Alliant Techsystems Inc., the largest supplier of M-16 rifle bullets to the U.S. Army, said third-quarter earnings rose 14 percent on higher ammunition sales, beating analysts' estimates, and the company raised its full-year forecast.

Net income rose to $58.3 million, or $1.65 a share, from $51.2 million, or $1.53, a year earlier, Alliant, based in Edina, Minn., said Thursday. Sales climbed 17 percent to $1.05 billion in the three months ended Dec. 30.

Alliant has 4,585 employees in Utah at seven facilities. The company has quadrupled output of small caliber rounds since 2000 to meet demand for the war in Iraq and increased training of U.S. troops. Chief executive officer Daniel Murphy is preparing for that growth to slow as the war winds down by expanding sales of satellites, rockets and light-weight materials for aircraft.