November 12, 2012
AAR Selected by Pratt & Whitney AeroPower to Supply APU Parts for Japan Ministry of Defense
Agreement expands company’s role as a worldwide defense logistics provider
WOOD DALE, Illinois – AAR (NYSE: AIR) has entered into an agreement with Pratt & Whitney AeroPower to become the exclusive supplier of Auxiliary Power Unit (APU) and Jet Fuel Starter (JFS) parts and accessories for certain aircraft operated by the Japan Ministry of Defense (JMOD). The five-year contract will be managed by AAR’s Defense Systems and Logistics division and is expected to generate approximately $8 million of revenue per year. Expansion into foreign military markets is a key part of the Company’s growth strategy for its inventory management and distribution businesses.
AAR will sell directly to Sumitomo Corp., the parts trading company used by the JMOD to procure APU parts and accessories for its H-60 Blackhawk and CH-47 Chinook helicopters, Japanese F-2 fighters and U-125 search and rescue aircraft. AAR has been a supplier for Hamilton Sundstrand since 1983 and began distributing its APU and JFS parts and accessories in the late 1990s. The new program expands AAR’s distributorship for Hamilton Sundstrand into the country of Japan.
“Each time we expand our role as a supplier for Hamilton Sundstrand, our goal is to provide their end users with high levels of customer service and value by leveraging our world-class distribution systems and processes,” said John Holmes, Aviation Services Group Vice President – Inventory Management and Distribution for AAR. “Through our agreements with Pratt & Whitney AeroPower and Sumitomo, in Japan, we’ll be able to reduce lead times and help ensure the Japan Ministry of Defense’s assets are mission-ready and operating at peak efficiency.”
AAR was recently named Aircraft Parts Supplier of the Year in a survey of more than 11,000 airline executives and industry professionals. Hamilton Sundstrand provides aircraft systems and aerospace products for both commercial and military aircraft.
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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