NEW YORK (CNN/Money) - Shares of Alliant Techsystems Inc. tumbled Monday as investors worried that suppliers of the space shuttle would be hurt by the explosion of the Columbia Saturday.

The losses came even as Alliant said in a statement Monday it remains on track to meet the financial targets set before the explosion.

Shares of Alliant (ATK: down $6.06 to $48.30, Research, Estimates) lost about 10 percent in midday trading, while two larger shuttle contractors, Boeing Co. (BA: down $0.36 to $31.23, Research, Estimates) and Lockheed Martin Corp. (LMT: down $1.20 to $49.85, Research, Estimates), fell about 2 percent apiece.

Moog Inc. (MOG.A: down $0.40 to $31.50, Research, Estimates), another shuttle contractor, saw its shares slip less than 1 percent after it said it will have about a $2 million impact on 2003 revenue from the shuttle grounding but it expects the rest of its projected $13 million in shuttle-related contracts to be completed this year. The company has projected 2003 revenue of $760 million.

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Alliant has a greater percentage of its revenue tied to the shuttle program than other publicly traded shuttle contractors. Merrill Lynch analyst Byron Callan estimates that Alliant gets about $380 million in revenue from the shuttle, which would be about 18 percent of its total, and about 10 percent of its estimated profit.

"At this point, we think it is premature to make changes to our earnings estimates [for Alliant]," Callan wrote in a note to clients. He said there may be provisions in Alliant's contract with NASA to cover delays in launches, and it is not clear how long the shuttle program will remain grounded. Although he believes a year delay is a good starting point, Callan doesn't believe the program will be completely shut down during that grounding.

"NASA will need to be mindful of industrial base considerations, in particular the loss of skilled workers who might find employment in other fields if activity ceased on the program," he wrote.

Alliant purchased Thiokol Propulsion Corp. from Alcoa Inc. (AA: Research, Estimates) in 2001. That unit, which makes the solid fuel booster used to launch the shuttle, was the aerospace business of the former Morton Thiokol, the company that made the O-rings whose failure caused the Challenger space shuttle to explode in January 1986.

While Alliant may lose revenue from the grounding of the nation's shuttle fleet, it has other business that could see short-term gains if the United States goes to war with Iraq. Specifically, it makes smart bombs and ammunition, as well as motors for space launch vehicles such as the Trident II and the Delta II, which could see more launches due to the shuttle grounding.

Alliant Monday stood by the financial guidance it gave on Jan. 23, when the company raised its sales targets for the current fiscal year to $2.140 billion. In addition, Alliant said sales growth should be in the mid-single digits during the next fiscal year beginning in April.

"Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results, including unforeseen delays in NASA's Space Shuttle program," Alliant said in a statement.

Boeing has built space shuttles since acquiring the space business of Rockwell International in 1996. It also maintains the orbiter as part of a joint venture with fellow defense contractor Lockheed Martin called United Space Alliance, based in Houston.

Boeing also builds, tests and maintains the shuttle's main reusable liquid-fueled rockets.  

-- Reuters contributed to this report.