AAR Fiscal 1Q Profit Shrinks, Beats Estimates

WOOD DALE, Ill. (AP) — Aviation supplier AAR Corp. said Tuesday its fiscal first-quarter profit shrank by nearly a third as commercial airlines cut back on inventory levels and maintenance visits.

But the results narrowly beat analysts' expectations. And the profit was at the top end of a range AAR had forecast last month, when it warned it would fall short of Wall Street's expectations.

Wood Dale, Ill.-based AAR reported net income for the three months ended Aug. 31 of $10.2 million, or 27 cents per share, down from a profit of nearly $15 million, or 38 cents per share, in the year-ago period.

Revenue fell 5 percent to $341.5 million from $359.9 million.

Analysts surveyed by Thomson Reuters had forecast a profit of 25 cents per share during the latest quarter on revenue of $336.3 million.

On Aug. 24, AAR said it expected earnings would fall within a range of 23 cents to 27 cents per share on sales of $330 million to $345 million. The stock shed 9 percent the next day.