Business

New Alliant CEO is 25-year company veteran

Mark DeYoung headed the Armament Systems group and replaces Dan Murphy, who retired.

By David Phelps

February 5, 2010 at 6:04AM

The Ares I test rocket on Pad 39B at Cape Canaveral late last year. Alliant Tech plays a key role in developing the rocket, which is part of the next generation of space vehicles. (Associated Press/The Minnesota Star Tribune)

Alliant Techsystems on Thursday named Mark DeYoung chief executive officer. He replaces former chairman and CEO Dan Murphy, who retired in November.

DeYoung is a 25-year veteran of Alliant and its predecessor companies. He previously was president of Alliant's Armament Systems group. During his tenure, revenue for the group rose from $600 million in 2003 to a projected $2.1 billion for fiscal 2010, making the group Alliant's largest business division.

DeYoung, 51, began his career with Hercules Aerospace Co., which Alliant acquired in 1995.

Board Chairman Ron Fogleman said DeYoung was selected from a strong batch of internal and external candidates for his experience across Alliant's core businesses and his strategic vision.

DeYoung is a graduate of Weber State University in Ogden, Utah, and received an MBA from Westminster College in Salt Lake City.

Profit shoots up 28 percent

The announcement about DeYoung coincided with Alliant's third-quarter earnings report in which sales rose 3 percent to $1.1 billion and net income jumped 28 percent to $78 million.

Based on those results, the Eden Prairie-based company increased its earnings-per-share guidance for the remainder of the fiscal year to $8.80 to $8.90, from $8.60 to $8.75.

Fogleman said the company faces "some challenges" but said expansion into new markets and in its existing international operations poses a bright future.

One of those challenges is the future of the space program. Alliant plays a key role in developing the Ares I rockets, a component of the next generation of space vehicles to return astronauts to the moon. President Obama, in his 2011 budget for the space agency NASA, has proposed elimination of the moon mission.

"We expect significant debate on this issue in the months to come," John Shroyer, chief financial officer, said in a conference call with Wall Street analysts.

Alliant's space systems division accounts for about one third of the company's estimated 2010 sales of $4.8 billion.

The company said sales in its commercial sales division, which include ammunition and airplane parts, remain strong but forecast overall flatness for 2011.

Alliant shares closed at $78.35 Thursday after declining $3.28.

David Phelps • 612-673-7269

Alliant Techsystems Thursday named Mark DeYoung as its chief executive officer. He replaces former chairman and CEO Dan Murphy who retired in November. DeYoung is a 25-year veteran of Alliant and its predecessor companies. He previously was president of Alliant's Armament Systems group. During his tenure revenue for the group rose from $600 million in 2003 to a projected $2.1 billion for fiscal 2010 making the group Alliant's largest business division. DeYoung, 51, began his career with Hercules Aerospace Company, which Alliant acquired in 1995. (Star Tribune/The Minnesota Star Tribune)