AAR Corp issues profit warning

AAR Corp forecasts (24-Aug-2009) results for the quarter ending 31-Aug-2009 (first fiscal quarter), will be below expectations, due to lower sales and gross margins in the company's businesses that support commercial aviation, as airlines further reduce inventory levels and maintenance visits in response to economic pressure and tight credit markets. AAR expects first quarter sales to be USD330-345 million and diluted earnings per share of USD0.23-0.27 while still forecasting positive cash flow from operations for the period. [more]

AAR Corp: "Weakness in the commercial markets has been amplified this quarter as airlines have taken further steps to reduce costs and conserve cash. We had been expecting a pick-up in our parts business in August but that has not materialised.We are well positioned to serve our customers when these trends reverse, and based on dialogue with our customers, we expect demand for aftermarket parts to recover in the early part of calendar year 2010... Overall, we expect to see modest sequential improvement in our consolidated second quarter results," David P Storch, Chairman and CEO. Source: AAR Corp, 24-Aug-2009