) recently announced a contract win from the U.S. Army Medical
Material Center, Southwest Asia. The contract, with a one year
term and two renewal options, involves the management of medical
logistics. The value of the contract remains undisclosed.
Per the contract, AAR's Defense Systems and Logistics business
will take up the responsibility of providing the U.S. Central
Command (CENTCOM) with medical inventory management services. The
services will be extended to a few nations like Iraq,
Afghanistan, Kuwait, Qatar and the United Arab Emirates.
With the contract, the company ventures into a whole new field
of medical logistics. Previous to this, AAR had only been
involved in the logistics of products related to the aerospace
industry and ground equipment.
Illinois-based AAR Corp. provides a wide range of
high-quality, and cost-effective technical services. AAR Defense
Systems and Logistics currently supports the U.S. government
through its supply chain management, and is ranked one of the top
defense contractors in the world.
In a separate press release, the company also announced that
some of its 1.75% Convertible Senior Notes due 2026 holders have
surrendered their notes to the company, in response to the put
option that expired on Jan 31, 2013. The total amount paid as a
result of the surrender was roughly $63.6 million and was paid
through the company's free cash flow as well as unsecured
revolving credit facility. The total notes, remaining due, values
roughly $25.3 million.
AAR currently has a Zacks #3 Rank (Hold). Other stocks worth a
look in the industry are
Alliant Techsystems Inc.
Rolls Royce Holdings Plc.
BAE Systems Plc.
); each holding a Zacks Rank #1 (Strong Buy).
AAR CORP (AIR): Free Stock Analysis Report
ALLIANT TECHSYS (ATK): Free Stock Analysis
(BAESY): ETF Research Reports
(RYCEY): ETF Research Reports
To read this article on Zacks.com click here.