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Triumph Group Reports Second Quarter Fiscal 2004 Results

WAYNE, Pa.--(BUSINESS WIRE)--Oct. 30, 2003--For the second quarter of fiscal 2004, Triumph Group, Inc. (NYSE:TGI) delivered solid results despite difficult market conditions.

Sales from continuing operations for the second quarter of fiscal 2004 totaled $145.1 million, a three percent increase from last year's second quarter sales of $141.3 million. Income from continuing operations was $7.9 million, or $0.50 per diluted common share compared to $9.8 million, or $0.62 per diluted common share for the same period last year. Net income was $7.3 million, or $0.46 per diluted common share, compared to net income of $10.1 million, or $0.63 per diluted common share last year. During the quarter, the Company generated $16.4 million of cash flow from operating activities.

Sales from continuing operations in the first six months of fiscal 2004 were $285.7 million, a two percent increase compared to $281.1 million last year. Income from continuing operations in the first six months of fiscal 2004 was $15.6 million, or $0.98 per diluted common share, compared to $19.5 million, or $1.22 per diluted common share for the same period in fiscal 2003. Net income was $14.4 million, or $0.90 per diluted common share, compared to net income of $20.1 million, or $1.26 per diluted common share in the prior year period.

Richard C. Ill, Triumph's President and Chief Executive Officer, said, "While we continue to be impacted by weak demand and pricing pressures in the aerospace and power generation markets, the results from continuing operations for the second quarter represent a solid performance with increased sales and positive cash flow. Our strong military OEM and aftermarket sales and our ability to maintain market share in the commercial OEM, business and regional jet businesses serve to mitigate the prevailing weakness in the commercial aviation industry."

Mr. Ill further stated, "The current quarter's results include approximately $2.0 million of favorable tax adjustments resulting from the completion of income tax audits through our fiscal year 2000."

"While we continue to operate in a demanding market environment, we remain focused on continuing to improve operational efficiency and reduce costs, expand the products and capabilities we offer to our customers and sustain our strong cash flow to invest in future organic growth." Mr. Ill continued. "As a result of the above-mentioned earnings and our outlook for the balance of the year, we expect fully diluted earnings from continuing operations to be between $2.00 and $2.25 per common share."

Triumph Group, Inc., headquartered in Wayne, Pennsylvania, designs, engineers, manufactures, repairs and overhauls aircraft components and industrial gas turbine components and accessories. The Company serves a broad, worldwide spectrum of the aviation industry, including commercial airlines and air cargo carriers, as well as original equipment manufacturers of aircraft and aircraft components and power generation equipment.

More information about Triumph can be found on the Internet at http://www.triumphgroup.com.

Statements which are not historical facts, including statements regarding the Company's ability to maintain market share, improve efficiencies, reduce costs, expand products and capabilities, sustain cash flow, and achieve earnings within any particular range, are forward-looking statements under the provision of the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and uncertainties including statements regarding the outlook for continued opportunities for future growth. The Company wishes to caution readers that several important factors 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 Form 10-K for the year ended March 31, 2003.


                     FINANCIAL DATA  (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                (in thousands, except per share data)

                               Three Months Ended   Six Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------

CONDENSED STATEMENTS OF INCOME   2003      2002      2003      2002
                               --------- --------- --------- ---------

Net Sales                      $145,116  $141,328  $285,745  $281,117

Operating Income                 12,103    18,623    26,776    36,874

Interest Expense and Other        2,942     3,360     5,775     6,642
Income Tax Expense                1,245     5,419     5,448    10,733
                               --------- --------- --------- ---------

Income from Continuing
 Operations                       7,916     9,844    15,553    19,499
(Loss) Income from Discontinued
 Operations                        (627)      211    (1,184)      602
                               --------- --------- --------- ---------

Net Income                       $7,289   $10,055   $14,369   $20,101
                               ========= ========= ========= =========

Earnings Per Share - Basic:

Income from Continuing
 Operations                       $0.50     $0.62     $0.98     $1.23
(Loss) Income from Discontinued
 Operations                      ($0.04)    $0.01    ($0.07)    $0.04
                               --------- --------- --------- ---------
Net Income                        $0.46     $0.63     $0.91     $1.27
                               ========= ========= ========= =========

Weighted average common shares
 outstanding - Basic             15,836    15,836    15,836    15,827
                               ========= ========= ========= =========

Earnings Per Share - Diluted:

Income from Continuing
 Operations                       $0.50     $0.62     $0.98     $1.22
(Loss) Income from Discontinued
 Operations                      ($0.04)    $0.01    ($0.07)    $0.04
                               --------- --------- --------- ---------
Net Income                        $0.46     $0.63     $0.90(1)  $1.26
                               ========= ========= ========= =========

Weighted average common shares
 outstanding - Diluted           15,904    15,940    15,894    15,965
                               ========= ========= ========= =========

(1) difference due to rounding.

OTHER SELECTED INFORMATION

Continuing Operations:


Depreciation and Amortization    $6,632    $5,824   $13,111   $11,816
                               ========= ========= ========= =========


Capital Expenditures             $7,006    $8,791   $14,217   $13,944
                               ========= ========= ========= =========


                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                            (in thousands)

BALANCE SHEET
                                           September 30,   March 31,
                                               2003          2003
                                           ------------- -------------
                     Assets
Cash                                             $7,174        $8,583
Accounts Receivable, net                        106,707       106,841
Inventory                                       205,599       196,343
Assets held for sale                             26,202        27,883
Prepaids and Other                                6,476         3,549
                                           ------------- -------------
     Current Assets                             352,158       343,199

Fixed Assets, net                               222,455       215,832
Goodwill                                        271,026       260,467
Intangible Assets, net                           28,916        31,055
Other                                            15,432        13,615
                                           ------------- -------------

Total Assets                                   $889,987      $864,168
                                           ============= =============

       Liabilities & Stockholders' Equity

Accounts Payable                                $48,588       $47,466
Accrued Expenses and Other                       42,535        44,808
Liabilities related to assets held for
 sale                                             5,883         6,361
Income Taxes Payable                              4,716         3,231
Deferred Income Taxes                             1,585         1,585
Current Portion of Long-Term Debt                 2,298         7,831
                                           ------------- -------------
     Current Liabilities                        105,605       111,282

Long-Term Debt, less current portion            212,366       191,692
Deferred Income Taxes and Other                  61,542        66,209

Stockholders' Equity:
     Common Stock, $.001 par value,
      50,000,000 shares authorized,
      16,027,324 shares issued                       16            16
Capital in excess of par value                  259,299       258,675
Treasury Stock, at cost, 180,860 and
 183,260 shares                                  (4,490)       (4,549)
Accumulated other comprehensive income              980           543
Retained earnings                               254,669       240,300
                                           ------------- -------------
     Total Stockholders' Equity                 510,474       494,985
                                           ------------- -------------

Total Liabilities and Stockholders'
 Equity                                        $889,987      $864,168
                                           ============= =============


                     FINANCIAL DATA  (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                (in thousands, except per share data)

Non-GAAP Financial Measure Disclosures

Earnings before Interest, Taxes, Depreciation and Amortization
("EBITDA") for the three months ended September 30, 2003 was $18.7
million with a margin of 12.9%. EBITDA for the three months ended
September 30, 2002 was $24.4 million with a margin of 17.3%. EBITDA
for the six months ended September 30, 2003 was $39.9 million with a
margin of 14.0%. EBITDA for the six months ended September 30, 2002
was $48.7 million with a margin of 17.3%.

Management believes that EBITDA provides investors with an important
perspective on the current underlying performance of the business by
identifying non-cash expenses, interest and taxes included in income
from continuing operations.

The following definition is provided for the non-GAAP financial
measure identified above, together with a reconciliation of such
non-GAAP financial measure to the most directly comparable financial
measure calculated and presented in accordance with GAAP.


                                  Three Months Ended  Six Months Ended
                                     September 30,     September 30,
                                   ----------------- -----------------

                                     2003     2002     2003     2002
                                   -------- -------- -------- --------

 Earnings before Interest, Taxes,
   Depreciation and Amortization
             (EBITDA):


Income from Continuing Operations    7,916    9,844   15,553   19,499

Add-back:
     Income Tax Expense              1,245    5,419    5,448   10,733
     Interest Expense and Other      2,942    3,360    5,775    6,642
     Depreciation and Amortization   6,632    5,824   13,111   11,816
                                   -------- -------- -------- --------

Earnings before Interest, Taxes,
 Depreciation
   and Amortization ("EBITDA")      18,735   24,447   39,887   48,690
                                   -------- -------- -------- --------


Net Sales                          145,116  141,328  285,745  281,117
                                   -------- -------- -------- --------

EBITDA Margin                         12.9%    17.3%    14.0%    17.3%
                                   ======== ======== ======== ========

CONTACT: Triumph Group, Inc., Wayne
John Bartholdson, 610-251-1000
jbartholdson@triumphgroup.com
SOURCE: Triumph Group, Inc.