Join        Login             Stock Quote

AAR Corp. (AIR) To Sell 10 Boeing 737-400 Aircraft To Malaysian Airline System Berhad

 November 29, 2012 09:13 AM

(By Balaseshan) AAR Corp. (NYSE: AIR), a supplier of avionics products, and its joint venture partner have agreed to sell 10 Boeing 737-400 aircraft to Malaysian Airline System Berhad (MAS).

The transaction is expected to be completed during AAR's 2013 fiscal third quarter with net cash proceeds of about $20 million, and will record a slight gain. Due to joint venture accounting, there will be no impact on sales.

The aircraft have been on lease to MAS since they were acquired by the joint venture in July 2007. The sale is consistent with the company's stated goal to reduce its investment in aircraft leasing.

[Related -United Technologies Corporation (NYSE:UTX): How Pension Shift Will Drive EPS?]

At its peak in 2007, the company held 31 aircraft in joint ventures and 11 aircraft in its wholly-owned portfolio. Upon completing the sale to MAS, AAR's portfolio will include six aircraft held in joint ventures and two aircraft that are wholly-owned.

While AAR has reduced its portfolio of leased aircraft, it will remain active in the aircraft sales and re-marketing business where the company has an established market presence and a successful track record.

AAR is a diversified provider of products and services to the worldwide aviation and government and defense markets. The company operates in four business segments: Aviation Supply Chain; Government and Defense Services; Maintenance, Repair and Overhaul (MRO), and Structures and Systems.

The company conducts its business activities through seven principal operating subsidiaries: AAR Parts Trading Inc., AAR Aircraft & Engine Sales & Leasing Inc., AAR Services Inc., AAR Aircraft Services Inc., AAR Manufacturing Inc., AAR Airlift Group Inc., and AAR International Inc.

[Related -The Boeing Company (BA): Why You Should Look At Boeing's Defense Business?]

AIR closed Wednesday's regular session up 3.02% at $15.35. The stock has been trading between $10 and $23.67 for the past 52 weeks.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageHas Warren Buffett Found The Best Investment In Oil?

Shares of oil stocks plunged again as the price of West Texas Intermediate wiped out nearly half of its read on...

article imageDemand For Safe-Haven Bonds Surged Last Week

The crowd piled into investment-grade bonds last week as economic worries triggered an exodus out of risky read on...

article imageThoughts on MetLife and AIG

In some ways, this is a boring time in insurance investing.  A lot of companies seem cheap on a book and/or read on...

article imageA 2016 Recession Would Be Different

If the US or the Eurozone entered a recession this year, a few macroeconomic variables would look very read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.