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Is There Anything AAR Corp. Doesn’t Do?

By Chris Fernandez | November 1st, 2007 at 7:56 pm | (3) comments
1

I just received an email press release update tonight from PeakStocks.com portfolio pick AAR Corp. (NYSE: AIR), in which the company details how its equipment has helped in the California wild fires that caused wide-spread destruction the last few weeks.

According to their press release:

“…The National Guard is using AAR’s Contingency Response Communications System, model IC4UTM (CRCS/IC4U), a radio-interoperability system that makes it possible for different agencies, such as the National Guard, firefighters, police, and medical responders to communicate with each other by bridging the gap between previously incompatible communications systems…

…Four CRCS/IC4U systems are currently dedicated to fire-fighting effort. One system was immediately deployed to Qualcomm Stadium, a shelter for evacuees; another was dispatched to Montgomery Airfield, a staging area for this disaster; and two systems were deployed to assist fire-fighting operations…”

But here’s the cool part:

“…The CRCS/IC4U system fits in the back of a three-quarter ton pick-up truck or a HMMWV and runs off a regular power source or generator, allowing it to be moved right into the heart of an emergency situation. Cutting-edge software within the AAR CRCS/IC4U enables responders with radios, cell phones, walkie-talkies, CBs, and other technologies to communicate seamlessly…

…Each system can be customized with equipment specifically designed to work within the region or community for which it is purchased, and can be up and running in less than a half hour with minimal training. Other National Guard units that have purchased this system include Montana and Georgia…”

IC4U interior-Exterior Pics

Everything Works Together

If you think about that, this is pretty amazing. No matter what communications device the firefighters or other rescue crew are using, they can all “call in” and communicate with each-other and maintain a command center seamlessly!

Note: Please see comments below for more explanation on these units.

Impact On the Company

This is the type of stuff that AAR does in their Structures and Systems unit, which accounts for about 25% of their overall sales.

Now, this particular unit doesn’t account for any meaningful amount of sales, but that’s not the point.

The point that I am trying to make is that AAR is involved in so many different business segments like this one, that their reputation as a quality producer of first response, defense, and mobile units, precedes them.

In addition, the fact that these types of systems are being purchased by individual state’s national guards is great because it shows that even if military spending slows, AAR is diversified enough to still use their proprietary technology and manufacturing, to sell needed rapid deployment equipment and mobile tactical shelters, to anyone, in any country, at any time, for any reason at all.

Tell Me More

I’m working on it! You see, AIR does so many things, that it has taken me awhile to get my full research report together for inclusion on the website.

I should have it coming within the next couple of weeks, but in the mean time if you have been considering purchasing AAR’s shares, you can get a quick run-down of all their business segments by going directly to their website here:

Click here to read my abbreviated online research report on AAR and why I like the company, risks, etc.

Suffice it to say, I am very pleased with AIR’s overall business, their improving margins, expanding profits, and potential for lucrative expansion and acquisitions that will build the business and sustain their position as a best-in-breed company.

No one does all the things they do (as I will detail in my report), and this allows them to be better diversified and prepared for anything unforeseen.

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(3) comments to “Is There Anything AAR Corp. Doesn’t Do?”

  1. Kimberly Cade Says:

    Please keep me posted on the developments of this company. I may want to invest. Thanks

  2. Kimberly Cade Says:

    The only problem with this press release is AAR did not build the technology that is in the CA Wild fire relief effort. Information Processing Systems is the designer and builder of the IC4U system. AAR built the vehicle.
    Kimberly

  3. Chris Fernandez Says:

    Kimberly,

    Thanks for the feedback, you are right, I did not mention in my posting that the actual system is not built by AAR Corp., but by Information Processing Systems.

    However, AAR DOES make the box that encloses the unit and makes it portable for the needs of the military, national guard and other first responders, as the latest pics that I have posted indicate.

    What I still like about this is that AAR takes off-the-shelf equipment, like the IC4U system, and integrates it within their product lines for ease of use, and logistical purposes.

    Just like Apple doesn’t make the hard drive, or the keyboard or the monitor on their laptops, they do put it all together in a nice box that we like to carry around.

    That’s the main point of the post: the ability of AAR to create these and MANY other enclosures for military and government and city/state use in a way that others have not, or in a more cost-effective manner, and thus keep their competitive advantage going forward.

    Thanks for your comment.

    Chris

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