AAR Corp. (NYSE: AIR) has reported consolidated sales of USD 466.3 million in the first quarter Fiscal Year 2019, a 17% increase from USD 397.9 million reported in the first quarter of Fiscal Year 2018, the company said.
The company has reported income from continuing operations of USD 18.9 million, or USD 0.54 per diluted share. For the first quarter of the prior year, the Company reported income from continuing operations of USD 11.0 million, or USD 0.32 per diluted share. Adjusted diluted earnings per share from continuing operations were USD 0.54 in the current quarter compared to USD 0.33 in the first quarter of the prior year.
Sales to government and defense customers were 32.4% of consolidated sales compared to 23.3% in the prior year´s quarter reflecting growth from the WASS program and other government sales. First quarter sales to commercial customers, which also increased during the period, represented 67.6% of consolidated sales compared to 76.7% of consolidated sales in the first quarter of last year.
Gross profit margins decreased slightly to 15.3% in the current quarter from 15.5% in the prior year quarter due primarily to lower volumes in our airframe maintenance facilities. Selling, general and administrative expenses as a percentage of sales were 10.5% for the quarter, compared to 11.2% last year reflecting improved leverage of our cost structure to support our double-digit sales growth.
Net interest expense for the quarter was USD 1.6 million compared to USD 1.7 million last year. Also during the quarter, the Company paid cash dividends of USD 2.7 million, or USD 0.075 per share. Average diluted share count for the quarter was 35.1 million compared to 34.5 million in the first quarter last year. Cash flow used in operating activities from continuing operations was USD 32.9 million.
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.