Triumph Group Reports Record Second Quarter Fiscal 2009 Earnings; Raises Fiscal Year 2009 Guidance

Triumph Group, Inc. (NYSE:TGI) today reported that net sales for the second quarter of fiscal year ending March 31, 2009 totaled $323.4 million, a sixteen percent increase from last year’s second quarter net sales of $279.8 million. Income from continuing operations for the second quarter of fiscal year 2009 increased thirty-nine percent to $26.1 million, or $1.57 per diluted share, versus $18.7 million, or $1.05 per diluted share, for the second quarter of the prior fiscal year. Net income for the second quarter of fiscal year 2009 increased forty-five percent to $25.0 million, or $1.50 per diluted share, versus $17.2 million, or $0.97 per diluted share, for the second quarter of the prior fiscal year. The number of shares used in computing diluted earnings per share for the second quarter of fiscal year 2009 was 16.6 million shares. During the quarter, the company generated $36.1 million of cash flow from operations.

Net sales for the first six months of fiscal year 2009 were $643.9 million, a sixteen percent increase over net sales of $554.8 million last fiscal year. Income from continuing operations for the first six months of fiscal year 2009 increased forty-three percent to $52.1 million, or $3.14 per diluted share. Net income for the first six months of fiscal year 2009 increased sixty percent to $49.8 million, or $3.00 per diluted share. During the six months ended September 30, 2008, the company generated $51.0 million of cash flow from operations.

The Aerospace Systems segment reported net sales for the quarter of $257.6 million compared to $220.5 million in the prior year period, an increase of seventeen percent. Operating income for the second quarter of fiscal year 2009 was $46.5 million, compared to $31.1 million for the prior year period, a forty-nine percent increase. Operating margin increased from fourteen percent in the prior year’s second quarter to eighteen percent. Organic sales growth for the quarter was eleven percent. Operating income for the quarter included $0.7 million of legal expenses associated with the ongoing trade secret litigation. These results were achieved despite lost production due to the work stoppage at Boeing’s Commercial Aircraft division.

The Aftermarket Services segment reported net sales for the quarter of $66.5 million, compared to $60.1 million in the prior year period, an eleven percent increase, all of which was organic. Operating income for the second quarter of fiscal year 2009 was $2.9 million, compared to $4.8 million for the prior year period, a forty percent decrease. Losses at the Phoenix APU operations more than offset substantial improvements at most of the other companies within the segment. Without these losses, operating margin would have been in excess of ten percent.

Richard C. Ill, Triumph’s President and Chief Executive Officer, said, "We had another very strong quarter marked by record sales and operating income, a robust backlog and greatly improved cash generation, which allowed us to reduce borrowings under our revolving credit facility by $22.7 million in the quarter. We are proud of the continued margin improvement in our Aerospace Systems Group. While we are disappointed by the execution at our Phoenix APU business, we have already taken actions, which include a management reorganization and workforce reductions, to improve their profitability and position them for future growth.”

In commenting on the outlook for the fiscal year 2009, Mr. Ill said, "Given our strong results through the first six months and assuming that the Boeing strike lasts through November, we now expect that earnings per share from continuing operations for the fiscal year will be in excess of $5.40 per diluted share, computed on 16.7 million shares.”

As previously announced, Triumph Group will hold a conference call tomorrow at 8:30 a.m. (ET) to discuss the fiscal year 2009 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 24^th until October 31^st by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1292023.

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 duration of the Boeing work stoppage, financial and operational performance, revenue and earnings growth, future operating margins and sales and earnings results for fiscal 2009. 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, 2008.