We are performing on our Airbus A350 program, third quarter results were in line with our expectations, we’re successfully transitioning from prototype to production in our Aerospace Composites business and we see long-term growth in this business from the A350 production ramp up.
We submitted a proposal on January 3rd for the operation in Lake City Army Ammunition Plant. We expect the army to award the contract in the fall of this year. Our expertise in operating this facility has been widely acknowledged over the years. We are confident that we have prepared a winning proposal for this important competition. We are entering production on a number of new and innovative weapon programs.
During the quarter we started to work on the lot pre-buy of AARGM and we expect the program to achieve initial operating capability this spring. We recently completed the sixth consecutive successful flight test of this new system. So that’s a great milestone for us.
The XM25, our Precision Motor Solution and the Precision Guidance Kit all provide the war fighter with new and advanced capabilities. I am encouraged by the positive response from army leaders on the capability and performance of these new systems. These innovative products are the types of solutions that will become even more important in our emerging DoD environment.While the government 2013 Defense Budget will not be released in detail until February 13th as you know. ATK’s focus and outlook is consistent with Secretary Panetta’s statements last week. The Secretary made clear that while we will have a smaller force, it will be well trained, it will be armed more lethal and it will be battle hardened. ATK is well positioned to support the Secretary’s vision for this force. Secretary Panetta also spoke to the imperative of greater efficiency in the department and ATK is actively working with many segments within DoD but also within NASA to identify opportunities to improve efficiency and reduce cost.
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