AAR Corp explained

AAR Corp.
Type:Public
Industry:Aviation
Founder:Ira Allen Eichner
Hq Location City:Wood Dale, Illinois
Hq Location Country:United States
Area Served:Worldwide
Key People:John Holmes (president & CEO)
Revenue: (2023)
Profit: (2023)
Assets: (2023)
Equity: (2023)
Num Employees:5,000 (2023)
Footnotes:Financials .
References:

AAR Corp. is an American provider of aircraft maintenance services to commercial and government customers worldwide. The company is headquartered in Wood Dale, Illinois, a Chicago suburb. The company employs 5,000 people worldwide.

, the company operates major maintenance facilities in Indianapolis, Miami, Oklahoma City, Rockford, Illinois, Trois Rivieres, Quebec and Windsor, Ontario.

History

The company was founded by Ira Allen Eichner in 1951, to supply radios and other equipment to the commercial aviation industry.[1] I.A. Allen Industrial was incorporated in 1955, renamed Allen Aircraft Radio (AAR) in 1962, and became AAR CORP. in 1970. Also, in 1969, AAR began its aircraft maintenance business in Oklahoma City. In 1965, AAR expanded to Europe and opened a Singapore office in 1982.[2]

AAR organized its Aircraft Turbine Center, Inc. in 1979 after future CEO David P. Storch, Eichner's son-in-law, joined the company.

David P. Storch was CEO from 1996 to 2018. In 2018, John M. Holmes became CEO.[3]

In 2017, AAR was chosen as the prime contractor for a 15-year, $909 million landing gear award to provide total supply-chain management to support all U.S. Air Force and contractor requisitions received for all C-130, KC-135 & E-3 landing gear parts.[4]

In September 2019, the U.S. Naval Air Systems Command awarded AAR a $118M contract for procuring, modifying, and delivering two C-40 aircraft to the U.S. Marine Corps.[5]

During the Trump administration, AAR quadrupled its lobbying expenditures.[6] The company spent large sums at Trump-owned properties with the intent to get Trump to view the company more favorably. From the time Trump took office until October 2020, AAR obtained 10 new federal contracts worth a total of $1.35 billion.

In April 2021, AAR signed a multi-year agreement with United Airlines to provide heavy maintenance services in Rockford, Illinois. AAR plans to add up to 250 more aviation maintenance technician (AMT) jobs at the facility to meet increased demand from United.[7]

Financial Trends

Annual financial highlights (U.S. Dollars in millions except per share data):

!For the year ending May 31!2023!2022!2021!2020!2019!2018!2017!2016
Operating performance
Net sales1,990.51,820.01,652.32,072.02,057.81,748.31,590.81,525.4
Operating income133.9106.985.241.398.386.082.375.5
Diluted earnings per share from continuing operations2.552.191.310.712.402.111.511.30
Financial position
Working capital746.4600.21,055.6595.5609.4553.4540.3
Total assets1,097.91,007.21,539.72,079.01,517.21,524.71,504.11,456.0
Total debt382.5191.2135.2602.0142.9178.9156.2145.3
Stockholders' equity1,099.11,034.5974.4902.6905.9914.2865.8865.8
Sources[8] [9] [10]

See also

External links

41.9874°N -87.9818°W

Notes and References

  1. Web site: AAR Corp. History. January 17, 2018. Funding Universe. https://web.archive.org/web/20180117154030/http://www.fundinguniverse.com/company-histories/aar-corp-history/. January 17, 2018. April 29, 2022.
  2. News: History Of AAR – 60th Anniversary. en-US. Aviation Week Network. March 24, 2021.
  3. AAR. AAR CEO David P. Storch Announces Plans to Retire. December 24, 2021. www.prnewswire.com. en.
  4. News: March 28, 2017. USAF awards $909m landing gear support contract to AAR. en-US. Airforce Technology. September 20, 2021.
  5. Web site: SEC Form 10-K. July 21, 2021. February 3, 2022. www.sec.gov.
  6. News: Confessore. Nicholas. Yourish. Karen. Eder. Steve. Protess. Ben. Haberman. Maggie. Ashford. Grace. LaForgia. Michael. Vogel. Kenneth P.. Rothfeld. Michael. October 10, 2020. The Swamp That Trump Built. en-US. The New York Times. October 10, 2020. 0362-4331.
  7. News: Web Staff. April 22, 2021. Rockford's AAR facility to become United Airlines maintenance hub, 250 jobs coming. en-US. 23 WIFR. October 14, 2021.
  8. Web site: July 18, 2023 . 2023 Form 10-K . February 14, 2024 . U.S. Securities and Exchange Commission.
  9. Web site: Financial Reports. AAR CORP . March 30, 2022.
  10. Web site: Financial Reports. AAR CORP . March 30, 2022.