Shares of AAR Corp (AIR.N) lost more than a tenth of their value on Wednesday, after the aircraft parts supplier said plane shortages and higher costs led to poor performance at two of its businesses and that improvement is expected only in early next fiscal.
The company on Wednesday blamed unscheduled maintenance inspections and delayed receipt of aircraft, as well as higher maintenance costs for the poor performance at its airlift operations business.
Also, AAR said it experienced higher-than-expected start-up costs and cost overruns on certain programs at its precision machining business.
"We expect fourth-quarter results to be similar to third-quarter results for both businesses, with improvement beginning in the first quarter of fiscal 2013," CEO David Storch said.
AAR's third-quarter net income came ahead of Wall Street analysts' estimates by a cent.
Shares of the company touched a low of $19.83 on the New York Stock Exchange, but recouped some of those losses and were down 9 percent at $20.08 in afternoon trade. The stock was one of the top percentage losers on the exchange.
(Reporting by Sagarika Jaisinghani and Kartick Jagtap in Bangalore; Editing by Joyjeet Das)