1750--7/16/2010--AAR

related topics

{competitive, industry, competition}

{acquisition, growth, future}

{cost, regulation, environmental}

{condition, economic, financial}

{cost, operation, labor}

{regulation, government, change}

{cost, contract, operation}

{operation, international, foreign}

{investment, property, distribution}

{debt, indebtedness, cash}

{product, liability, claim}

{product, market, service}

{financial, litigation, operation}

We are affected by factors that adversely affect the commercial aviation industry. Our customers may not be able to meet their financial obligations to us or we may experience less business as a result of the current airline environment, which would adversely affect our financial condition and results of operations. Market values for our aviation products fluctuate. Acquisitions expose us to risks, including the risk that we may be unable to effectively integrate acquired businesses. We face risks of cost overruns and losses on fixed-price contracts. We may be unable to re-lease or sell aircraft and engines when their current leases expire. Significant cost issues may develop in connection with the A400M Cargo system. Success within our Maintenance, Repair and Overhaul segment is dependent upon continued outsourcing by the airlines. We operate in highly competitive markets, and competitive pressures may adversely affect us. We are subject to significant government regulation and may need to incur significant expenses to comply with new or more stringent governmental regulation. Our government contracts may not continue at present sales levels, which may have a material adverse effect on our financial condition and results of operations. If we fail to comply with complex procurement laws and regulations, we could lose business and be liable for various penalties or sanctions. We are exposed to risks associated with operating internationally. We are dependent upon the continued availability of financing to manage our business and to execute our business strategy, and additional financing may not be available on terms acceptable to us. Our existing debt includes restrictive and financial covenants. Our industry is susceptible to product and other liability claims, and claims not adequately covered by insurance may adversely affect our financial condition. We must comply with extensive environmental requirements, and any exposure to environmental liabilities may adversely affect us. We may need to make significant capital expenditures to keep pace with technological developments in our industry. Our operations would be adversely affected by a shortage of skilled personnel or work stoppages.

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1750--7/16/2010--AAR_CORP