June 03, 2013
AAR’s Distribution Network to Sell Composite Panels
Customers to benefit from streamlined ordering and fulfillment
WOOD DALE, Illinois — AAR’s distribution and supply chain operation will now handle order management, distribution, and customer support for AAR’s composite flat-panel and standard products. This change is being made to benefit customers and will mean better responsiveness, 24/7 support, increased product availability, faster turnaround times, and global inventory and stocking availability.
This enhanced service will come at competitive market pricing, thus providing better value to AAR’s customers. The move also makes AAR more competitive in international markets for composite materials, such as Europe and Asia, by expanding its presence there. AAR’s composite flat-panel line consists of prefab interior panels and the pins and adhesives for those panels, manufactured by AAR’s Aerostructures and Interiors division.
“As the market for aerospace composites grows, instead of expanding customer support within the manufacturing division, we turned to AAR’s extensive existing sales and distribution network to handle this function,” said Vincent Misciagna, Vice President and General Manager of AAR Composites. “That way, customers can benefit from an extensive infrastructure already in place. They will now have a broader organization to lean on.”
That will translate into a noticeable difference in support levels, said Jason Felger, Vice President and General Manager for AAR Distribution and Supply Chain. “Customers will see increased availability of product and better service. We are stocking up inventory in order to get parts that customers need in as low a turnaround time as possible.”
Such responsiveness is critical in this industry, said Misciagna. “If a customer calls and says they really need a product, you better be able to get it to them. Sometimes you might have to deliver a product over the weekend or at 2 in the morning. That’s true on the back end, too, if there are questions about delivery or technical support needs.”
The move also gives AAR (NYSE: AIR) the chance to grow its composites presence internationally. Currently 90 percent of its sales are in North America. But AAR’s extensive distribution and supply-chain network, which includes global sales offices and stocking locations in Chicago, London, Singapore, Amsterdam, and Abu Dhabi, offers opportunities for a broader reach.
The changeover in product-line support will take place June 1. “Between now and then we will be doing the groundwork to create a seamless transition,” says Misciagna.
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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