Printer Friendly

ALLIANT TECHSYSTEMS NEGOTIATING SALE OF METRUM INFORMATION STORAGE

 ALLIANT TECHSYSTEMS NEGOTIATING SALE OF METRUM INFORMATION STORAGE
 MINNEAPOLIS, Sept. 25 /PRNewswire/ -- Alliant Techsystems (NYSE: ATK) said today that its board of directors has authorized management to pursue negotiations for the sale of Metrum Information Storage. The action follows the completion of a review of formal offers for the business.
 The sale is expected to close by the end of the company's third fiscal quarter, which ends Dec. 27, 1992.
 The company said it expects to receive cash and tax benefits of between $25 million and $30 million from the sale. Net cash proceeds from the sale will be used to repay outstanding debt as required by the company's loan agreements.
 The sale will not include land and buildings, which will be sold separately.
 Alliant Techsystems said that offers for Metrum Information Storage were lower than previously anticipated because of losses incurred by Metrum since the decision to divest the business in March. As a result, the company will incur a second-quarter after-tax loss from discontinued operations of approximately $15 million, consisting of losses from operations and losses related to the expected sale. Metrum's results have been accounted for as discontinued operations since March, when the company's board of directors authorized a plan for divestiture.
 The company noted that it expects significantly improved results from continuing operations for the second quarter as compared to the previous quarter. Alliant Techsystems' second quarter ends Sept. 27.
 Metrum Information Storage is headquartered in Littleton, Co. Principal business areas include precision instrumentation data storage products and systems, hard copy output devices, and instrumentation and testing services. Sales in fiscal year 1992 were $86.8 million.
 As previously announced, the decision by Alliant Techsystems to divest Metrum Information Storage reflects a strategic shift from Metrum's business focus from defense to the commercial market, which has reduced its synergy with Alliant Techsystem's core defense operations.
 Alliant Techsystems supplies high-quality defense and marine systems to the U.S. government and its allies. Sales from continuing operations for the fiscal year ended March 31, 1992, were $1.2 billion. The company is headquartered in Edina, Minn. Excluding Metrum, Alliant Techsystems employs 5,700 people throughout the United States.
 -0- 9/25/92
 /CONTACT: (Media) Rod Bitz, 612-939-2646 or Coleen Southwell, 612-939-2709 or (investors) Richard N. Jowett, 612-939-2777, all of Alliant Techsystems/
 (ATK) CO: Alliant Techsystems ST: Minnesota IN: ARO SU:


DS -- MN004 -- 3420 09/25/92 09:21 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 25, 1992
Words:401
Previous Article:U.S. BANCORP ANNOUNCES DIVESTITURE OF CORPORATE TRUST SERVICES
Next Article:DRYCLEANERS NOW BEING ASSAILED BY EMPTY ENVIRONMENTAL THEORIES AND CONJECTURE, IFI SAYS
Topics:


Related Articles
ALLIANT TECHSYSTEMS REVIEWS POTENTIAL NEW BUSINESS AREA AND PERFORMANCE EXPECTATIONS WITH ANALYSTS AND SHAREHOLDERS
ALLIANT TECHSYSTEMS REPORTS THIRD-QUARTER NET INCOME OF 80 CENTS PER SHARE; EXPECTS SALES TO SHIFT TO FOURTH QUARTER
ALLIANT TECHSYSTEMS TO REDUCE WORKFORCE
ALLIANT TECHSYSTEMS EXPECTS RECORD SALES AND STRONG CASH FLOW IN FOURTH QUARTER
ALLIANT TECHSYSTEMS EVALUATING STRATEGIC OPTIONS FOR INFORMATION STORAGE SEGMENT
ALLIANT TECHSYSTEMS REPORTS STRONG GROWTH IN INCOME FOR FISCAL YEAR 1992
ALLIANT TECHSYSTEMS SIGNS LETTER OF INTENT FOR SALE OF METRUM INFORMATION STORAGE
ALLIANT TECHSYSTEMS REPORTS SECOND QUARTER INCOME FROM CONTINUING OPERATIONS OF $10.2 MILLION
ALLIANT TECHSYSTEMS COMPLETES SALE OF METRUM INFORMATION STORAGE
RESTRUCTURING CHARGES, LOSSES FROM DISCONTINUED OPERATIONS, ACCOUNTING METHOD CHANGE RESULT IN LOSSES FOR ALLIANT TECHSYSTEMS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters