AAR Forecasts Weaker-than-expected 1Q Profit

WOOD DALE, Ill. (AP) — Aviation product supplier AAR Corp. said Monday its quarterly earnings will fall short of analysts' expectations as commercial airlines cut back on inventory levels and maintenance visits.

AAR said earnings for the three-month period ending Aug. 31 will range between 23 cents and 27 cents per share on sales of $330 million to $345 million. Analysts surveyed by Thomson Reuters expect AAR to post much higher earnings of 41 cents per share on revenue of $354 million, on average.

AAR shares gave up $1.54, or 8 percent, to $17.49 per share in after-hours trading on the news, having closed the regular session earlier up 54 cents, or 3 percent, at $19.03.

"Weakness in the commercial markets has been amplified this quarter as airlines have taken further steps to reduce costs and conserve cash. We had been expecting a pick-up in our parts business in August but that has not materialized," AAR Corp. Chairman and CEO David P. Storch said in a statement.

Storch added that demand for aftermarket parts is expected to recover in the early part of next year.