Dow Jones Newswires | AAR Corp.’s fiscal third-quarter profit dropped 42% as the commercial airline business remained weak, and the company was hurt by one customer’s bankruptcy.
Shares dropped 3.9%, to $24.65 in after-hours trading, as the aircraft leasing and maintenance company’s results fell far short of expectations. The stock has more than doubled from a four-year low about a year ago.
Chief Executive David Storch said the company saw a gradual increase in demand from commercial customers in late February that has continued.
Wood Dale-based AAR has suffered as airlines cut inventories and maintenance in response to weak travel demand and tight credit. However, sales to defense customers have remained strong.
For the quarter ended Feb. 28, AAR reported a profit of $9.9 million, or 26 cents a share, down from $17.2 million, or 43 cents a share, a year earlier.