AAR reports record 2012 sales on strong 4Q return
WOOD DALE — Aircraft maintenance and equipment provider AAR Corp. reported a record $2.1 billion in sales for fiscal year 2012 thanks primarily to a strong showing from its commercial air sector.
Sales for the fiscal year were up 14.4 percent over the prior year, and net income attributable to AAR was $67.7 million, or $1.65 per diluted share, compared with sales of $1.8 billion, net income attributable to AAR of $69.8 million and diluted earnings per share of $1.73 in the prior fiscal year, the company said in a statement.
Fourth quarter sales were $563.3 million and diluted earnings per share were $0.45 before the effects of special items and $0.32 after the effects of the special items. For the fourth quarter of last fiscal year, the AAR reported sales of $487.8 million and $0.52 diluted earnings per share.
Commercial sales increased 48.5 percent compared to the fourth quarter of last year and 32.4 percent in fiscal 2012 compared to fiscal 2011. Fourth quarter sales growth was primarily due to strength in AAR's Aviation Supply Chain and Maintenance Repair and Overhaul segments. The balance of the commercial sales growth came primarily from the newly acquired businesses, Telair and Nordisk, which were acquired by the Company in early December 2011. Sales to commercial customers represented 60 percent of total sales for the fourth quarter of fiscal 2012.
AAR sales to government and defense customers decreased 13.5 percent in the fourth quarter and 1.9 percent for the fiscal year. The sales decline was primarily due to lower program activity at the company's defense logistics business and the fourth quarter fiscal 2012 adjustment to the KC10 support contract.
"We had exceptional sales growth in our businesses supporting commercial markets, including organic growth that outpaced the overall growth rate in the airline market," said David P. Storch, AAR chairman and CEO. "Our Aviation Supply Chain and Maintenance, Repair and Overhaul segments reported their highest quarterly sales in the past ten years, and benefitted from solid execution and market share gains. In addition, the newly acquired businesses Telair and Nordisk performed well and exceeded our expectations."
Storch noted the decline in the government and defense were lower due to decrease activity and aircraft availability and expected that to remain lower through fiscal year 2013,
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