AAR reported fiscal year 2012 first quarter sales of $479.3 million and income from continuing operations of $17.0 million. For the first quarter of last fiscal year, the Company reported sales of $404.4 million and income from continuing operations of $14.0 million. Sales to commercial customers increased 40% compared to the first quarter of last year, driven by robust demand for spare parts support and completion of the sale of two aircraft from the Company’s aircraft portfolio. The sale of the two aircraft contributed $33.3 million to revenue and is consistent with the Company’s ongoing commitment to reduce its investment in its aircraft sales and leasing portfolio. Sales growth to commercial customers was 21% excluding the sale of the two aircraft. The Company also reported year-over-year growth at its MRO facilities attributable to share gains and strength at its landing gear business.
Consolidated gross profit margin was 15.6% for the first quarter compared to 17.3% last year. The reduction in the consolidated gross profit margin was due to lower volume within the Structures and Systems segment, the impact from the sale of the two aircraft and unfavorable mix in MRO.