WAYNE, Pa.--(BUSINESS WIRE)--Jan. 6, 2005--Triumph Group, Inc.
(NYSE:TGI) announced today that it has sold the remaining Metals Group
assets of its discontinued operations, TriWestern Metals Company, to
Esmark, Inc. in Chicago Heights, Illinois. TriWestern Metals, located
in Chicago and Bridgeview, Illinois, develops, produces and markets
electro-galvanized and flat rolled products and will be operating as
Great Western Steel Company, LLC and ECT Bridgeview, LLC.
The sale was completed for cash as of the end of the quarter and
will result in an after-tax loss of approximately $6 million, which
will be included in the results of discontinued operations for the
quarter, and will generate approximately $15 million in cash. Proceeds
will be used to pay down debt.
Commenting on the announcement, Richard C. Ill, Triumph's
President and Chief Executive Officer, said, "We value the positive
contribution that the employees at the Metals Group made to our
company in the past and wish them well under their new ownership."
Esmark's Chief Executive Officer, James P. Bouchard, stated, "The
acquisition of TriWestern is an excellent strategic fit with our
existing Chicago based assets, and supports our plan to lead the
consolidation of the Midwest steel services marketplace."
Triumph also stated that it has substantially completed its
previously announced plan to exit the IGT business. All operations at
the Phoenix Manufacturing Division of its subsidiary, Triumph
Engineered Solutions, Inc., ceased as of December 31, 2004. In
connection with the shutdown, the company sold for cash some of the
assets at net book value; the remaining assets and backlog associated
with the commercial aerospace business was transferred to other
Triumph facilities. In addition, assets of the IGT Repair Division
were sold to Phoenix Turbine Services, Inc. at net book value. Also, a
definitive agreement to sell the assets of the Wisconsin Manufacturing
Division of Triumph Engineered Solutions to a subsidiary of
FastenTech, Inc. was signed and is expected to close by the end of
February. The costs associated with these steps will not exceed the
previously announced range of up to $4.0 million.
Mr. Ill further stated, "With the completion of the sale of
TriWestern Metals' assets and the majority of our restructuring steps
accomplished in exiting the IGT business, we are focused on continuing
to grow our core aviation businesses. We appreciate the dedicated
efforts that the employees at the affected companies have made and
wish them well in their future endeavors."
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 aircraft and aircraft components as well as
commercial, military and air cargo customers.
More information about Triumph can be found on the Internet at
Statements in this release that are not historical facts are
forward-looking statements under the provisions of the Private
Securities Litigation Reform Act of 1995. 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, 2004.
CONTACT: Triumph Group, Inc., Wayne
John Bartholdson, 610-251-1000
SOURCE: Triumph Group, Inc.