AAR REPORTS FOURTH QUARTER AND FISCAL YEAR 2014 RESULTS

WOOD DALE, Ill., July 15, 2014 /PRNewswire/ — AAR CORP. (NYSE: AIR), a leading, global aerospace and defense company, today reported fourth quarter and full Fiscal Year 2014 consolidated results. Fourth quarter sales were $505.4 million and diluted earnings per share were $0.43. For the fourth quarter of the prior fiscal year, the Company reported sales of $553.8 million and earnings per share of $0.01 after a $29.8 million charge related to the KC-10 program. Full year earnings per share for Fiscal Year 2014 are $1.83, as compared to $1.38 reported in Fiscal Year 2013.

“We are pleased with our overall performance in the fourth quarter,” said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. “In the Aviation Services segment we are seeing positive results from our investment in new supply chain programs that are ramping up, including new customers from the supply chain hub we established in Europe. We have put renewed emphasis on identifying and capturing new business for our MRO facilities and successfully competed and captured wide-body work for Aeromexico, a new customer. Our airlift business was selected by the DoD for new work in Africa and the Vertical Replenishment (VERTREP) program with the Navy. Overall we feel very good about our cash generation for the year allowing us to strengthen our balance sheet and continue to position the Company for growth.”

Fourth Quarter 2014 Results

Fourth quarter consolidated sales were $505.4 million versus the prior year level of $553.8 million. Sales in the Aviation Services segment declined 10% to $373.8 million mainly due to softness at the Company’s MRO facilities and fewer expeditionary airlift flying positions. Sales in the Technology Products segment declined 4% to $131.6 million, primarily due to lower sales of commercial cargo systems.