WOOD DALE, Ill. , Sept. 16 /PRNewswire-FirstCall/ -- AAR (NYSE: AIR) today reported fiscal 2009 first quarter net sales of $359.9 million and income from continuing operations of $18.7 million, or $0.45 per diluted share. Sales grew 18% from $306.0 million in last year's first quarter, and income from continuing operations increased 23% from $15.3 million in the prior year. Sales to defense customers increased 32% and sales to commercial customers increased 10%, year over year. Excluding the Aircraft Sales and Leasing segment, sales growth to commercial customers was 23%.

The 32% growth in sales to defense customers was attributable to strong performance at the Company's mobility business, strength in performance-based logistics programs and the impact of the acquisition of SUMMA Technology. The 10% increase in sales to commercial customers was driven by strength in aftermarket parts sales and increased MRO activity.

"We had a strong first quarter marked by continued growth in revenue, operating income and earnings despite volatility in certain parts of our operating environment," said David P. Storch , Chairman and Chief Executive Officer of AAR CORP. "The results were driven by market share gains and margin expansion in our Aviation Supply Chain, MRO and Structures and Systems segments."

Following are the highlights for each segment.

Aviation Supply Chain -- Sales grew 8% to $153.5 million for the first quarter and gross profit increased 11% to $35.4 million, resulting in a gross profit margin of 23.1% compared to 22.4% last year. Results in this segment were driven by strong aftermarket parts sales to commercial and defense customers and strength in performance-based logistics programs.

Maintenance, Repair and Overhaul -- Sales grew 38% to $86.3 million for the first quarter and gross profit increased 59% to $12.8 million, resulting in a gross profit margin of 14.8% compared to 12.8% last year. The sales growth reflects the impact of the acquisition of Avborne Heavy Maintenance and continued strength at the Company's landing gear business. Sales were also higher year-over-year at the Company's Indianapolis and Oklahoma City airframe maintenance centers.

Structures and Systems -- Sales grew 53% to $116.8 million for the first quarter and gross profit increased 91% to $17.5 million, resulting in a gross profit margin of 14.9% compared to 11.9% in the prior year. Sales were positively impacted by organic growth from our mobility, composite structures and cargo systems businesses and the impact of the acquisition of SUMMA Technology. The Company recorded its first shipments from its recently opened composites center in Sacramento, California .

Aircraft Sales and Leasing -- During the first quarter the Company had no aircraft sales and as a result, sales in the Aircraft Sales and Leasing segment declined $20.8 million and gross profit and earnings from aircraft joint ventures declined $5.5 million from the prior year. The Company's aircraft position remained unchanged at 37 aircraft, with 29 aircraft held in joint ventures and eight aircraft held in the Company's wholly-owned portfolio.