WOOD DALE, Ill., Jan. 6 /PRNewswire-FirstCall/ -- AAR (NYSE: AIR) announced today that it has signed a Memorandum of Agreement (MOA) with Sikorsky Aircraft Corporation under which the two companies will work together to identify opportunities to expand their business relationship. In addition, AAR was named the exclusive supplier of composite interiors for the Sikorsky S-92® helicopter program and will provide precision machining services for S-92 helicopter flooring and a structural component of the H-60 helicopter airframe. The combined value of initial orders is approximately $18.8 million, with a potential contract value exceeding $60 million.
The MOA represents a formal agreement between AAR and Sikorsky to explore opportunities to align AAR's diverse engineering, manufacturing, maintenance and parts supply capabilities with Sikorsky's production and aftermarket support requirements. The fabrication of S-92 Offshore/Airline helicopter composite interiors will be performed by AAR Composites. Precision machining services will be provided by AAR Summa Technologies. Together, these AAR businesses offer a complete range of design engineering and manufacturing services for both advanced composite and metallic aerostructures.
"This MOA represents an important step in building our relationship with Sikorsky and strengthening AAR's reputation in the rotorcraft market," said Timothy J. Romenesko, President and Chief Operating Officer, AAR CORP. "We appreciate the opportunity to provide Sikorsky with high-value products and services for their S-92 and H-60 helicopter programs and look forward to working with them to explore additional opportunities to support their operations and aircraft."
AAR is currently under contract with Sikorsky to provide composite components for S-92 Search and Rescue helicopter interiors, S-92 VIP helicopter Interiors, S-92/H-92 helicopter ramp panels, CH148 helicopter Interiors and CH148 helicopter fairings and to produce machined components for H-60 aircraft.
AAR is a leading provider of value-added products and services to the worldwide aerospace and defense industry. 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 three operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; and Structures and Systems. More information can be found at www.aarcorp.com.
Sikorsky Aircraft Corp., based in Stratford, Conn., is a world leader in helicopter design, manufacture and service. Sikorsky is a subsidiary of United Technologies Corp. (NYSE: UTX), which is based in Hartford, Conn., and provides a broad range of high technology products and support services to the aerospace and building systems industries.
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 May 31, 2009 Form 10-K. 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.