AAR Corp. (NYSE:AIR) reported upbeat results for its first quarter.
The Wood Dale, Illinois-based AAR revealed consolidated sales of $400.8 million and loss from continuing operations of $13.9 million, or $0.40 per diluted share, in contrast with sales of $541.5 million and income from continuing operations of $17.1 million, or $0.49 per diluted share, for the prior-year.
AAR’s adjusted diluted earnings per share from continuing operations in the first quarter were $0.17 compared to $0.57 in the first quarter of the prior year. Current quarter results included net pretax adjustments of $26.2 million, or $0.57 per share, primarily related to the sale of our Composites business, restructuring costs, and CARES Act support.
The company’s consolidated sales to government customers increased 10% as a result of strong performance on existing government program contracts as well as shipments against the recently awarded U.S. Air Force pallet contract award in its Mobility business.
Sales to government and defense customers were 56% of consolidated sales compared to 38% in the prior year’s quarter reflecting growth from recent government contract awards and the continued impact of COVID-19 on commercial volumes.
According to CEO John Holmes, "Over the last three quarters, we have taken multiple actions to execute on our strategic plan to focus and improve on our core aviation services offering. We have divested certain non-core businesses, consolidated our facility footprint, and exited or restructured several underperforming contracts."
AAR shares gained $1.15, or 6.5% to $18.99.
