National Presto Industries Inc. Reports Operating Results (10-K)

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Mar 16, 2011
National Presto Industries Inc. (NPK, Financial) filed Annual Report for the period ended 2010-12-31.

National Presto Indust. has a market cap of $750.1 million; its shares were traded at around $109.28 with and P/S ratio of 1.6. The dividend yield of National Presto Indust. stocks is 0.9%. National Presto Indust. had an annual average earning growth of 36.2% over the past 10 years. GuruFocus rated National Presto Indust. the business predictability rank of 2.5-star.

Highlight of Business Operations:

On April 25, 2005, AMTEC Corporation was awarded the high volume, five-year prime contract for management and production of the Army s 40mm Ammunition System. The Army selected AMTEC as one of two prime contractors responsible for supplying all requirements for 40mm practice and tactical ammunition for a period of five years. AMTEC was awarded the majority share of requirements, and the Army estimated the total for the two contract awards, if all of the options were fully exercised, to be $1.3 billion. AMTEC projects that its deliveries under the contract will exceed $667,000,000. Deliveries under the system program were $139,700,000 during 2010. On February 18, 2010, the Army awarded AMTEC a second five-year contract for the management and production of the 40mm Ammunition System. As in the original 5-year contract, AMTEC was awarded the majority share of the 40mm requirement. The first year requirements awarded to AMTEC under the new five-year contract exceeded $183,400,000. The actual and cumulative dollar volume with the Army over the remaining four years of the contract will be dependent upon military requirements and funding, as well as government procurement regulations and other factors controlled by the Army and the Department of Defense.

The contract backlog of the Defense segment was approximately $329,000,000, $274,000,000, and $265,000,000 at December 31, 2010, 2009, and 2008 respectively, net of intercompany sales. Backlog is defined as the value of orders from the customer less the amount of sales recognized against the orders. It is anticipated that the backlog will be performed during a 12 to 18-month period, after December 31, 2010.

In April 2005, AMTEC Corporation was selected as one of two prime contractors responsible for supplying all requirements for 40mm practice and tactical ammunition rounds for the Army s five year 40mm systems program. AMTEC projects that its deliveries to the Army over the life of the contract will exceed $667,000,000. Deliveries under the systems program were $139,700,000 during 2010. In February 2010 the Army awarded AMTEC a new contract for an additional five-year period. As in the original contract, AMTEC and one other prime contractor will be responsible for supplying all of the requirements for the 40mm family of ammunition rounds. The actual annual and cumulative dollar volume with the Army will be dependent on military requirements and funding.

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