BERWYN, Pa.--(BUSINESS WIRE)--Sep. 18, 2013--
Triumph Group, Inc. (NYSE: TGI) today announced that it expects
to record pre-tax additional program costs during fiscal year 2014
totaling approximately $68.0 million, or $0.83 per diluted share, primarily
associated with the 747-8 program. Of the total incremental costs,
approximately $44.0 million, or $0.53 per diluted share, will be
included in the company’s second quarter fiscal year 2014 financial
results. The company expects that approximately $11.0 million, or $0.14
per diluted share, will be reflected in third quarter fiscal year 2014
and the remaining $13.0 million, or $0.16 per diluted share, will be
included in the fourth quarter fiscal year 2014 financial results. The
number of shares used in computing diluted earnings per share was
approximately 53.0 million shares.
These amounts have resulted from reductions to the profitability
estimates of the company’s current 747-8 production lot, which will be
approximately 80% completed by the end of the company’s second quarter
fiscal year 2014 and is expected to be nearly 100% completed by the end
of the third quarter fiscal year 2014. As a result of the current cost
levels, the expected profitability on the next production lot, which
will begin delivery in the fourth quarter of fiscal year 2014, was also
decreased. Both current and future production lots are expected to be
profitable and not result in loss reserves.
Jeffry D. Frisby, Triumph’s President and Chief Executive Officer, said,
“We are disappointed in our recent execution on the 747 program. In
addition to a new leadership team, we have already taken several
actions, including the development of a detailed game plan to reduce
cost and improve quality and on-time delivery in a sustainable way. As
we move forward, we are confident that we will be able to return the
747-8 program to our expected level of execution and profitability and
we remain confident that our business model will provide for sustainable
long-term growth for Triumph Group as a whole.”
The company will update its fiscal year 2014 guidance when it reports
its second quarter fiscal year 2014 results.
Triumph’s President and Chief Executive Officer, Jeffry D. Frisby, and
Executive Vice President and Chief Financial Officer, David Kornblatt,
will participate in a conference call presentation to security analysts
to review this announcement today at 11:00 am ET. To participate in the
call, please dial (866) 206-7202 (Domestic) or (703) 639-1112
(International). A slide presentation will be included with the audio
portion of the webcast. An audio replay will be available from September
18th until September 25th by calling (888)
266-2081 (Domestic) or (703) 925-2533 (International), passcode #1623549.
Triumph Group, Inc. headquartered in Berwyn, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls a broad portfolio of
aerostructures, aircraft components, accessories, subassemblies and
systems. The company serves a broad, worldwide spectrum of the aviation
industry, including original equipment manufacturers of commercial,
regional, business and military aircraft and aircraft components, as
well as commercial and regional airlines and air cargo carriers.
More information about Triumph can be found on the company’s website at http://www.triumphgroup.com.
Statements in this release which are not historical facts are
forward-looking statements under the provisions of the Private
Securities Litigation Reform Act of 1995, including statements of
expectations of or assumptions about financial and operational
performance, cost reductions and profitability and earnings results for
fiscal 2014. All forward-looking statements involve risks and
uncertainties which could affect the company’s actual results and could
cause its actual results to differ materially from those expressed in
any forward looking statements made by, or on behalf of, the company.
Further information regarding the important factors that could cause
actual results to differ from projected results can be found in
Triumph’s reports filed with the SEC, including our Annual Report on
Form 10-K for the fiscal year ended March 31, 2013.
Source: Triumph Group, Inc.
Triumph Group, Inc.