AAR Selected to Provide Cargo Pallets to U.S. Air Force
February 20, 2014
Company signs five-year contract to manufacture and refurbish 463L cargo pallets
WOOD DALE, Illinois – AAR (NYSE: AIR) has been awarded a contract from the United States Air Force for the production and repair of 463L cargo pallets. The contract has a two-year base period valued at $133 Million in revenue and an estimated value of $323 Million over the five-year term. The cargo pallets will be manufactured and maintained by AAR’s Mobility Systems business in Cadillac, Michigan.
The 463L pallet was developed by the U.S. Air Force and put into operation with the assistance of the Company nearly 50 years ago. The 463L design uses a lightweight balsa wood core that continues to provide unparalleled strength-to-weight performance and reliability compared with alternative commercial pallet designs.
“It is a great honor to be chosen again by the U.S. Air Force for this mission-essential work,” said Lee Krantz, Senior Vice President of AAR’s Technology Products Group. “We look forward to continuing to provide value as an integral part of the U.S. Air Force’s logistics chain by supplying and maintaining a proven product with high levels of quality, service and reliability.”
AAR and its subsidiaries offer a full line of cargo and transport solutions that contribute to the efficiency of commercial and military cargo and operations. AAR products provide excellent performance, high reliability and a low total cost of ownership, backed by a global aftermarket support network.
AAR is a global aerospace and defense aftermarket solutions company that employs in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through two operating segments: Aviation Services and Expeditionary Services.AAR’s Aviation Services include Parts Supply; OEM Solutions; Integrated Solutions; and Maintenance, Repair and Overhaul (MRO) Services. AAR’s Expeditionary Services include Mobility Systems and Composite Manufacturing operations. Additional information can be found at www.aarcorp.com.
Media contact: Daniela Pietsch, Vice President Corporate Marketing & Communications, at email@example.com or +1 630-227-5100.
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, including the estimated contract value. Forward-looking statements may also be identified because they contain words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘continue,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘likely,’’ ‘‘may,’’ ‘‘might,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘predict,’’ ‘‘project,’’ ‘‘seek,’’ ‘‘should,’’ ‘‘target,’’ ‘‘will,’’ ‘‘would,’’ or similar expressions and the negatives of those terms. 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, 2013 and the Company’s Form 10-Q for the fiscal quarter ended February 29, 2020. 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.