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|Triumph Group Reports Second Quarter Fiscal 2010 Results|
WAYNE, Pa., Oct 26, 2009 (BUSINESS WIRE) -- Triumph Group, Inc. (NYSE:TGI) today reported that net sales for
the second quarter of the fiscal year ending March 31, 2010 totaled
$313.1 million, a three percent decrease from last year's second quarter
net sales of $323.4 million. Income from continuing operations for the
second quarter of fiscal year 2010 was $20.7 million, or $1.25 per
diluted share, versus $25.1 million, or $1.51 per diluted share, for the
second quarter of the prior year. Net income for the second quarter of
fiscal year 2010 was $19.5 million, or $1.17 per diluted share, versus
$24.0 million, or $1.44 per diluted share, for the second quarter of the
prior year. The number of shares used in computing diluted earnings per
share for the second quarter of fiscal year 2010 was 16.6 million
shares. During the quarter, the company generated $40.8 million of cash
flow from operations. The results for the quarter included $1.5 million
of incremental non-cash interest expense associated with the adoption of
APB 14-1, which required a change in the accounting for convertible debt
interest, and approximately $1.0 million of start up costs related to
the Mexican facility. Prior year period results were also restated to
reflect the adoption of APB 14-1, resulting in an incremental $1.6
million of interest expense over the previously reported amount.
Net sales for the first six months of fiscal year 2010 were $629.3 million, a two percent decrease from net sales of $643.9 million last fiscal year. Income from continuing operations for the first six months of fiscal year 2010 was $42.2 million, or $2.54 per diluted share. Net income for the first six months of fiscal 2010 was $37.5 million, or $2.26 per diluted share. During the six months ended September 30, 2009, the company generated $73.3 million of cash flow from operations.
The Aerospace Systems segment reported net sales for the quarter of $256.4 million compared to $257.6 million in the prior year period. Organic sales decreased ten percent over the prior year due to the continued decline in the business jet market, program delays particularly on the Boeing 787 aircraft and the softening of the regional jet market. Operating income for the second quarter of fiscal year 2010 was $39.1 million, compared to $46.5 million for the prior year period. Operating income for the quarter included $1.2 million of legal expenses associated with the ongoing trade secret litigation.
The Aftermarket Services segment reported net sales for the quarter of $57.3 million compared to $66.5 million in the prior year, a decrease of fourteen percent primarily due to lower passenger and freight traffic and the continued effects of airline inventory de-stocking. Operating income for the second quarter of fiscal year 2010 was $3.5 million, compared to $2.9 million for the prior year period, a twenty percent increase. Operating performance at the Phoenix APU businesses improved to a small profit for the quarter.
Commenting on the company's performance and its outlook, Richard C. Ill, Triumph's Chairman and Chief Executive Officer, said, "In light of current market conditions, we are pleased with our performance in our second quarter. We continue to control costs and strengthen our balance sheet with strong cash generation and working capital management. Despite the uncertain and inconsistent operating environment, we continue to see opportunities for our company to grow and improve, such as the recently announced development award on the Sikorsky CH-53K aircraft."
"Based on current projected aircraft production rates and our existing share count, we are maintaining our prior guidance that earnings per share from continuing operations for the current fiscal year will be approximately $5.00 per diluted share."
As previously announced, Triumph Group will hold a conference call tomorrow at 8:30 a.m. (ET) to discuss the fiscal year 2010 second quarter results. The conference call will be available live and archived on the company's website at http://www.triumphgroup.com. A slide presentation will be included with the audio portion of the webcast. An audio replay will be available from October 27th until November 3rd by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1404070.
Triumph Group, Inc., headquartered in Wayne, Pennsylvania, designs, engineers, manufactures, repairs and overhauls aircraft components and accessories. 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 expectations of future aerospace market conditions, the impact of new contracts, aircraft production rates, financial and operational performance, revenue and earnings growth, and earnings results for fiscal 2010. 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, 2009.
SOURCE: Triumph Group, Inc.
Triumph Group, Inc.