July 21, 2014
AAR reports fourth quarter and fiscal year 2014 results
AAR, a leading, global aerospace and defense company, reported fourth quarter and full Fiscal Year 2014 consolidated results. Fourth quarter consolidated sales were $505.4m versus the prior year level of $553.8m. Sales in the Aviation Services segment declined 10% to $373.8m mainly due to softness at the Company’s MRO facilities and fewer expeditionary airlift flying positions. Sales in the Technology Products segment declined 4% to $131.6m, primarily due to lower sales of commercial cargo systems. Consolidated gross profit margin for the fourth quarter on a reported basis was 17.0%, an improvement over the adjusted gross profit margin of 16.3% in prior year period.
Full Fiscal Year 2014 consolidated sales were $2.04bn. Aviation Services segment sales declined 3% to $1.56bn as a result of lower airlift support and lower activity in MRO. Technology Products segment sales declined 9% to $475.0m driven by an expected decline in demand for mobility products and lower commercial cargo sales. Sales to commercial customers were 59% of total sales as compared to 61% in fiscal 2013, with remainder of the sales to government and defense customers.