AIR Teams with Kawasaki & ShinMaywa - Analyst Blog
November 21 2011 - 3:30AM
Zacks
AAR Corp. (AIR)
has recently been selected by the team of Kawasaki Heavy Industries
and ShinMaywa Industries to manufacture cargo handling systems for
the Kawasaki C-2 for supporting the Japanese Ministry of Defence
transport requirements.
The Kawasaki C-2, formerly known as
C-X aircraft, is Japan's next-generation military transport
aircraft. AAR, according to the order, will be manufacturing
systems for two initial production aircraft, slated to replace the
ageing C-1 fleet. The delivery of the C-2 cargo handling system is
expected to be completed in 2013 and run for ten years.
AAR has been working with Kawasaki
Heavy Industries and ShinMaywa Industries since 2004, designing and
developing the aircraft's cargo system. The recent order, extending
the company's close co-operation with Kawasaki and ShinMaywa
Industries, is expected to strengthen AAR's position further as a
leading cargo systems provider to the global aerospace market. The
company has also worked with Sojitz Aerospace, the international
distributor for the C-2 program earlier.
AAR plans to acquire Telair International GmbH and Nordisk
Aviation Products, known for their leadership position in the
commercial cargo market as a strategy of expanding the company’s
cargo systems business. The acquisition is expected to close during
the first week of December.
Based in Wood Dale, Illinois, AAR Corp. provides various
products and services to the aviation and defense industries
worldwide. The company’s cargo systems are produced at AAR's Cargo
Systems Division at its Goldsboro, North Carolina manufacturing
facility.
With facilities and sales locations around the world, AAR uses
its close-to-the-customer business model operating in four segments
viz. Aviation Supply Chain; Maintenance, Repair, and Overhaul;
Structures and Systems; and Government & Defense Services. The
company competes directly with its peers, such as Goodrich
Corp (GR), Boeing Co (BA), and
Lockheed Martin Corporation (LMT).
We currently hold a Neutral recommendation on the stock. AAR
Corp. has a Zacks #3 Rank, implying a short-term Hold rating (1-3
months).
AAR CORP (AIR): Free Stock Analysis Report
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GOODRICH CORP (GR): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
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