AAR Corp.

AAR's parts business grew 31% this quarter. Sales of new parts jumped 23% without counting any acquisitions, with strength from both airlines and the military. Exclusive deals with major parts makers mean customers often have to buy through AAR to get certified parts.

AAR's repair business also grew 31% this quarter, and the company expects sales from its core businesses to climb another 14% to 16% next quarter. Now it's buying a 65% controlling stake in MRO Holdings, which does top to bottom checkups on jets. Every plane that rolls into those hangars needs parts and repairs, and that work flows to the rest of AAR.

AAR moves a lot of money but keeps very little of it. Profit was 40 million dollars on 918 million dollars of sales this quarter, or roughly 4 cents on every dollar. Overhead costs jumped to 107 million dollars from about 72 million a year ago, partly from buying other companies and folding them in.

AAR already carries about 780 million dollars in debt, and paying for the MRO Holdings deal will take new money on top of that. The company may sell new shares to help fund it. Its share count has already climbed to 39.9 million from 35.9 million a year ago, so each existing share owns a slightly smaller piece of the company.