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With that said, I'll turn the call to you, Mark.Mark DeYoung Okay, Steve, thank you. Good morning everyone and thanks for joining us today. This morning we will be discussing our third quarter results. We will also talk about a shift in our capital deployment strategy and we want to introduce our move to a streamlined operating structure in our next fiscal year which is our fiscal year 2013. In addition, we have announced and you’ve probably where Neal Cohen will serve as ATK’s Executive Vice President and Chief Financial Officer beginning on February 13th. Tom Sexton has served as our Interim CFO. I want to thank Tom for all he has done to ensure a seamless transition during this period. I worked with Tom for many years. He never disappoints, he is a very valuable member of our management team, he did a great job and I look forward to his continued contributions to the company as our Controller. First, we recently reached a tentative agreement to settle a longstanding claim against the company. This claim originated from events that occurred prior to our acquisition of Thiokol in 2001. It’s been carried and disclosed for obviously many years. Getting this litigation behind us was the right thing to do for the company and for our shareholders. A new share repurchase authorization has been approved by the Board of Directors of ATK. We’ve been authorized to repurchase up to $200 million worth of ATK common stock over the next two years as part of our balance capital deployment strategy. Given our liquidity and cash flow, we have the capacity for a range of capital deployment initiatives. Despite the federal budget challenges facing ATK and the defense industry, the foundation of our core businesses remained strong. We received a draft of the Undefinitized Contract Action for the space launch system which establishes a stable base for our Solid Rocket Motor business.
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.
We are determined, not only to support the initiatives articulated by the Secretary Panetta, but we believe we have incorporated priorities and values into this company’s operating and business cultures that will lead to our continued success.The success of our Commercial Ammunition and Accessories business has been a testament to ATK’s ability to respond to customer demands and do so on a variety of markets. Our strategy is working in this group. We continue to gain market share. Even though some customers have migrated to lower-priced offerings, we again achieved outstanding year-over-year sales in the third quarter. Read the rest of this transcript for free on seekingalpha.com