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updated: 12/19/2012 10:58 AM

Commercial air growth lifts AAR 2Q sales

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PRNewswire

WOOD DALE -- Aircraft maintenance and support provider AAR said second quarter 2013 sales were up thanks to strong business from the commercial airline sector.

Consolidated sales for the quarter were $512.8 million and net income of $17.8 million, or $0.44 per diluted share. Last year at the same time the company reported sales of $482.0 million and net income of $17.6 million, or $0.43 per diluted share.

Commercial sales increased 28 percent over the prior year's quarter, accounting for 60 percent of consolidated sales. The company said its acquisitions of Telair and Nordisk in Europe last year drove most of the growth, as well as strength at the company's airframe maintenance centers, parts supply and engineering services businesses. Late in the second quarter, AAR said it received its first customer aircraft at the recently opened Duluth maintenance facility and expects to expand to two lines during the third quarter.

"We are pleased with our second quarter performance in a number of areas. The combination of organic growth, accretive acquisitions, and the right-sizing of our infrastructure has enabled us to absorb the decline in our defense business," said AAR Chairman and CEO David P. Storch. "We are providing customers an integrated and comprehensive services solution reinforced by our leadership positions in niche technology products underpinned by strong intellectual property. We believe this will drive enhanced value creation for our customers and shareholders."

Government and defense sales represented 40 percent of consolidated sales and declined 15 percent from the second quarter of last year, the company said. The company said it anticipated significantly reduced volume at its mobility products and logistics businesses, although it was partially offset by strong financial performance in the airlift business.

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