AAR Corp. (AIR), one of the top contractors of aerospace, defense products and services in the world, declared that its contract to provide airlift services in Western and Central Africa has been renewed. The contract is expected to close by June 2013 and is valued at roughly $9 million.
The agreement entails providing services to U.S. Army Space and Missile Defense Command (:SMDC) and U.S. Department of Defense Counter Narco-Terrorism Program Office (:CNTPO) operations. Per the terms of the renewed contract, the company will be responsible for personnel and supplies transportation through the use of two fixed-wing aircraft.
The company has a track record of successful contracts with the US government. This deal, therefore, further strengthens the company’s ties with the government due to the safety and reliability of the services it offers.
AAR reported its fiscal second quarter 2013 results last month with earnings per share of 44 cents and revenue of $512.8 million. Based on the improved year-over-year results for the quarter, management increased its earnings outlook for fiscal 2013. New contracts as well as contract renewals are expected to help the company to achieve the target.
Illinois based AAR Corp. provides a wide range of high-quality, and cost-effective technical services. The company’s airlift unit is engaged in offering expeditionary airlift and specific aircraft services to assist national security, safety and humanitarian relief operations in various regions.
AAR Corp. carries a Zacks Rank #3 (Hold). Other stocks in the industry which are worth considering include Alliant Techsystems Inc. (ATK), Ducommun Inc. (DCO) and Triumph Group Inc. (TGI). Each of them holds a Zacks Rank #1 (Strong Buy).
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