Triumph Group Slashes 2014 EPS Outlook As Q3 Results Miss View

(RTTNews) - Aircraft components maker Triumph Group, Inc. (TGI) reported Tuesday a profit for the third quarter that more than halved from last year, despite sales growth, reflecting higher charges and expenses.

Adjusted earnings per share from continuing operations and quarterly revenues also missed analysts' expectations. The company also slashed its earnings guidance for the full-year 2014, while now projecting annual revenues at the low end of prior forecast range.

"Triumph delivered a solid performance in our third quarter with the exception of the 747-8 program. In spite of military sales decline and continued military aftermarket weakness coupled with some significant customer deferrals, the Aerospace Systems Group and the Aftermarket Services Group were able to sustain their strong operating margins," President and CEO Jeffry Frisby said in a statement.

The Berwyn, Pennsylvania-based company reported net income of $35.39 million or $0.67 per share for the third quarter, sharply lower than $75.22 million or $1.43 per share in the prior-year quarter.

Excluding items, adjusted income from continuing operations for the quarter was $52.18 million or $0.99 per share, compared to $76.67 million or $1.46 per share in the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $1.19 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 3 percent to $915.82 million from $890.57 million in the same quarter last year, but missed sixteen Wall Street analysts' consensus estimate of $966.56 million.

Organic sales for the quarter decreased 6 percent, primarily due to production rate cuts on the 747-8 and 767 programs, a decrease in military sales and customer deferrals.

Aerostructures segment net sales declined 6 percent to $637 million, while aerospace systems net sales surged 50 percent to $211 million from last year. Aftermarket Services net sales declined 7 percent to $70 million from last year.

Operating income for quarter decreased 37 percent to $84.78 million, reflecting an operating margin of 9 percent.

Looking ahead to fiscal 2014, the company slashed its adjusted earnings from continuing operations guidance to about $4.75 per share from the prior forecast of about $5.25 per share. However, the company now projects revenues at the low end of the prior guidance at $3.80 billion.

Street is currently looking for full-year 2014 earnings of $5.24 per share, on annual revenues of $3.89 billion.

TGI closed Tuesday's regular trading session at $77.42, down $0.11 or 0.14% on a volume of 0.62 million shares.