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AAR Q1 Profit Rises

AAR CORP. (AIR) Thursday reported first-quarter net income of $22.7 million or $0.63 per share, up from $11.5 million or $0.32 per share last year.

Adjusted earnings from continuing operations were $0.61 per share, up from $0.52 per share last year. Analyts polled by Thomson Reuters estimated earnings of $0.57 per share for the quarter. Analysts estimates typically exclude one-time items.

Sales for the quarter were $446.3 million, down from $455.1 million last year. Analysts had a consensus revenue estimate of $454.96 million for the quarter.

Sales to commercial customers increased 10% over the prior year quarter, primarily due to further recovery in the commercial market, while sales to government customers decreased 19% due to the natural completion of certain government programs, such as Afghanistan contracts.

"During the quarter, we drove strong commercial performance as recent new parts distribution contracts started to mature and our hangars remained largely full throughout the summer. Also in the quarter, our government business saw the full impact of the wind down in Afghanistan as well as the completion of certain other programs. As recent awards, such as our USAFE contract, ramp up over time and we win new contracts, we expect growth to return in our government business," said John M. Holmes, President and Chief Executive Officer of AAR CORP.

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