AAR Corp. (AIR) has recently been awarded a contract to supply Unison parts and support to Kansas Aviation of Independence LLC (KAI). The latter is an FAA, EASA, AS9110:2003 and ISO 9001:2008 certified repair station serving a global market.
The transaction will be handled by AAR Distribution, the exclusive global aftermarket distributor for Unison products and a part of AAR's Allen Asset Management division. The deal will last for one year and is expected to generate roughly $1 million revenue in supplied parts. The company will primarily concentrate on supplying repair kits for turbine engine exciters, factory new exciters and various hardware to support KAI's overhaul activities.
AAR Corp, based in Wood Dale, Illinois, provides various products and services to the aviation and defense industries worldwide. The company operates in four segments: Aviation Supply Chain; Maintenance, Repair, and Overhaul; Structures and Systems; and Government & Defense Services.
In the recently reported first quarter 2012 results, the company posted favorable numbers with its net income rising approximately 21.8% year over year to $16.6 million. Rise in demand from government and defense customers led to a robust sales growth during the quarter. Going forward, the company expects a steady improvement in operating margins.
The current Zacks Consensus Estimate for the second quarter of fiscal year 2012 is 49 cents, which represents a year-over-year growth of 9.78%. Estimates for the fiscal years 2012 and 2013 are $2.05 and $2.44, reflecting annual growth of 11.80% and 19.16%, respectively.
The company competes directly with its peers such as Goodrich Corp.(GR), Boeing Co. (BA) and Lockheed Martin Corporation (LMT).
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