WOOD DALE, Ill., Feb. 26, 2013 /PRNewswire/ -- AAR (NYSE: AIR) and its joint venture partner have completed the sale of 10 Boeing 737-400 aircraft to Malaysian Airline System Berhad (MAS), which the Company announced in November 2012.
The sale is consistent with the Company's stated goal to reduce its investment in aircraft leasing. AAR's portfolio now includes four aircraft held in joint ventures and two aircraft that are wholly-owned. At its peak in 2007, the Company held a total of 42 aircraft in its joint venture and wholly-owned portfolios.
The transaction closed during the third quarter and will generate net cash proceeds of approximately $20 million and a modest recorded gain during the Company's current fiscal year 2013. Due to joint venture accounting, there will be no impact on reported sales.
The Company remains active in the aircraft sales, re-marketing and modification business, where AAR has an established market presence and augments the sale of aircraft with high-value parts, maintenance and modification services from its broad range of capabilities.
AAR is a leading provider of value-added products and services to the worldwide aerospace and government and defense industries. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and government/defense customers through two operating segments: Aviation Services and Technology Products. More information can be found at www.aarcorp.com.
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, 2012. 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.