We successfully completed transition of operations at the Radford Army Ammunition Plant, and we supported the Army in every aspect of that transition, including delivering increased quantities of product to our customers in the last quarter. As we completed our production contracts during the transition, the group achieved higher sales, improved efficiencies and as a result, higher profit rates. As a side note, our New River Energetics business, that manufactures both gunpowder and medium-caliber ammunition, will continue to operate at the Radford facility.
We recently completed the transition of the Army's enhanced performance round or the M855A1 to modernize high-speed production lines, improving our ability to meet volume demands and reducing the cost of this new round. In terms of the Lake City competition, we still expect the Army will make an award this fall.
The Precision Guidance Kit, which we refer to as PGK, continues to perform well, and we're approaching the Milestone C decision on the program. Passing Milestone C will allow us to make this affordable and innovative guided artillery capability available to international allies. We anticipate the Navy will declare our AARGM ready for initial operational capability and potentially a water production contract later this year. This is a new missile that provides a much-needed capability to DoD, and it will establish a new growth platform for the Defense Group.
In addition, our third stage rocket motor contributed to 2 recent successful ballistic missile defense tests and the Joint Allied Threat Awareness System, or you may know it as JTAS, that team recently reached a significant milestone on the program, and we conducted a very successful critical design review.Read the rest of this transcript for free on seekingalpha.com
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