A decrease in Wood Dale- based AAR Corp.’s technology products segment led to a decline in third quarter fiscal year 2013 consolidated sales compared to same period last year, however the company saw gains in its other segments during the period.
Consolidated sales for the quarter was $520.2 million and net income was $18.4 million, or 46 cents per diluted share, the company said in a statement. That compared to sales of $534.2 million and net income of $20.6 million, or 50 cents per diluted share. The prior year’s third quarter included an income tax benefit of $4 million, or 9 cents per share.
Sales in AAR’s technology products segment declined 30 percent to $112 million. However, the company said sales in its aviation services segment increased 9 percent to $408.2 million and sales in commercial sales increased 7 percent over the prior year’s third quarter. Increased sales in the commercial market were driven by growth in the company’s parts supply businesses and airframe maintenance centers, including a modest contribution from AAR’s recently opened Duluth MRO facility.
“We are pleased to report another solid quarter driven by continued positive trends in the commercial aftermarket and our ability to drive strong cash flow and improved profitability,” said David P. Storch, AAR chairman and chief executive officer.
Sales to government and defense customers represented 38 percent of consolidated sales and declined 15 percent compared to the year-ago third quarter. The reduction was primarily due to lower mobility product revenues.Copyright © 2014 Paddock Publications, Inc. All rights reserved.