A wholly owned subsidiary of Illinois-based aerospace/defense
products and services supplier
), Telair International GmbH, has plans to take over the cargo
loading system assets of Germany-based PFW Aerospace GmbH.
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Miesbach, Germany based Telair holds a leading position in
designing as well as manufacturing of cargo loading systems. This
unit is also known for its support services of cargo loading
systems for wide-body and narrow-body aircraft, even for the most
current and next-generation passenger and freighter models.
Hence, the acquisition, which is expected to be completed by the
end of 2013, will boost Telair's market position as a supplier of
cargo loading and baggage handling systems. The purchase will be
funded from available cash on hand.
Telair also supplies standard container-based systems for Airbus
A330/340 aircraft types and for the future Airbus A350, besides
The Boeing Co
) 747-800. Moreover, it provides the business manufactures
systems and components for the Boeing 737 and Airbus A320
families of aircraft, and for converted Boeing 767-300s and
AAR has maintained a satisfactory competitive position through
its market expertise as well as technical and financial
capabilities across segments. The company recently reported mixed
first quarter fiscal 2014 results. Its bottom line surpassed the
Zacks Consensus Estimate driven by efficient cost management.
However, a decline in sales at the Technology Products division
hurt the top line. Again, sales to commercial customers declined
6.1% year over year during the first quarter of fiscal 2014. The
company however expects it to return to growth in the second
quarter of fiscal 2014.
Currently, AAR Corp. has a Zacks Rank #3 (Hold). However, other
aviation companies like
Alliant Techsystems Inc.
Elbit Systems Ltd.
) are worth looking into now. Alliant Techsystems and Elbit
Systems sport a Zacks Rank #1 (Strong Buy).