Operating profit in the second quarter increased approximately $38 million. On an adjusted basis, it increased $46 million. Improved operating profit was primarily driven by both the Sporting and Aerospace Groups, and lower pension expense, partially offset by lower operating profit in the Defense Group.
Net income for the quarter increased 42 percent to $93 million compared to $65 million in the prior-year quarter. On an adjusted basis, net income was $91 million compared to $61 million in the prior-year period. Fully diluted earnings per share were $2.86 compared to $2.00 in the prior-year period. On an adjusted basis, EPS was $2.82 compared to $1.88 in the prior-year period. The increases in adjusted net income and adjusted EPS are due to higher operating profit and lower interest expense.
During the quarter, ATK reported strong, year-over-year organic growth in the Sporting Group, while successfully executing the Savage integration plan. On Nov. 1, 2013, ATK also completed the acquisition of Bushnell Group Holdings, Inc. (Bushnell).
The acquisition will be integrated into ATK's Sporting Group and will increase the company's presence in higher-growth shooting sports and outdoor markets. With the addition of Bushnell and Savage, the Sporting Group will account for approximately 45 percent of total ATK revenue, and across the enterprise, commercial and international sales will account for approximately 50 percent of ATK total revenue.
In addition, ATK recorded a number of new program wins and program milestones in the second quarter. ATK secured a strategic commercial launch contract from Orbital Sciences to provide large-diameter propulsion for the Air Launch Vehicle that Orbital is designing for Stratolaunch Systems Corporation.
ATK also completed delivery of the James Webb Space Telescope's primary mirror backplane support structure. This was a critical milestone for the world's most powerful space telescope. ATK delivered the 100th Advanced Anti-Radiation Guided Missile to the U.S. Navy and received a production contract from the U.S. Army for the Precision Guidance Kit, demonstrating innovative and affordable technology solutions for current and emerging customer needs.
"We are delivering year-over-year revenue and profit growth that is aligned with our vision and strategy of strengthening our leadership positions," said Mark DeYoung, ATK President and Chief Executive Officer.
"ATK continues to win new business that supports our core capabilities, and we are delivering significant value to our customers. With our recent acquisition of Bushnell, ATK's comprehensive product offering will position us for future expansion into new and adjacent outdoor recreation markets. Our objective is to efficiently deliver quality products to an array of aerospace, defense and commercial customers, resulting in superior shareholder returns and a healthy balance sheet."
| On 18th Oct 2021
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