{"id":31965,"date":"2014-09-24T09:56:34","date_gmt":"2014-09-24T13:56:34","guid":{"rendered":"https:\/\/cablemanpro.com\/wallstreetpr\/?p=31965"},"modified":"2014-09-24T09:56:34","modified_gmt":"2014-09-24T13:56:34","slug":"aar-corp-nyseair-chief-executive-officer-david-storch-blames-afghanistan-aircraft-positions-for-fall-in-defense-sales-in-1q","status":"publish","type":"post","link":"https:\/\/cablemanpro.com\/wallstreetpr\/aar-corp-nyseair-chief-executive-officer-david-storch-blames-afghanistan-aircraft-positions-for-fall-in-defense-sales-in-1q-31965","title":{"rendered":"AAR Corp. (NYSE:AIR) Chief Executive Officer, David Storch, Blames Afghanistan Aircraft Positions For Fall In Defense Sales in 1Q"},"content":{"rendered":"<p style=\"text-align: justify;\">Boston, MA 09\/24\/2014 (wallstreetpr) \u2013 Diversified products and services provider to commercial and defense aviation markets, <strong>AAR Corp. (NYSE:AIR)<\/strong> Chairman and Chief Executive Officer, David Storch, has blamed Afghanistan aircraft positions for the drop in defense sales during the first quarter. This apart, delay in Africa also hurt its sales.<\/p>\n<p style=\"text-align: justify;\"><strong>CEO Speaks<\/strong><\/p>\n<p style=\"text-align: justify;\">The AAR Corp. (NYSE:AIR)\u2019s CEO said that there was a delay in commencement of fresh contracts in Africa, which affected its airlift business during the first quarter, its <a href=\"http:\/\/finance.yahoo.com\/news\/aar-reports-first-quarter-fiscal-200500355.html\" target=\"_blank\">statement<\/a> revealed. As a result, defense sales recorded a 27% drop though its Aviation Services division witnessed 7% growth its revenues to commercial customers.<\/p>\n<p style=\"text-align: justify;\">Storch also said that though its results in the first quarter were in line with his expectations, sales in the two divisions witnessed a downtrend. He also indicated that the expected reductions in military operations would not compensate the improvement it could witness in its commercial, as well as, defense supply chain businesses and improvement in its MRO performance. Therefore, he sees an unfavorable trend.<\/p>\n<p style=\"text-align: justify;\"><strong>Outlook Reduced<\/strong><\/p>\n<p style=\"text-align: justify;\">In tune with the business conditions, AAR Corp. (NYSE:AIR) has slashed its adjusted earnings guidance to $1.65 &#8211; $1.75 a share for the fiscal year 2015 from $1.80 &#8211; $1.90 a share projected by it earlier. Similarly, it has reduced its sales outlook to $2.00 &#8211; $2.05 billion from $2.10 &#8211; $2.15 billion projected by it previously. On average, Wall Street analysts\u2019 are estimating the company to earn $1.87 a share on revenues of $2.08 billion.<\/p>\n<p style=\"text-align: justify;\">The company disclosed that the downward revision followed after it found that it would not be able to meet its assumed number and mix of contracted Airlift positions.<\/p>\n<p style=\"text-align: justify;\"><strong>1Q Results<\/strong><\/p>\n<p style=\"text-align: justify;\">AAR Corp. (NYSE:AIR) reported net income of $14.4 million or earnings of 36 cents a share for the first quarter, down 20% from $17.9 million or 45 cents a share in the year-ago quarter. Its sales dipped 9% to $469.2 million from $514.5 million in the previous year quarter.<\/p>\n<p style=\"text-align: justify;\">While cost of s ales fell 8.4% to $393.9 million from $429.8 million, selling, general and administrative expenses dipped 5.9% to $44.9 million from $47.7 million in the year earlier quarter. The company closed the quarter with cash and cash equivalents of $81.8 million.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Boston, MA 09\/24\/2014 (wallstreetpr) \u2013 Diversified products and services provider to commercial and defense aviation markets, AAR Corp. (NYSE:AIR) Chairman and Chief Executive Officer, David [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":31969,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[9620,9619,9622,9621],"stock_ticker":[],"class_list":["post-31965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-aar-corp","tag-aar-corp-nyseair","tag-david-storch","tag-nyseair","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AAR Corp. 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