AAR Refocuses On Services

The chief executive of aerospace and defense company AAR said this week the company is making progress reshaping as a services provider to the commercial aviation, government and defense markets.

As part of this effort, the company has sold its Telair Cargo Group and moved its precision systems manufacturing operations into discontinued operations. David Storch, AAR's chief executive, said in a company announcement that AAR has also streamlined its remaining services businesses and will now turn its attention to growing them.

In the fourth quarter, AAR reported sales of $415.8 million, down from $420.6 million in the same three-month period a year earlier. Quarterly profit hit $15.1 million, down from $17.1 million in the same quarter the prior year.

AAR has also grown its commercial work. While sales to commercial customers made up 57 percent of sales in the fourth quarter of 2014, these sales represented 65 percent in the most recent quarter.