Summary: AAR Corp. Sep 04
- ID: 2042288
- September 2004
- Standard & Poors
The ratings on Wood Dale, Ill.-based AAR Corp. reflect the risks associated with highly cyclical conditions in the airline industry, the firm's primary market, offset partly by the company's established business position and moderately leveraged capital structure. The ratings also incorporate expectations that the firm's weak profitability and subpar credit protection measures will continue to improve. AAR is the largest independent provider of aviation support services, operating in four groups: inventory and logistic services (about 40% of revenues); maintenance, repair, and overhaul (30%-35%); manufacturing (20%-25%); and aircraft and engine sales and leasing (5%). The U.S. is the largest market, accounting for about 75% of sales. In the fiscal year ended May 31, 2004, AAR recorded sales and earnings growth in...
Companies mentioned in this report are: AAR Corp.
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