AAR Facility.jpg

Parts Supply, Programs Boost AAR Sales

The U.S. aftermarket services provider posted consolidated sales of $562.7 million for the fourth quarter fiscal 2019.

AAR has reported a 19% year-on-year rise in consolidated sales of $562.7 million for the fourth-quarter fiscal 2019 with income from continuing operations standing at $26.6 million.

The rise for the period was driven by a couple of factors, according to John Holmes, president and CEO of Wood Dale, Illinois-headquartered AAR. “Our double-digit organic sales growth and solid cash flow generation were driven by the continued strength in our parts supply and programs activities,” he said in a statement released on July 10.

One of the growth areas was in the company’s aftermarket services division, which saw sales increase by 18% for the period. That owes to strong demand for both new and aftermarket parts, as well as the successful execution of the Worldwide Aviation Support Services program and other government projects.

Key agreements signed during the quarter included an extension of an existing support agreement with German engine MRO specialist MTU Maintenance by another five years in April covering the PW2000 engine. Under the terms of the contract, AAR will continue to provide engine components to MTU’s facility in Hanover, Germany.

For its work on government fleets, AAR penned a distribution agreement with Woodward to distribute spare piece parts in support of U.S. government fleets across multiple engine platforms.

Overall, AAR’s consolidated sales to government and military customers rose in Q4 from 26% last year to 35% in the same period for 2019. Meanwhile, its commercial sales represented 65% of sales during the same period.

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