The ratings on AAR Corp. have been removed from CreditWatch, where they were placed on Sept. 21, 2001. The ratings are based on weak operating performance and substantial charges for the quarter ended Nov. 30, 2001, resulting in an overall subpar financial profile. Furthermore, continued difficult conditions in the aviation support industry are likely to limit profitability, at least in the near term. AAR reported a $3 million net loss from operations, as revenues declined 30% compared with the same quarter a year earlier. About a 20% reduction in capacity and losses by most domestic airline customers following the Sept. 11 attacks caused much lower volumes in the company's commercial activities, especially in parts distribution and redistribution in the inventory...
Companies mentioned in this report are: AAR Corp.
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