AAR has reported second quarter fiscal year 2019 consolidated sales of $493.3 million and income from continuing operations of $11.2 million, or $0.32 per diluted share. Second quarter results included a non-cash pre-tax charge of $12.4 million, or $0.27 per diluted share, driven by a European airline customer bankruptcy. For the second quarter of the prior year, the company reported sales of $420.6 million and income from continuing operations of $13.2 million, or $0.38 per diluted share. Its adjusted diluted earnings per share from continuing operations increased 51% from $0.39 last year to $0.59 in the current quarter.
Consolidated sales increased 17.3% over the prior year period due to continued growth in our trading, distribution and programs activities. Excluding the impact of the wind-down of the KC-10 CLS program and despite softness in MRO activities, aviation services sales grew 21.0% year over year.
"Our robust growth continued into the second quarter driven by exceptional performance in our trading, distribution and programs activities. These strong results were adversely impacted by a charge related to the bankruptcy of a European program customer which occurred late in the quarter. While this was an unfortunate development, overall we are confident in the strength and quality of our diverse customer base," said John M. Holmes, President and Chief Executive Officer of AAR CORP.
Holmes continued, "We are very pleased with the number of new contract awards across multiple product lines. We are further encouraged by the robust pipeline of opportunities we see in both the government and commercial markets which validates our growth strategy."
Sales to government and defense customers were 32% of consolidated sales compared to 26% in the prior year's quarter reflecting growth from the WASS program and other government sales. Second quarter sales to commercial customers, which also increased during the period, represented 68% of consolidated sales compared to 74% of consolidated sales in the second quarter of last year.
Gross profit margins decreased to 15.9% in the current quarter from 16.8% in the prior year quarter due primarily to lower volumes in our airframe maintenance facilities. Selling, general and administrative expenses as a percentage of sales were 10.0% for the quarter, compared to 11.6% last year, reflecting continued leverage of its cost structure to support double-digit sales growth.
Net interest expense for the quarter was $2.4 million compared to $1.8 million last year. Also during the quarter, the company paid cash dividends of $2.6 million, or $0.075 per share. Average diluted share count for the quarter was 35.0 million compared to 34.5 million in the second quarter last year. Cash flow used in operating activities from continuing operations was $8.3 million.
Holmes concluded, "We acted upon numerous investment opportunities to support the significant growth in our trading, distribution and programs activities. As previously communicated, we expect to generate significant cash flow in the second half of the year and will become cash positive for the entire year.