November 15, 2012
AAR Awarded Blackhawk Helicopter Parts Supply Contract
Dedicated UH-60 Auxiliary Power Unit inventory to reduce lead times
WOOD DALE, Illinois – AAR (NYSE: AIR) has been awarded a contract by the U.S. Army Aviation and Missile Command (AMCOM) to provide parts and logistics services for U.S. Army Blackhawk helicopters. AAR’s Defense Systems and Logistics division will supply Hamilton Sundstrand parts for U.S. Army UH-60 Blackhawk helicopter Auxiliary Power Units (APUs). The contract has an initial one-year base period and four one-year renewal options with a total value of approximately $16 million in revenue.
The contract follows 10 months of analysis, forecasting and negotiations with the U.S. Government and the OEM. A dedicated parts inventory will enable AAR to reduce capital expense and overhead costs for the customer while improving parts availability.
“We worked closely with the supply base to be in a position to immediately start delivering parts to military personnel operating and maintaining the U.S. Army Blackhawk fleet,” said John Holmes, Aviation Services Group Vice President – Inventory Management and Distribution for AAR. “By establishing and managing a dedicated inventory, we’ve significantly reduced lead times, helping to keep these critical aircraft mission-ready and operating at peak efficiency.”
AAR provides a broad range of specialized products and services to support national defense, homeland security and humanitarian aid operations. Approximately 18% of AAR employees are former or active military personnel with field experience and an in-depth understanding of the day-to-day challenges faced by the Company’s government and defense customers. AAR is a G.I.¬ Jobs Top 100 Military Employer and is ranked among the Top 100 defense contractors in the world.
About AAR
AAR is a global aftermarket solutions company that employs more than 6,000 people in over 20 countries. Based in Wood Dale, Illinois, AAR supports commercial aviation and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR’s Aviation Services include inventory management; parts supply; OEM parts distribution; aircraft maintenance, repair and overhaul; engineering services and component repair. AAR’s Expeditionary Services include airlift operations; mobility systems; and command and control centers in support of military and humanitarian missions. More information can be found at www.aarcorp.com.
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This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled “Risk Factors”, included in the Company’s Form 10-K for the fiscal year ended May 31, 2018. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company’s control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR’s filings with the Securities and Exchange Commission.
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