Alliant Techsystems Inc. fell the most since September after KeyBanc Capital Markets Inc. downgraded the company and cut revenue estimates on concerns over defense spending cuts next year.
The stock fell as much as 5.1 percent, the biggest decline since Sept. 21, to $58.19 in New York Stock Exchange composite trading after Cleveland-based KeyBanc cut the ammunition supplier to "hold" from "buy." The shares were down 2.0 percent to $59.32 at 11:24 a.m.
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"We view the pending release of the FY13 U.S. Defense budget as a negative near-term catalyst that, when coupled with increasing competition, lower funding levels, troop drawdowns and force structure cuts has the potential to pressure future period revenue and earnings," Cleveland-based KeyBanc said in a note to investors today.
Bloomberg News reported yesterday that Arlington, Virginia- based ATK, as the company is known, lost a U.S. Army contract to operate the Radford Army Ammunition Plant near Blacksburg, Virginia. London-based BAE Systems Plc won the bid, which was valued in May as high as $850 million over 10 years.
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