On Wednesday, defense contractor AAR Corp (NYSE:AIR) announced that it has won a logistics contract to manage medical supplies for the U.S. Central Command in Iraq, Afghanistan, Kuwait, Qatar, and the United Arab Emirates. The contract, for which no value was named, has a one-year base term, plus the option of two subsequent single-year renewals.
In a press release describing the award, AAR noted that this is the first time it has been asked to manage inventories of medical supplies for a defense customer. Ordinarily, its focus is on providing parts and logistics support for aircraft and ground equipment -- but the experience should be transferable.
Responding to the award, AAR Aviation Services Group Vice President for Inventory, Management and Distribution John Holmes said:
We appreciate the confidence the U.S. Army has in AAR Defense Systems and Logistics to run this important program in support of the warfighter.
Despite news of the award, AAR shares declined 1.9% in Wednesday trading to close at $19.21.