Triumph Group Inc. said it is prepared for additional cuts in
its largest aircraft program even as it maintains confidence in
the planes long-term future.
M. David Kornblatt,
Triumphs executive vice president and chief financial
officer, said a cutback in the monthly build rate of Boeing
Co.s 747 would decrease 2014 earnings by about 10 cents
per share, according to a transcript of the companys
quarterly earnings conference call with securities analysts.
The Berwyn, Pa.-based producer of aerospace components and
systems posted diluted per-share earnings of $1.50 for the
three months ended June 30.
Boeing Co. said in April that it would "adjust"
the production of its 747-8 commercial transport to 1.75 per
month in 2014 from two per month currently as the market for
freighters remains slow.
Triumph president and
chief executive officer Jeffry D. Frisby said the company has
"contingency plans" if the 747 build rate falls further to 1.5
per month, although the company believes the aircraft has "a
long future" and shares Boeings confidence in the
Triumph posted net
income of $79.04 million for its fiscal first quarter ended
June 30, up 3.5 percent from $76.33 million in the same period
a year earlier on sales that rose 6.3 percent to $943.68
Boeing accounted for
45 percent of Triumphs business in the quarter, Kornblatt
said. After the 747, Triumphs next-largest programs in
terms of backlog are the Boeing 777, Boeing C-17 military
transport, Gulfstream 450 and 550 business jets, and Boeing 787
and 737 airliners.
theres "no shortage" of acquisition opportunities, and
Triumph hopes to "get some deals done" this year.
In May, it acquired
the Primus Composites operation of Portland, Ore.-based
Precision Castparts Corp., which has operations in Thailand and
the United Kingdom. The deal is expected to add about $55
million in annual sales, primarily related to aircraft built by
Frances Airbus SAS. In March, Triumph acquired the pump
and engine control business of Goodrich Corp., West Hartford,
Conn., which is expected to bring to bring about $195 million
in annual sales.