AAR to Consolidate North American MRO Footprint to Optimize Network Capacity
June 30, 2015
Aviation services company to transfer Hot Springs, Ark., MRO operations to Oklahoma City
WOOD DALE, Illinois, June 30, 2015 -- AAR (NYSE: AIR) announced that it will close its MRO facility in Hot Springs, Ark., and transfer operations to its Oklahoma City, Okla., facility as part of the Company’s efforts to optimize its assets and improve return on invested capital for shareholders.
In response to overcapacity in North America, AAR will locate maintenance for regional aircraft in Oklahoma City by August to better align the capacity of AAR’s 1MRO Network with current market demand. The employees working the two heavy maintenance lines in the 60,000-square-foot facility in Hot Springs will be offered employment at other AAR facilities. Customers should expect the same high level of quality and performance throughout AAR’s five remaining facilities in the Company’s MRO network, which was recently named the Best Airframe MRO Provider worldwide by ATE&M.
“The consolidation of our 1MRO Network is part of the Company’s strategy to rationalize all of its business units with the objective of improving operating margins and shareholder returns,” said John Holmes, Chief Operating Officer, Aviation Services. “It allows us to optimize the capacity of our North American footprint and focus on better integrating our maintenance, repair and supply chain offerings for customers.”
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 firstname.lastname@example.org 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, 2014 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.