ATK Receives $110 Million Contract for F-35 Lightning II Composite Components
Production Will More than Double from Three to Eight Ship Sets Per Month
ATK has Delivered 850 F-35 Wing Skin Components to Date
MINNEAPOLIS, May 3, 2011 /PRNewswire/ -- ATK (NYSE: ATK) announced today that it has received a $110 million contract from Lockheed Martin (NYSE: LMT) to produce composite components for low rate initial production (LRIP) Lots 5 through 9 of the F-35 Lightning II – Joint Strike Fighter. The contract includes production of multiple components through the LRIP 9 phase of the program.
Under the terms of the contract, ATK will use advanced hand lay-up processing techniques to manufacture upper fixed aft skins for both the carrier variant (CV) and short-take off/vertical landing (STOVL) variant, upper access covers on the CV and conventional take-off and landing (CTOL) variant, and the upper access center covers for the STOVL variant. Production will take place at ATK's Clearfield, Utah facility beginning in 2011 continuing through 2015.
"This contract award confirms our commitment to providing Lockheed Martin with the highest quality composite structures affordably and on time," said Joy de Lisser, Vice President and General Manager of the Aerospace Structures division of ATK Aerospace Systems.
ATK began F-35 production in October 2002 with a System Design and Development contract for 19 ship sets of the one-piece, 35-foot composite upper wing skin. The company has delivered over 850 wing skin components to date through LRIP Lot 4. During this contract the company will increase production rates from three ship sets per month to more than eight ship sets per month.
In addition to this contract award, ATK manufactures several other composite structures for the F-35, including the seven-piece upper wing skin, lower wing skins, engine nacelle skins, inlet ducts, and the upper wing strap using both automated fiber placement and hand lay-up techniques. ATK's composite manufacturing expertise has contributed to the F-35 since the development phase of the program.
The F-35 Lightning II is a 5th generation fighter, combining advanced stealth with fighter speed and agility, fully fused sensor information, network-enabled operations, advanced sustainment, and lower operational and support costs.
ATK is an industry leader in advanced composite structures and pioneered the automation of composite fabrication through the fiber placement process in the early 1980s. ATK operates 11 fiber-placement machines and proprietary production processes that shorten the manufacturing cycle, and produce extremely high quality, complex composite components with unmatched repeatability.
ATK is an aerospace, defense, and commercial products company with operations in 23 states, Puerto Rico, and internationally, and revenues of approximately $4.8 billion. News and information can be found on the Internet at www.atk.com.
Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those factors are: changes in governmental spending, budgetary policies and product sourcing strategies; the company's competitive environment; the terms and timing of awards and contracts; and economic conditions. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, please refer to ATK's most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.