November 19, 2013
AAR Selected by Northrop Grumman Corporation to Support Japan E-2C Hawkeye Platform
Company to sell parts directly to Sumitomo and stock inventory to increase aircraft readiness
WOOD DALE, Illinois — AAR (NYSE: AIR) has entered into an exclusive multimillion-dollar five-year agreement with Northrop Grumman Corporation (NYSE: NOC) to supply specific airframe parts and accessories for the E-2C Hawkeye aircraft operated by the Japan Air Self Defense Force (JASDF).
The contract will be managed by AAR’s Defense Systems and Logistics Distribution division, which will sell directly to Sumitomo Corporation, one of the parts trading companies used by the Japan Ministry of Defense (JMOD) to procure parts and accessories. AAR will stock inventory to increase JASDF’s E-2C Hawkeye readiness level.
“Providing in-stock inventory reduces lead times and helps increase the sustainability of the JASDF E-2C aircraft platform,” said John Holmes, Aviation Services Group Vice President – Aviation Supply Chain for AAR. “This is critically important as the Japanese Ministry of Defense increases the use of the E-2C to perform surveillance and reconnaissance over its waterways and in its skies.”
This agreement expands the relationship between AAR and Sumitomo, which began in 2012. At that time, AAR was awarded a five-year contract by Pratt & Whitney AeroPower to become the exclusive supplier of Auxiliary Power Unit (APU) and Jet Fuel Starter (JFS) parts and accessories to the JMOD.
“Building upon our role as a JMOD supplier reinforces our presence in Japan and our position as a global market leader in parts supply chain and distribution,” Holmes said.
About AAR
AAR is a global aftermarket solutions company that employs more than 6,000 people in over 20 countries. Based in Wood Dale, Illinois, AAR supports commercial aviation and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR’s Aviation Services include inventory management; parts supply; OEM parts distribution; aircraft maintenance, repair and overhaul; engineering services and component repair. AAR’s Expeditionary Services include airlift operations; mobility systems; and command and control centers in support of military and humanitarian missions. More information can be found at www.aarcorp.com.
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This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled “Risk Factors”, included in the Company’s Form 10-K for the fiscal year ended May 31, 2018. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company’s control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR’s filings with the Securities and Exchange Commission.
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