities of fire-control systems in ground vehicles, as well as improve infrared search and track technology for air-defense applications. Missile Programs AARGM In June 2003, Alliant Techsystems received a $222.6 million system development and demonstration contract from the U.S. Navy to develop the precision-strike Defense & Aerospace Companies, Volume l - North America Page 11 Alliant Techsystems Inc AGM-88E Advanced Anti-Radiation Guided Missile (AARGM). ATK is the prime contractor for the AARGM, a follow-on, retrofit program to the Navy's High-Speed Anti-Radiation Missile (HARM). AARGM is classified as a major defense acquisition program – accordingly, the SD&D award marks a significant milestone for ATK. For the first time, the company will operate as the prime contractor on a major missile system program. AARGM is a high-speed air-tosurface missile with a new multimode seeker that includes an integrated GPS/inertial navigation system, an advanced passive radar seeker, and an active millimeter wave radar terminal seeker. In 2009, the company was awarded a $55 million low-rate initial production contract from the U.S. Navy for the AARGM. Propulsion Systems Alliant Techsystems (formerly Hercules and Thiokol) has produced propulsion systems for NASA and all branches of Department of Defense services for 50 years. Programs that used, or are using, ATK propulsion systems and fuels include the following: Polaris, Poseidon, Trident, Pershing, Scout, Nike, Shrike, Sparrow, Phoenix, Honest John, Sidewinder, Pioneer, Telstar, Explorer, Vanguard, Tiros, Alto, Echo, and the Space Shuttle. In addition to propellant fuels and solid rocket engines, ATK was a pioneer in the development of materials and structures for large strategic rocket motors. ATK produces rocket motors and rocket motor components for the following tactical missiles: AGM-88A/B/C HARM AGM-114A/B HELLFIRE AIM-7 Sparrow AIM-9 Sidewinder AIM-9X Sidewinder AIM-54A/C/C+ Phoenix AIM-120A AMRAAM BGM-71 TOW FGM-77 DRAGON FGM-148 Javelin MIM-72 Chaparral MIM-104 Patriot Predator RIM-66/67 Standard Ordnance & Munitions Programs Government-Owned ContractorOperated (GOCO) Facilities Before World War II, the government recognized three important factors. First, private industry could not realistically support the massive production capabilities needed for potential armed conflict. Second, facilities built for consumer and industrial products could not, for the most part, be transitioned into ammunition plants. Third, the expertise to operate and manage highproduction plants resided in the private sector. The answer in 1940 was GOCO, in which government plants were designed, constructed, and operated with American industry providing the expertise and operating capabilities. Since that time, GOCO plants were supposed to alternate between production and standby, depending upon national needs. Most GOCO plants are installations under the U.S. Army Armament, Munitions and Chemical Command, or are Department of Energy nuclear fuel plants. Today, GOCO plants are competitive enterprises. They can enter into direct contracts with domestic and foreign military services and with approved contractors. The products manufactured at GOCO facilities establish stability and provide offsets to plant maintenance costs through rental fees. Entrenched GOCO operators usually win follow-on service contracts for periods of three to five years unless a major catastrophe occurs. The Company Operator (CO) profits are incentiverelated, ranging from 5 percent to perhaps 10 percent for outstanding results such as meeting schedules, maintaining quality, and improving safety records. Alliant has had plant accidents, but on balance, the safety record is good considering the products involved. There is no indication that the company's GOCO programs are at risk. Alliant's Armament Systems operates the following GOCO facilities: Radford Army Ammunition Plant, Radford, Virginia; Lake City Army Ammunition Plant, Independence, Missouri; and Allegany Ballistics Laboratory, Rocket Center, West Virginia. 25mm Ammunition Alliant was also involved in the manufacture of motors for the following strategic missile programs: LGM-30F/LGM-30G Minuteman MGM-118A Peacekeeper UGM-133A Trident II ©2010 Procurement of this caliber continues to increase as various new weapons are introduced into service use. The primary driver in this program has been the M242 Bushmaster cannon, which arms the Army's M2/M3 Bradley fighting vehicle, but the Marines use this weapon both for the Light Armored Vehicle-25 and in podded form for the AV-8B aircraft. August 2010 Page 12 Defense & Aerospace Companies, Volume l - North America Alliant Techsystems Inc 30mm Ammunition CBU-97/B Sensor Fuzed Weapon The two main uses for 30mm ammunition are for the GAU-8 on the A-10 attack aircraft and the related GPU-5 podded aircraft cannon, and for the 30mm M230 helicopter cannon on the AH-1S Cobra and the AH-64 Apache. This is an air-delivered submunitions dispenser and anti-tank submunition. The Tactical Munitions Dispenser SUU-64/B portion of this weapon is supplied by Alliant Techsystems. 120mm Tank Cannon Ammunition The CBU-98/B is an airfield demolition/area denial weapon. The SUU-64/B Tactical Munitions Dispenser portion of the weapon is produced by the Marquardt Company and Alliant Techsystems. Alliant Techsystems produces the following 120mm tank cannon ammunition rounds: M829. The M829 Armor Piercing Fin Stabilized Discarding Sabot-Tracer cartridge is a U.S.-designed round intended to be the primary armor-defeating round for the M256 tank cannon that arms the M1A1/A2 Abrams tank. M830. The M830 High Explosive Anti-TankMultipurpose-Tracer (HEAT-MP-T) round evolved directly from the German DM12A1 design that is utilized by the Rh 120 cannon on the Leopard 2 tank. It is a fixed, fin-stabilized, chemical energy, multipurpose round with an anti-armor and anti-personnel capability. M831. The M831 round is a practice HEAT-MP-T type. It has been designed to match the characteristics of the M830 round, but is intended for use in training. The projectile is completely inert. M865. The M865 Target Practice Cone Stabilized Discarding Sabot-Tracer is a target practice round. Under the correct circumstances, it will approximate the ballistic characteristics of the M829 round out to 3 kilometers. Smart Target Activated Fire and Forget (STAFF). This program is to develop a top-attack projectile using a tandem-shaped charge or flat cone-shaped charge warhead. Tank Extended Range Munition. This effort is to develop a round that will enable the M1A1/A2 to engage targets up to a distance of 8 kilometers. AT-4/M136 This is a man-portable anti-armor weapon. Alliant Techsystems is the licensed agent for the AT-4 for the Western Hemisphere. This weapon was originally developed by Saab-Bofors Dynamics, Sweden. Licensed production of this weapon is ongoing in Sweden. CBU-87/B Combined Effects Munitions The CBU-87/B is an anti-tank/anti-materiel/antipersonnel cluster bomb. Alliant Techsystems is the second source for the complete CBU-87/B. August 2010 CBU-98/B Direct Airfield Attack Gator BLU-91/B The Gator is an air-delivered anti-tank and antipersonnel submunition. Land Mines Alliant works on numerous land mine programs, including the following: Ground Emplaced Mine Scattering System. The Ground Emplaced Mine Scattering System is now fully fielded in European- and U.S.-based units. Volcano. The Volcano is a derivative of the Gator system developed by Alliant Techsystems. Modular Pack Mine System. The Modular Pack Mine System is intended for infantry protection. It was developed by Aerojet, with Alliant Techsystems responsible for systems integration and Hughes for the command electronics. M86 Pursuit Deterrent Munitions. The M86 Pursuit Deterrent Munitions is a derivative of the Area Denial Artillery Munitions (ADAM) anti-personnel mine. Alliant Techsystems is the prime contractor. Selectable Lightweight Attack Munitions (SLAM). This new lightweight mine is designed for use by U.S. Army Special Forces, Ranger, and similar units. It can be used as an anti-armor mine or as a demolition charge. M109 155mm Self-Propelled Howitzer The M109 is a tracked 155mm self-propelled artillery system. Alliant Techsystems produces the M109A6 Paladin's automatic fire control system (AFCS) and Modular Azimuth Positioning System. Space System Programs Ares I Ares I is the next-generation U.S. crew launch vehicle. Ares I is being developed to launch the Orion spacecraft, formerly known as the Crew Exploration Vehicle (CEV), for the Constellation Program. Defense & Aerospace Companies, Volume l - North America Page 13 Alliant Techsystems Inc Preliminary missions with Ares I will be to the International Space Station. Up to six crew members could be carried to the ISS, or the rocket could be launched unmanned to maximize cargo. Landing on the moon and Mars will be the goal of future missions. For lunar missions, Ares I will launch Orion with four crew members into a low-Earth orbit, where they will rendezvous with the Earth Departure Stage (EDS) of an Ares V. Once joined, the EDS will push Orion toward the moon. NASA has selected ATK Space Systems to be the prime contractor to design, develop, and produce the first-stage propulsion system for the Ares I Crew Launch Vehicle. The first stage is a single, fivesegment reusable solid rocket booster (SRB) derived from the Space Shuttle solid rocket motors developed and produced by ATK Launch Systems. In 2007, Alliant Techsystems received a $62.5 million contract from Orbital Sciences Corporation for the main abort motor of the NASA Orion crew exploration vehicle Launch Abort System (LAS). Ares V The Ares V is the unmanned heavy-lift Cargo Launch Vehicle (CaLV) to be used for NASA's Constellation Program, which seeks to send humans to the moon, Mars, and beyond. The rocket will lift an estimated 188 metric tons to low-Earth orbit. The upper stage of the Ares V is the Earth Departure Stage (EDS), which will house a Lunar Surface Access Module (LSAM). The EDS will rendezvous with Orion (the Crew Exploration Vehicle) in orbit and will take the craft out of Earth orbit. As with the Ares I, ATK Space Systems is developing the vehicle's five-segment reusable SRB. Atlas Launch Vehicles Atlas is a family of medium-lift expendable launch vehicles. Atlas ELVs are designed primarily to carry large communications satellites to geosynchronous transfer orbit. The Atlas IIAS features four Castor IVA solid-propellant strap-on rocket boosters. Black Brant Sounding Rockets Black Brant suborbital vehicles are used to conduct upper-atmospheric research, microgravity research, and training and testing as a ballistic missile target. Produced by Bristol Aerospace, ATK provides the rocket's Castor 4B & Star 27 motors. Delta II The Delta II is a medium-lift expendable launch vehicle designed to carry medium-size payloads up to 5,039 kilograms into low-Earth orbit, and up to 1,819 kilograms into geosynchronous transfer orbit. Alliant ©2010 Techsystems provides several components including Composite Thermal Shields; RS-68 Nozzle; Interstages, Centerbodies, Aeroskirts, Payload Adapters & Fairings, Nose Cones, Centaur Interstage A, and the Second Stage Titanium Fuel Tank. EELV The evolved expendable launch vehicle (EELV) is a new class of rocket for medium and heavy payloads. Boeing and Lockheed Martin Astronautics are involved in EELV pre-engineering and manufacturing development. Additional Boeing EELV contractors include Alliant Techsystems. Pegasus XL Jointly produced by Orbital Sciences Corp (OSC) and ATK, Pegasus is a winged space booster designed for launch from any large transport aircraft. ATK performed structural development of Pegasus, developing the two-piece composite payload fairing. In designing the aluminum saddle that attaches the wing to the booster body, ATK borrowed the design used for the SRAM II short-range attack missile. Space Shuttle The Space Shuttle is a manned, reusable launch vehicle. ATK Launch Systems produces the Redesigned Solid Rocket Motors (RSRMs). ATK Launch Systems is also a team member and holds about 11 percent of the work content on the Lockheed Shuttle Processing. The processing contract covers most of the work necessary to assemble, launch, retrieve, and refurbish reusable systems and parts of the Shuttle program. The Space Shuttle program is nearing completion, with the last flight scheduled for the end of 2010. Taurus Taurus is a four-stage, solid-propellant expendable launch vehicle. Taurus is a hybrid booster, combining the new Castor 120 solid rocket first stage with the three stages of the OSC Pegasus air-launched winged booster produced by Alliant. OSC launched its first Taurus vehicle in March 1994. Unmanned Vehicles Programs Model 324 Scarab The Scarab is a high-speed, long-range, remotely piloted vehicle. The Model 324 uses a Teledyne 373-8C with 970 pounds of sea-level static thrust. The engine is aided on takeoff by a modified AGM-84 Harpoon booster produced by ATK Launch Systems. August 2010 Page 14 Defense & Aerospace Companies, Volume l - North America Alliant Techsystems Inc U.S. Contract Awards Below is a listing of major contracts awarded to Alliant from the U.S. government in the past two years (contracts as of press date). Date 2008 1/4/08 1/23/08 Award (USD millions) Contract # Description 17.3 52.2 DAAA09-99-D-0016 DAAA09-99-D-0016 1/30/08 6.5 DAAA09-99-D-0016 1/31/08 11.7 FA8681-06-C-009 2/1/08 2/1/08 29.2 6.8 DAAA09-03-E-0001 DAAA09-99-D-0016 2/19/08 43.7 W15QKN-07-C-0085 2/20/08 2/25/08 6.9 38.9 W52P1J-07-C-0035 W52P1J-08-C-0011 2/27/08 2/29/08 24.3 21.0 DAAA09-99-D-0016 DAAA09-99-D-0016 2/29/08 13.5 DAAA09-99-D-0016 3/3/08 67.7 DAAA09-99-D-0016 3/27/08 3/27/08 85.9 43.2 DAAA09-99-D-0016 DAAA09-99-D-0016 3/27/08 3/27/08 88.2 46.2 DAAA09-99-D-0016 DAAA09-99-D-0016 3/27/08 3/28/08 3/31/08 31.6 8.7 37.5 DAAA09-99-D-0016 FA8681-08-C-0174 N00019-06-G-0014 3/31/08 9.2 FA8626-06-C-2060 4/28/08 6.1 DAA09 -02-G-0010 4/28/08 5/5/08 10.7 17.0 DAAA09-99-D-0016 DAAA09-99-D-0016 5/5/08 5/6/08 5/14/08 11.9 49.7 16.4 DAAA09-99-D-0016 DAAA09-99-D-0016 N00019-06-C-0107 5.56mm AA33 small caliber ammunition. Modernization & enhancement of ammunition production capabilities at the Lake City Army Ammunition Plant. Small caliber ammunition items: 7.62mm ALL, A151 & A222. DSU-33D/B is a nose-mounted sensor used on M117 & Mk 80 series general-purpose bombs & the Joint Direct Attack Munition (JDAM). Modernization effort at Radford Army Ammunition Plant. Modernizing & enhancing manufacturing capability for the production of ammunition. 7,560 M829A 120mm armor-piercing, fin-stabilized, and discarding Sabot-Tracer cartridges. 30mm ammunition. M865 (target practice, cone stabilized, discarding SabotTracer) 120mm cartridges and 15,000 M1002 (target practice, multipurpose Tracer P-T) cartridges. Procurement of ammunition. Small caliber ammunition items; total quantity awarded is 47,855,400 rounds. Small caliber ammunition items; total quantity awarded is 27,779,760 rounds. Small caliber ammunition items; total quantity awarded is 304,995,920 rounds. 206,714,800 rounds of small caliber ammunition. Modernizing & enhancing manufacturing capability of ammunition at the Lake City Army Ammunition Plant. 169,467,800 rounds of small caliber ammunition. Modernizing & enhancing manufacturing capability for the production of 5.56mm, 7.62mm & .50-caliber ammunition. 146,704,980 rounds of small caliber ammunition. Hard target void sensing fuze (HTVSF). Modify the AAR-47 missile warning systems in order to improve probability of detection in operational environments. Procure multiple Common Munitions Built-In-Test Reprogrammable Equipment (CAMBRE) Plus units & modify CMBRE units to a CMBRE Plus configuration. M1 multi-perforated propellant & M67 propelling charge program. Small caliber ammunition. Modernizing & enhancing manufacturing capability for the production of 5.56 mm green ammunition. Small caliber ammunition. Small caliber ammunition. AAR-47(V)2 missile approach warning set hardware weapons replacement assemblies. August 2010 Defense & Aerospace Companies, Volume l - North America Page 15 Alliant Techsystems Inc Date 5/28/08 Award (USD millions) 9.9 5/30/08 6/11/08 7/18/08 7/23/08 7/31/08 8.1 6.8 7.6 10.6 5.6 DAAA09-99-D-0016 W52P1J-05-C-0072 W15QKN-08-C-0473 DAAA09-99-D-0016 FA8626-06-C-2060 8/22/08 8/22/08 96.8 63.0 N00019-08-C-0058 DAAA09-03-E-0001 8/26/08 6.8 DAAA09-99-D-0016 8/29/08 9/12/08 31.4 9.4 DAAA09-03-E-0001 DAAA09-99-D-0016 9/25/08 5.7 DAAA09-99-D-0016 9/25/08 9/29/08 9/29/08 14.8 10.3 10.5 N00019-06-G-0014 DAAA09-03-E-0001 W15QKN-08-C-0529 9/30/08 14.8 DAAA09-99-D-0016 9/30/08 8.5 DAAA09-99-D-0016 9/30/08 7.8 DAAA09-99-D-0016 10/1/08 12.8 DAAA09-02-G-0010 10/2/08 10/2/08 53.5 70.4 W915QK-08-D-0460 DAAA09-99-D-0016 10/20/08 5.5 DAAA09-99-D-0016 10/22/08 8.3 HQ0006-08-C-0045 10/22/08 26.1 FA9101-09-C-0002 10/24/08 12/8/08 18.1 86.7 DAAA09-03-E-0001 W52P1J-09-C-0007 12/19/08 53.4 W52P1J-08-C-0011 12/23/08 55.1 N00019-09-C-0026 12/29/08 49.2 DAAA09-00-D-0016 2009 2/2/09 2/2/09 7.1 29.7 DAAA09-03-E-0001 W15QKN-07-C-0085 Modernization effort at Radford Army Ammunition Plant. 3,240 M829A3 120mm Armor Piercing, Fin Stabilized, Discarding Sabot-Tracer Cartridges. ©2010 August 2010 Contract # N00174-08-D-0009 Description Asset development, support for process development, facility & equipment design, and procurement & prove out. Small caliber ammunition. 20mm cartridges. M1028 canister cartridge. Small caliber ammunition. 149 common munitions built-in test reprogramming equipment air-to-air auxilliary data units & 20 W-17 cables. Multi-Stage Supersonic Target (MSST). Nitric acid concentrator/sulfuric acid concentrator balance of design, construction, and prove out. Small caliber ammunition: cartridge 5.6mm, Ball LFS, M855, AA45. Modernization effort at Radford Army Ammunition Plant. Execution of economics price adjustment (EPA) for cooper & total plant volume discount. Execution of economics price adjustment (EPA) for cooper & total plant volume discount. Logistics support for the AAR-47 B(V)2. Modernization effort at Radford Army Ammunition Plant. Excalibur 155mm Increment IB unitary warhead M982E1 precision enhancement projectiles. Execution of EPA for cooper & total plant volume discount. Execution of EPA for cooper & total plant volume discount. Execution of EPA for cooper & total plant volume discount. BS-NACO propellant supporting the 5-inch 54 propelling charge. Mk 19 grenade machine guns. Execution of EPA for cooper & total plant volume discount. M855 green ammunition Phase IIIA that develops a production capability of 6 million cartridges per month. Designing, fabricating & testing components as a risk reduction program for Future Unitary Kill Vehicle Divert & Attitude Control Systems. Design, fabricate, install, and test the Space Threat Assessment Testbed (STAT) system to meet all specification requirements. Modernization effort at Radford Army Ammunition Plant. Various nonstandard ammunition for the Afghanistan National Army & Afghanistan National Police. FORM865 (target practice cone stabilized discarding Sabot-Tracer) cartridges. Low-rate initial production of AGM-88E Advanced AntiRadiation Guided Missiles. Modernization & upgrade of small caliber production equipment at the Lake City Army Ammunition Plant. Page 16 Defense & Aerospace Companies, Volume l - North America Alliant Techsystems Inc Date 2/4/09 Award (USD millions) 5.6 Contract # W15QKN-06-C-0130 2/6/09 7.0 N00164-05-C-0026 2/13/09 7.3 DAAA09-99-D-0016 3/2/09 9.9 N00104-09-C-K065 4/8/09 4/21/09 5/7/09 18.5 20.3 9.4 DAAA09-03-E-0001 W52P1J-09-D-0017 N68936-09-C-0032 5/8/09 10.2 FA8626-06-C-2060 5/11/09 22.4 FA8219-09-C-0003 5/21/09 50.0 N00014-09-D-0699 6/8/09 6.0 FA8681-06-C-0009 6/29/09 5.8 W15QKN-06-C-0130 7/9/09 7/10/09 22.5 5.7 W52P1J-09-D-0017 W15QKN-07-C-0095 8/19/09 5.8 W52P1J-09-G-0002 8/26/09 8/27/09 49.0 6.3 FA8213-09-D-0002 N00019-07-C-0036 9/14/09 9/22/09 9/23/09 9/25/09 9.7 49.4 7.3 32.2 W52P1J-09-C-0045 N00019-09-C-0037 W52P1J-09-D-0017 N00019-09-C-0100 9/30/09 30.8 N00024-09-E-4415 9/30/09 105.8 W52P1J-09-C-0060 10/1/09 10/5/09 10/5/09 20.1 5.9 21.1 FA8629-09-C-2442 DAAA09-03-E-0001 W91CRB-09-C-0112 11/25/09 41.1 W15QKN-06-C-0154 * August 2010 Description 155mm M549 system development & demonstration award. 58,000 each Mk 266 30mm High Explosive IncendiaryTrace (HEI-T) ammunition. Basic mechanical & electrical refurbishment to accommodate the green bullet design. Mechanical (laser) actuated initiators used on the Joint Primary Aircraft Training System (JPATS) aircraft. Support operations at Radford Army Ammunition Plant. Trinitrotoluene, Type I, Flake quantity: 4,717,432. Research & development efforts for solid rocket propulsion technology. 21 common munitions built-in test reprogramming equipment. One Stage III motor case for hydro-testing, One Stage III for motor for static testing, one Stage III inert motor simulator, one Stage III flight test motors. The Integrated Topside (INTOP) Program encompasses the technology development & system development & demonstration phases of a Navy acquisition program. Provide the DSU-33D/B nose-mounted sensor used on M117 & Mk 80 series General-Purpose Bombs & the Joint Direct Attack Munition. 155mm M549 system development & demonstration award. Trinitrotoluene, Type I, Flake quantity: 5,225,13. M11155A1 Enhanced Portable Inductive Artillery Fuze Setter (EPIAFS) system. M1SP-M1MP propellant, end use: M67 propelling charge. MJU-62/B infrared flare countermeasure. 555 Mk 36 Mod 13 spare rocket motors for the AIM-9M missile carried on F/A-18E/F aircraft. M228 practice grenade fuze. AAR-47 missile warning system components. Trinitrotoluene, Type I, Flake quantity: 1,703,243. Technology demonstration phase for the Joint & Allied Threat Awareness System for the design, development & demonstration of a prototype for an advanced missile warning system. Restoration projects in support of the Navy's continuing restoration program at Allegany Ballistics Laboratory. Non-standard ammunition for the government of Afghanistan & U.S. Forces. 200,000 rounds of 30mm ammunition. Modernization effort at Radford Army Ammunition Plant. 10,697 non-standard weapons, 66,874 AK-47 magazines & 16,050 spare parts. 70 Spider XM-7 networked munitions. * *