The Airlift unit of aerospace/defense products and services
) has clinched a deal to provide fixed and rotary wing support
for the Afghan National Security Forces (ANSF) under the NATO
Training Mission - Afghanistan (NTM-A) and Combined Security
Transition Command - Afghanistan (CSTC-A) from the U.S. Central
Command Joint Theatre Support Contracting Command.
AAR CORP (AIR): Free Stock Analysis Report
ALLIANT TECHSYS (ATK): Free Stock Analysis
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TELEDYNE TECH (TDY): Free Stock Analysis
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The contract, with a maximum ceiling value of $134 million, calls
for AAR Airlift to provide support services to NTM-A and CSTC-A
with light fixed-wing, medium fixed-wing, and medium rotary-wing
aircraft, personnel, and logistics support.
This Indefinite Delivery/Indefinite Quantity contract reaffirms
AAR's competencies in providing airlift services in Afghanistan.
The company is the largest provider of lift services to the U.S.
Department of Defense (DoD) and has been supporting the DoD in
Afghanistan since 2004. AAR will carry out passenger and cargo
transport services from 21 locations in Afghanistan under the
Wood Dale, Ill.-based AAR provides various products and services
to the aviation and defense industries worldwide. Its Airlift
Group business unit serves both commercial and government
clients. AAR Airlift provides both fixed and rotary-wing flight
support, training, aviation maintenance, and aviation
Recently, the Airlift division received a contract to provide
fixed-wing lift services to U.S. Africa Command throughout four
Central African countries. The contract is valued at $23 million
and includes a base period of seven months plus five three-month
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.
Teledyne Technologies Inc.
) are worth looking into now. While Alliant Techsystems sports a
Zacks Rank #1 (Strong Buy), Hexcel and Teledyne carry a
Zacks Rank #2 (Buy).