By Mary Ellen Podmolik
| Shares of AAR Corp. fell more than 17 percent on heavy trading volume to
close at $18.26 a share on the New York Stock Exchange Tuesday,
following the company’s announcement late Monday that its fiscal
fourth-quarter earnings would fall short of expectations.

Fourth-quarter sales should be $355 million to $365 million, with
diluted earnings of at most 30 cents per share, the Wood Dale-based
company said after the market closed Monday. Analysts surveyed by
Bloomberg had estimated per-share quarterly earnings of 41 cents.

The aircraft leasing and maintenance company attributed the lower
performance to a slower-than-expected recovery in demand for its
after-market products for the commercial aviation industry and one-time
costs associated with an acquisition.

“While we have seen signs of recovery in some of our businesses that support commercial aviation, we expected a more meaningful pick-up in our parts business which has not yet materialized,” said David P. Storch, chairman and CEO, in a statement. “Although the pace of recovery in our commercial markets is less robust than we expected, I am very pleased that we continue to generate cash significantly greater than our earnings.”

About 1.86 million shares changed hands Tuesday, compared to average daily trading volume of 334,000 shares.