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

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

-- Net sales for the second quarter fiscal 2009 increased 16% to
$323.4 million

-- Operating income for the second quarter fiscal 2009 increased
34% to $42.7 million, reflecting an operating margin of 13.2%

-- Earnings per share from continuing operations increased 50% to
$1.57 per diluted share

-- Net income per share increased 56% to $1.50 per diluted share

-- Cash flow from operations more than doubled to $36.1 million
WAYNE, Pa.--(Business Wire)--
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 24th until
October 31st 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.

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(in thousands, except per share data)

Three Months Ended Six Months Ended
September 30, September 30,
------------------- --------------------

CONDENSED STATEMENTS OF
INCOME 2008 2007 2008 2007
--------- --------- --------- ---------

Net Sales $323,391 $279,772 $643,947 $554,776

Operating Income 42,714 31,843 86,042 62,097

Interest Expense and Other 3,067 3,566 6,494 6,773
Income Tax Expense 13,578 9,575 27,445 18,811
--------- --------- --------- ---------

Income from Continuing
Operations 26,069 18,702 52,103 36,513
Loss from Discontinued
Operations, net of tax (1,093) (1,472) (2,296) (5,366)
--------- --------- --------- ---------

Net Income $ 24,976 $ 17,230 $ 49,807 $ 31,147
========= ========= ========= =========

Earnings Per Share - Basic:

Income from Continuing
Operations $ 1.59 $ 1.13 $ 3.18 $ 2.21
Loss from Discontinued
Operations ($0.07) ($0.09) ($0.14) ($0.33)
--------- --------- --------- ---------
Net Income $ 1.52 $ 1.04 $ 3.04 $ 1.89 *
========= ========= ========= =========

Weighted average common
shares outstanding - Basic 16,386 16,524 16,379 16,491
========= ========= ========= =========

Earnings Per Share - Diluted:

Income from Continuing
Operations $ 1.57 $ 1.05 $ 3.14 $ 2.08
Loss from Discontinued
Operations ($0.07) ($0.08) ($0.14) ($0.31)
--------- --------- --------- ---------
Net Income $ 1.50 $ 0.97 $ 3.00 $ 1.78 *
========= ========= ========= =========

Weighted average common
shares outstanding - Diluted 16,607 17,827 16,619 17,539
========= ========= ========= =========

Dividends declared and paid
per common share $ 0.04 $ 0.04 $ 0.08 $ 0.08
========= ========= ========= =========

* Difference due to rounding.

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)

BALANCE SHEET
September 30, March 31,
2008 2008
------------- -----------
Assets
Cash $ 13,065 $ 13,738
Accounts Receivable, net 190,807 207,975
Inventory 382,117 361,667
Deferred Income Taxes 1,130 1,450
Assets Held for Sale 26,253 24,763
Prepaid Expenses and Other 6,651 5,207
------------- -----------
Current Assets 620,023 614,800

Property and Equipment, net 327,849 324,095
Goodwill 383,939 383,740
Intangible Assets, net 72,480 78,488
Other 15,192 13,712
------------- -----------

Total Assets $ 1,419,483 $1,414,835
============= ===========

Liabilities & Stockholders' Equity

Accounts Payable $ 92,624 $ 120,117
Accrued Expenses 85,173 83,397
Liabilities Related to Assets Held for
Sale 4,389 4,587
Income Taxes Payable 856 1,509
Current Portion of Long-Term Debt 4,548 1,010
------------- -----------
Current Liabilities 187,590 210,620

Long-Term Debt, less current portion 389,204 418,803
Income Taxes Payable, non-current 1,463 1,437
Deferred Income Taxes and Other 100,904 91,246

Stockholders' Equity:
Common Stock, $.001 par value,
50,000,000 shares authorized,
16,580,337 and 16,517,374 shares issued 16 16
Capital in excess of par value 289,816 288,154
Treasury Stock, at cost, 189,679 and
213,950 shares (10,552) (12,003)
Accumulated other comprehensive income 2,289 2,950
Retained earnings 458,753 413,612
------------- -----------
Total Stockholders' Equity 740,322 692,729
------------- -----------

Total Liabilities and Stockholders' Equity $ 1,419,483 $1,414,835
============= ===========

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

SEGMENT DATA Three Months Ended Six Months Ended
September 30, September 30,
------------------- -------------------

2008 2007 2008 2007
--------- --------- --------- ---------

Net Sales:
Aerospace Systems $257,569 $220,511 $515,801 $437,791
Aftermarket Services 66,481 60,054 129,449 118,367
Elimination of inter-segment
sales (659) (793) (1,303) (1,382)
--------- --------- --------- ---------
$323,391 $279,772 $643,947 $554,776
========= ========= ========= =========

Operating Income (Loss):
Aerospace Systems $ 46,515 $ 31,135 $ 92,585 $ 61,464
Aftermarket Services 2,896 4,825 6,783 10,553
Corporate (6,697) (4,117) (13,326) (9,920)
--------- --------- --------- ---------
$ 42,714 $ 31,843 $ 86,042 $ 62,097
========= ========= ========= =========

Depreciation and Amortization:
Aerospace Systems $ 8,787 $ 7,353 $ 17,390 $ 14,611
Aftermarket Services 3,532 3,034 7,035 6,236
Corporate 66 70 133 133
--------- --------- --------- ---------
$ 12,385 $ 10,457 $ 24,558 $ 20,980
========= ========= ========= =========

Capital Expenditures:
Aerospace Systems $ 8,757 $ 6,531 $ 17,911 $ 13,657
Aftermarket Services 4,335 5,034 6,482 7,331
Corporate 425 134 487 545
--------- --------- --------- ---------
$ 13,517 $ 11,699 $ 24,880 $ 21,533
========= ========= ========= =========

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

Non-GAAP Financial Measure Disclosures

Earnings before Interest, Taxes, Depreciation and Amortization
("EBITDA") for the three months ended September 30, 2008 was $55.1
million with a margin of 17.0%. EBITDA for the three months ended
September 30, 2007 was $42.3 million with a margin of 15.1%. EBITDA
for the six months ended September 30, 2008 was $110.6 million with a
margin of 17.2%. EBITDA for the six months ended September 30, 2007
was $83.1 million with a margin of 15.0%.

Management believes that EBITDA provides the reader a good measure of
cash generated from the operations of the business before any
investment in working capital or fixed assets.

The following definition is provided for the non-GAAP financial
measure identified above, together with a reconciliation of such non-
GAAP financial measure to the most directly comparable financial
measure calculated and presented in accordance with GAAP.
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Three Months Ended Six Months Ended
September 30, September 30,
------------------- -------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Earnings before Interest,
Taxes, Depreciation and
Amortization (EBITDA):

Income from Continuing
Operations $ 26,069 $ 18,702 $ 52,103 $ 36,513

Add-back:
Income Tax Expense 13,578 9,575 27,445 18,811
Interest Expense and Other 3,067 3,566 6,494 6,773
Depreciation and
Amortization 12,385 10,457 24,558 20,980
--------- --------- --------- ---------

Earnings before Interest,
Taxes, Depreciation and
Amortization ("EBITDA") $ 55,099 $ 42,300 $110,600 $ 83,077

Net Sales $323,391 $279,772 $643,947 $554,776
--------- --------- --------- ---------

EBITDA Margin 17.0% 15.1% 17.2% 15.0%
========= ========= ========= =========

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

Non-GAAP Financial
Measure Disclosures
(continued)

Earnings before
Interest, Taxes,
Depreciation and
Amortization (EBITDA): Three Months Ended September 30, 2008
---------------------------------------------
Segment Data
-----------------------------------
Aerospace Aftermarket Corporate /
Total Systems Services Eliminations
--------- --------- ----------- -------------

Income from Continuing
Operations $ 26,069

Add-back:
Income Tax Expense 13,578
Interest Expense
and Other 3,067
---------

Operating Income
(Expense) $ 42,714 $ 46,515 $ 2,896 ($6,697)

Depreciation and
Amortization 12,385 8,787 3,532 66
--------- --------- ----------- -------------

Earnings (Losses)
before Interest,
Taxes,
Depreciation and
Amortization
("EBITDA") $ 55,099 $ 55,302 $ 6,428 ($6,631)
========= ========= =========== =============

Net Sales $323,391 $257,569 $ 66,481 ($659)
========= ========= =========== =============

EBITDA Margin 17.0% 21.5% 9.7% n/a
========= ========= =========== =============

Earnings before
Interest, Taxes,
Depreciation and
Amortization (EBITDA): Six Months Ended September 30, 2008
---------------------------------------------
Segment Data
-----------------------------------
Aerospace Aftermarket Corporate /
Total Systems Services Eliminations
--------- --------- ----------- -------------

Income from Continuing
Operations $ 52,103

Add-back:
Income Tax Expense 27,445
Interest Expense
and Other 6,494
---------

Operating Income
(Expense) $ 86,042 $ 92,585 $ 6,783 ($13,326)

Depreciation and
Amortization 24,558 17,390 7,035 133
--------- --------- ----------- -------------

Earnings (Losses)
before Interest,
Taxes,
Depreciation and
Amortization
("EBITDA") $110,600 $109,975 $ 13,818 ($13,193)
========= ========= =========== =============

Net Sales $643,947 $515,801 $129,449 ($1,303)
========= ========= =========== =============

EBITDA Margin 17.2% 21.3% 10.7% n/a
========= ========= =========== =============

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

Non-GAAP Financial
Measure Disclosures
(continued)

Earnings before
Interest, Taxes,
Depreciation and
Amortization
(EBITDA): Three Months Ended September 30, 2007
---------------------------------------------
Segment Data
-----------------------------------
Aerospace Aftermarket Corporate /
Total Systems Services Eliminations
--------- --------- ----------- -------------

Income from Continuing
Operations $ 18,702

Add-back:
Income Tax Expense 9,575
Interest Expense and
Other 3,566
---------

Operating Income
(Expense) $ 31,843 $ 31,135 $ 4,825 ($4,117)

Depreciation and
Amortization 10,457 7,353 3,034 70
--------- --------- ----------- -------------

Earnings (Losses)
before Interest,
Taxes, Depreciation
and Amortization
("EBITDA") $ 42,300 $ 38,488 $ 7,859 ($4,047)
========= ========= =========== =============

Net Sales $279,772 $220,511 $ 60,054 ($793)
========= ========= =========== =============

EBITDA Margin 15.1% 17.5% 13.1% n/a
========= ========= =========== =============

Earnings before
Interest, Taxes,
Depreciation and
Amortization
(EBITDA): Six Months Ended September 30, 2007
---------------------------------------------
Segment Data
-----------------------------------
Aerospace Aftermarket Corporate /
Total Systems Services Eliminations
--------- --------- ----------- -------------

Income from Continuing
Operations $ 36,513

Add-back:
Income Tax Expense 18,811
Interest Expense and
Other 6,773
---------

Operating Income
(Expense) $ 62,097 $ 61,464 $ 10,553 ($9,920)

Depreciation and
Amortization 20,980 14,611 6,236 133
--------- --------- ----------- -------------

Earnings (Losses)
before Interest,
Taxes, Depreciation
and Amortization
("EBITDA") $ 83,077 $ 76,075 $ 16,789 ($9,787)
========= ========= =========== =============

Net Sales $554,776 $437,791 $118,367 ($1,382)
========= ========= =========== =============

EBITDA Margin 15.0% 17.4% 14.2% n/a
========= ========= =========== =============

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

Non-GAAP Financial Measure Disclosures (continued)

Management believes that "Net Debt to Capital" provides the reader a
good measure of financial leverage. The following table sets forth
the computation of Net Debt to Capital:

September 30, March 31,
2008 2008
-------------- --------------

Calculation of Net Debt
----------------------------------------
Current Portion $ 4,548 $ 1,010
Long-term debt 389,204 418,803
-------------- --------------
Total Debt 393,752 419,813
Less: Cash 13,065 13,738
-------------- --------------
Net Debt $ 380,687 $ 406,075
============== ==============

Calculation of Capital
----------------------------------------
Net Debt $ 380,687 $ 406,075
Stockholders' equity 740,322 692,729
-------------- --------------
Total Capital $ 1,121,009 $ 1,098,804
============== ==============

Percent of Net Debt to Capital 34.0% 37.0%

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Triumph Group, Inc.
Sheila Spagnolo
Vice President
610-251-1000
sspagnolo@triumphgroup.com

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