Triumph Group, Inc. TGI today announced that it expects to record
pre-tax additional program costs during fiscal year 2014 totaling
approximately $68.0 million, or $0.83 per diluted share, primarily associated
with the 747-8 program. Of the total incremental costs, approximately $44.0
million, or $0.53 per diluted share, will be included in the company's second
quarter fiscal year 2014 financial results. The company expects that
approximately $11.0 million, or $0.14 per diluted share, will be reflected in
third quarter fiscal year 2014 and the remaining $13.0 million, or $0.16 per
diluted share, will be included in the fourth quarter fiscal year 2014
financial results. The number of shares used in computing diluted earnings per
share was approximately 53.0 million shares.
These amounts have resulted from reductions to the profitability estimates of
the company's current 747-8 production lot, which will be approximately 80%
completed by the end of the company's second quarter fiscal year 2014 and is
expected to be nearly 100% completed by the end of the third quarter fiscal
year 2014. As a result of the current cost levels, the expected profitability
on the next production lot, which will begin delivery in the fourth quarter of
fiscal year 2014, was also decreased. Both current and future production lots
are expected to be profitable and not result in loss reserves.
The company will update its fiscal year 2014 guidance when it reports its
second quarter fiscal year 2014 results.
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