Summary: AAR Corp. Dec 05
- ID: 2042289
- December 2005
- Standard & Poors
The ratings on Wood Dale, Ill.-based AAR Corp. reflect the risks associated with highly cyclical and competitive conditions in the airline industry, the firm's primary market, and modest profitability. Those factors are offset in part by the company's established business position and moderately leveraged balance sheet. The Sept. 11, 2001, events and other shocks to the aviation system led to a severe downturn in the airline sector, especially in the U.S. That caused a significant decline in AAR's business and resulted in weak financial performance in recent years. Extensive cost reductions, strength in the defense-related manufacturing and logistics business (about 35% of revenues), and a diversified customer base have helped cushion the impact. AAR has also benefited from gradually recovering...
Companies mentioned in this report are: AAR Corp.
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