AAR Corp. (AIR) received a specialized shelters contract from the U.S. Army for $27 million.
The company will support the U .S. Army’s Standard Automotive Tool Set program by providing its versatile mobility solutions. AAR Corp.’s products enhance efficiencies and enable field repairs to support the U.S. Army Combat Service and other national priorities.
In mid-March, AAR Corp. posted encouraging results for the third quarter of fiscal year 2011. The company’s net income from continuing operations surged 74.3% to $18.3 million or 45 cents per share, beating the Zacks Consensus Estimate of 42 cents per share.
Consolidated sales grew 50% year over year to $451.0 million, driven by improvements in all business segments, except for Structures and Systems.
Earlier, AAR Corp. had added two new Sikorsky S-92 helicopters to its fleet, providing airlift services for the U.S. government. These new helicopters support a $450 million task order to provide super-heavy airlift services. AAR Airlift, a provider of intra-theater airlift, has capabilities that support a wide range of defense, security and humanitarian relief operations.
AAR Corp. purchases and leases aircraft and engines to its customers on an operating lease basis. The ability to re-lease or sell these assets on acceptable terms is subject to a number of factors that drive industry capacity, including new aircraft deliveries, availability of used aircraft and engines in the marketplace, competition, financial condition of the customers and the airline industry in general.
Based in Wood Dale, Illinois, AAR Corp. provides various products and services to the aviation and defense industries worldwide.
We currently maintain an Outperform recommendation on the stock.
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