AAR CORP. has reported third-quarter fiscal year 2024 consolidated sales of US$567.3 million and income from continuing operations of US$14.0 million. For the third quarter of the prior year, the company reported sales of US$521.1 million and income from continuing operations of US$21.8 million. Adjusted diluted earnings per share from continuing operations in the third quarter of fiscal year 2024 were US$0.85, compared to US$0.75 in the third quarter of the prior year.
Consolidated third-quarter sales increased nine percent over the prior-year quarter. AAR reported that consolidated sales to commercial customers increased 18%, primarily due to strong demand for its parts supply offerings, MRO services and increased volumes in its commercial programme’s activities while sales to government customers decreased seven percent. Sales to commercial customers were 70% of consolidated sales, compared to 65% in the prior-year quarter.
On March 1, 2024, AAR completed the acquisition of Triumph Group’s Product Support business for US$725 million, which was financed using the proceeds from its issuance of US$550 million of 6.75% Senior Notes due 2029 and borrowings from its Amended Revolving Credit Facility, which was upsized from US$620 million to US$825 million. The acquisition of the product support business scales AAR’s repair capabilities, expands its footprint in the Asia-Pacific region and adds more than 700 talented team members.
“During the quarter, we drove 18% sales growth in our commercial business capitalising on the continued strong demand for both our parts supply activities and MRO services. We expect commercial demand to remain elevated as the life and high utilisation of current generation aircraft continue to extend,” said John M. Holmes, Chairman, President and Chief Executive Officer of AAR CORP.
Gross profit margin increased from 18.1% in the prior-year quarter to 19.4% in the current quarter, primarily due to the favourable impact of the company’s operating efficiency on increased sales volumes. (£1.00 = US$1.27 at time of publication).
