Triumph Group
Annual Report 2002

Plain-text annual report

Triumph’s Historical Performance Fiscal Year Ended March 31, Net Sales (in millions) EBITDA (in millions) Net Income (in millions) EPS Diluted ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’96 ’97 ’98 ’99 ’00 ’01 ’02 Amounts for 2002 do not include effect of special charge. Triumph’s Diverse Markets* Aviation Segment Sales $565 Million (92%) Business 11% Regional 6% Industrial Gas Turbine & Other 14% Commercial Aerospace 43% Military & Space 26% *Metals Segment Sales $47 Million (8%) Contents 1 Financial Highlights 2 Shareholder Letter 4 Aftermarket Services Group 5 Structural Components Group 6 Operational Components Group 7 Control Systems Group 8 Gas Turbine Services Group 8 Metals Segment 9 Shareholder Information 9 Executive Officers and Directors 020406080100$12001020304050$600110220330440550$6600.0.701.402.102.80$3.50Component Repair and Overhaul Provides FAA certified overhaul and repair services for a wide range of APUs and accessories for the world’s airlines. John M. Brasch, Group President E-mail: jbrasch@triumphgroup.com Airborne Nacelle Services, Inc. Repairs and overhauls thrust reversers, nacelle components and other aerostructures. Tony McAnly, President Phone: 501-262-1555 E-mail: tmcanly@triumphgroup.com Hot Springs, Arkansas Triumph Accessory Services Provides maintenance services for aircraft heavy accessories and airborne electrical power generation devices, including constant speed drives, integrated drive generators, air cycle machines, and electrical generators. Michael W. Hansen, President Phone: 620-326-2235 E-mail: mhansen@triumphgroup.com Wellington, Kansas Triumph Aftermarket Services Division Provides distribution, exchange and lease programs for APUs, APU components, and components supported by Triumph Accessory Services and Airborne Nacelle. Lee Jacobs, General Manager Phone: 602-470-7226 E-mail: ljacobs@triumphgroup.com Phoenix, Arizona Triumph Air Repair Repairs and overhauls auxiliary power units and supplemental equipment. Richard Wisniewski, President Phone: 602-437-1144 E-mail: rwisniewski@triumphgroup.com Phoenix, Arizona Triumph Air Repair (Europe) Limited Repairs and overhauls auxiliary power units for commercial transport carriers and the commuter aviation industry. John Brasch, General Manager Phone: 011 44 1256 381507 E-mail: jbrasch@triumphgroup.com Lasham Alton Hampshire, England Aftermarket Services Group Instrument Repair and Overhaul Provides FAA certified overhaul and repair services for a wide range of instruments for the world’s airlines. Richard R. Rockwood, Group President E-mail: rrockwood@triumphgroup.com A. Biederman Repairs and overhauls aircraft instruments and avionics and serves as an authorized stocking distributor for a variety of aircraft components. Richard R. Rockwood, President Phone: 818-246-8431 E-mail: rrockwood@triumphgroup.com Glendale, California JDC Company Specializes in the repair, overhaul and exchange of electromechanical and pneumatic aircraft instruments. David G. Vorsas, President Phone: 954-772-4559 E-mail: dvorsas@triumphgroup.com Fort Lauderdale, Florida Phone: 512-218-1900 Austin, Texas Hydro-Mill Co. Machines, welds and assembles large complex precision structural components. Kevin Dahlin, President Phone: 818-341-1314 E-mail: kdahlin@triumphgroup.com Chatsworth, California K-T Corporation Produces aircraft fuselage skins, leading edges and web assemblies through the stretch forming of sheet, extrusion, rolled shape, and light plate metals. Donald E. Kendall, President Phone: 317-398-6684 E-mail: dkendall@triumphgroup.com Shelbyville, Indiana L.A. Gauge Co. Manufactures ultra-precision machined components and assemblies to the aviation, defense and commercial industries. Kevin Dahlin, President James E. Corum, General Manager Phone: 818-767-7193 E-mail: jcorum@triumphgroup.com Sun Valley, California Lee Aerospace, Inc. Manufactures windshields, flight deck and cabin win- dows to the general aviation and corporate jet market. James E. Lee, President Phone: 800-379-6840 E-mail: jlee@triumphgroup.com Wichita, Kansas Northwest Industries Machines and fabricates refractory, reactive, heat and corrosion-resistant precision products. Frederick W. Kuebrich, President Phone: 541-926-5517 E-mail: fkuebrich@triumphgroup.com Albany, Oregon Structural Components Group One of the leading structural component suppliers, Triumph provides a full range of structural components and higher-level assemblies. Robert Perry, Group President E-mail: rperry@triumphgroup.com Aerospace Technologies, Inc. Manufactures and repairs metallic/composite bonded components and assemblies. Robert Perry, President Phone: 817-451-0620 E-mail: rperry@triumphgroup.com Fort Worth, Texas Chem-Fab Corporation Manufactures and processes complex sheet metal parts and assemblies. Tom Butler, President Phone: 501-321-9325 E-mail: tbutler@triumphgroup.com Hot Springs, Arkansas DV Industries, Inc. Provides high-quality finishing services to the aerospace, military, and commercial industries. Peter J. LaBarbera, President Phone: 323-563-1338 E-mail: plabarbera@triumphgroup.com Lynwood, California Nu-Tech Industries, Inc. Manufactures precision machine parts and mechanical assemblies for the aviation, aerospace, and defense industries. Dan L. Phillips, President Phone: 816-763-8600 E-mail: dphillips@triumphgroup.com Grandview, Missouri Ralee Engineering Company Manufactures long structural components such as stringers, cords, floor beams and spare parts for the aviation industry. Kevin Dahlin, President Phone: 626-965-1630 E-mail: kdahlin@triumphgroup.com City of Industry, California Triumph Wichita Support Center Provides commercial, technical, and logistics support for Triumph Group companies and Wichita based customers. James E. Lee, President Phone: 316-636-9200 E-mail: jlee@triumphgroup.com Wichita, Kansas Operational Components Group Control Systems Group Gas Turbine Services Group A leader in the design, engineering, original equip- ment manufacture, repair and overhaul of aircraft and industrial gas turbine engine components. William J. Hinz, Group President E-mail: whinz@triumphgroup.com Designs, develops, manufactures and repairs mechanical, electromechanical and hydraulic systems for a broad international customer base. Jeffry D. Frisby, Group President E-mail: jfrisby@triumphgroup.com Provides repair services, aftermarket parts and services to utility operators, independent power producers, and third-party overhaul facilities. William J. Hinz, Group President E-mail: whinz@triumphgroup.com Advanced Materials Technologies, Inc. Repairs and manufactures components for auxiliary power units and gas turbine engines. James Nordstrom, President Phone: 602-438-8760 E-mail: jnordstrom@triumphgroup.com Tempe, Arizona DG Industries, Inc. Specializes in precision machining of aerospace components. William Rogers, General Manager Phone: 602-233-0355 E-mail: wrogers@triumphgroup.com Phoenix, Arizona Stolper-Fabralloy Co. Designs and manufactures gas turbine engine sheet metal components with a broad range of processing options from aluminum and titanium to super high temp alloys. William J. Hinz, President Phone: 602-220-4416 E-mail: whinz@triumphgroup.com Phoenix, Arizona Phone: 262-786-3400 Brookfield, Wisconsin Triumph Components – San Diego, Inc. Produces close tolerance, complex sheet metal assemblies made from all types of aerospace materials using forming and joining techniques. Paul Aube, General Manager Phone: 619-440-2504 E-mail: paube@triumphgroup.com San Diego, California Triumph Engineering Services, Inc. Specializes in the design and reverse engineering of aerospace and industrial components for OEM manufacture and repair. Joe Anthony Saenz,General Manager Phone: 480-227-3432 E-mail: asaenz@triumphgroup.com Phoenix, Arizona Triumph Precision Inc. Specializes in tube bending, machining, and thermal spray coatings for the aerospace, gas turbine, and industrial markets. Wayde Patton, General Manager Phone: 602-269-7551 E-mail: wpatton@triumphgroup.com Phoenix, Arizona ACR Industries, Inc. Manufacturers complex geared assemblies, gears and other components, servicing the aerospace industry. Gregory Blanchard, President Phone: 586-781-2800 E-mail: gblanchard@triumphgroup.com Macomb, Michigan Constructions Brevetees d’Alfortville (C.B.A.) Manufactures mechanical ball bearing control assemblies for the aerospace, ground transportation, defense and marine industries. Michel Pommey, President Phone: 011 331 4375 2053 E-mail: mpommey@triumphgroup.com Paris, France EFS Aerospace, Inc. Designs, manufactures, and repairs complex hydraulic and hydromechanical aircraft components and systems such as accumulators, actuators and complex valve packages. Richard Fritch, President Phone: 661-295-1015 E-mail: rfritch@triumphgroup.com Valencia, California Frisby Aerospace, Inc. Designs, manufactures, and repairs complex hydraulic and hydromechanical aircraft components and systems such as variable displacement pumps and motors, linear actuators, and valves. Jeffry D. Frisby, President Phone: 336-766-9036 E-mail: jfrisby@triumphgroup.com Clemmons, North Carolina Phone: 516-378-0162 Freeport, New York HTD Aerospace, Inc. Manufactures precision components and assemblies for commercial and military jet engines. Thomas Holzthum, President Phone: 860-242-5568 E-mail: tholzthum@triumphgroup.com Bloomfield, Connecticut Phone: 860-739-4926 East Lyme, Connecticut Triumph Controls, Inc. Designs and manufactures mechanical and electromechanical control systems. William Bernardo, President Phone: 215-699-4861 E-mail: wbernardo@triumphgroup.com North Wales, Pennsylvania Triumph Industrial Gas Turbine Services, Inc. Provides repair services and aftermarket parts and services to utility operators, independent power producers and third-party overhaul facilities. Allen Bracket, General Manager Phone: 602-272-1331 E-mail: abracket@triumphgroup.com Phoenix, Arizona Triumph Precision Castings Co. Produces complex investment castings of turbine blades and vanes for gas turbine engines. Richard Ransom, General Manager Phone: 520-796-6300 E-mail: rransom@triumphgroup.com Chandler, Arizona Triumph Thermal Processing Company Provides high temperature coatings, chemical stripping, fluoride ion cleaning, hot isostatic pressing and heat treatments for hot section, gas turbine components. Chuck Banner, General Manager Phone: 520-796-3000 E-mail: cbanner@triumphgroup.com Chandler, Arizona Metals Segment Distributes, processes, and converts metal products. John W. Malec, Group President E-mail: jmalec@triumphgroup.com Kilroy Steel, Inc. Erects structural steel frameworks. Nick Dorony, President Phone: 216-883-3000 E-mail: ndorony@triumphgroup.com Cleveland, Ohio TriWestern Metals Co. Develops, produces and markets specialty electrogalvanized products and flat rolled products. John W. Malec, President Phone: 773-434-5800 E-mail: jmalec@triumphgroup.com Chicago, Illinois Bridgeview, Illinois Triumph Group, Inc. Financial Highlights ($ in thousands, except per share data) Results for Year: Mar 96 Mar 97 Mar 98 Mar 99 Mar 00 Mar 01 Mar 02 ** Sales $186,774 $250,478 $329,458 $400,108 $441,699 $560,615 $612,770 Earnings before Interest, Taxes, Depreciation & Amortization % of Sales $ 19,746 11% $ 33,680 13% Depreciation and Amortization Pro forma Depreciation and Amortization * $ 3,535 $ 3,377 $ $ 6,073 5,353 Operating Income % of Sales Pro forma Operating Income * % of Sales Net Income % of Sales Pro forma Net Income * % of Sales EPS - diluted Pro forma EPS - diluted * $ 16,211 9% $ 16,369 9% $ 9,690 5% $ 9,782 5% $ $ 1.37 1.39 Weighted Shares - diluted (in thousands) 6,514 Cash Flow from Operations Capital Expenditures $ 16,101 $ 1,897 $ 27,607 11% $ 28,327 11% $ 11,077 4% $ 11,538 4% 1.09 1.15 $ $ $ $ $ 52,674 16% $ 9,148 $ 7,647 $ 43,526 13% $ 45,027 14% $ 24,612 7% $ 25,725 8% $ $ 2.19 2.29 $ 72,958 18% $ 14,386 $ 10,799 $ 58,572 15% $ 62,159 16% $ 33,147 8% $ 35,843 9% $ $ 2.62 2.83 $ 81,410 18% $107,684 19% $111,286 18% $ 19,737 $ 14,469 $ 26,190 $ 19,065 $ 21,710 $ 21,710 $ 61,673 14% $ 66,941 15% $ 34,602 8% $ 38,732 9% $ 81,494 15% $ 88,619 16% $ 39,214 7% $ 44,506 8% $ 89,576 15% $ 89,576 15% $ 52,655 9% $ 52,655 9% $ $ 2.79 3.12 $ $ 3.11 3.52 $ $ 3.31 3.31 8,146 11,231 12,646 12,397 12,629 15,918 8,149 $ 13,579 $ 34,196 $ 36,660 $ 26,223 $ 77,826 8,183 $ 14,220 $ 19,489 $ 14,736 $ 27,073 $ 32,642 Year-End Position: Working Capital Current Ratio $ 60,379 2.3 $ 56,288 2.4 $ 92,171 2.6 $ 93,457 2.1 $123,001 2.4 $174,326 2.4 $181,725 2.6 Property & Equipment at cost Property & Equipment, net $ 43,270 $ 36,552 $ 59,453 $ 48,349 $ 94,728 $ 78,829 $131,769 $107,123 $161,318 $122,787 $207,484 $157,519 $242,502 $176,061 Cash $ 539 $ 993 $ 4,642 $ 4,953 $ 6,279 $ 4,819 $ 6,913 Debt, net of Cash Stockholders’ Equity Capital Net Debt to Capital Ratio $ 98,230 $ 15,065 $113,295 87% $ 23,399 $ 91,413 $114,812 20% $ 29,856 $182,879 $212,735 14% $ 88,055 $214,777 $302,832 29% $132,529 $244,370 $376,899 35% $171,503 $389,891 $561,394 31% $151,343 $453,501 $604,844 25% Book Value per Common Share $ 2.31 $ 9.38 $ 15.37 $ 18.13 $ 20.94 $ 25.38 $ 28.67 Employees Sales per Employee 1,629 115 $ 1,480 169 $ 2,071 159 $ 2,506 160 $ 2,736 161 $ 3,601 156 $ 3,679 167 $ * Results reflected as if SFAS 142 had been adopted ** Before Special Charge of $5,044 pretax 1 Fellow Shareholders During Fiscal 2002, Triumph completed its sixth year as a publicly traded company. Our goal from the very beginning was to grow our company and reach $500 million in sales by the year 2000, to be a supplier of choice in the aviation industry, and to focus our business on serving both the OEM and repair and overhaul segments. We believe the achievement of our goal as well as our strong fiscal 2002 performance are due to our strict adherence to the original strategies as stated in our first annual report. They were: ■ to add products and services, ■ to expand operating capacity, ■ to acquire aggressively, ■ to market our complete capabilities, and finally, ■ to increase our international presence. To reiterate, we never wavered from our goals, our vision, and our strategy and strongly believe that this commitment and focus has benefited our shareholders through solid, steady growth in sales, earnings, and return on shareholders equity. We have augmented these core strategies with annual initiatives as the conditions required. We are currently concentrating on taking cost out of our system and using inter-company best practice teams to simply get better at what we do while continuing to increase market share. A key to our success is the quality of our employees and the depth of our manage- ment team. We value the years of industry experience along with the highest levels of integrity, talent, and professionalism our employees bring to Triumph. Our culture an extremely important is 2 Richard C. Ill, President and Chief Executive Officer part of Triumph Group and it is critical that our employees embrace a culture that provides our companies with an operational freedom not found in many companies. This commitment to our culture is evident throughout our decision making. For example, a few years ago, in response to both current and anticipated growth as well as in response to customers’ needs, we realigned our organi- zation along an operating group structure. Each of our Group Presidents was promoted from an existing company president position. This is not only a testament to the quality of our employees, but evidence of our commitment to the culture, which encourages growth from within. We have always stressed the importance of protecting the integrity of our individual companies and the products and services they provide while affording them the advantages of being part of a large group. This philosophy clearly applies to acquisition candidates as well. When we acquire a company, we purchase more than just fixed assets. We focus on the management capabilities, technical expertise, and relationships with the customer base because the potential acquisition needs to fit our core strategies. This was especially evident with the acquisition of EMCO Fluid Systems (acquired October, 2001), which was subsequently renamed EFS Aerospace, Inc. and became a part of our Control Systems Group. The addition of EFS has enabled Triumph to further leverage its existing line of proprietary hydraulic products, while at the same time obtain excellent and committed people. Triumph’s commitment to expand operating capacity is evident through our capital investment in a casting facil- ity for the Gas Turbine Services Group. During the year, our new state of the art casting facility became operational and shipped its first product. The casting facility, along with a new building for Triumph Industrial Gas Turbine Services, will enable this important group to continue to grow. During fiscal 2002, we invested $33 million in capital expenditures and during fiscal 2003, we will again commit approximately $30 million toward by Airbus to provide the Cargo Door Actuation System for the A380 aircraft along with our continuing business in Europe and Asia demonstrates our ability to meet the needs of an international customer base. Six years ago less than 4% of our business was military, today almost 30% of our business is military. Two military programs, the C-17 transport aircraft and the F-18 fighter are currently among our top five programs. Our position on key military programs is a great example of our diversity and flexibility, which allows us to withstand the aerospace industry by responding quickly and effectively to shifts in the market. the cyclical pressures inherent in This past year has left many of us with a feeling of uncertainty. Our country, our industry and each and every one of us has, in some way, been impacted by the events surrounding September 11th. In our industry, the aircraft manufacturers announced reduced or deferred build rates and many airlines removed planes from service. Like any company we will continue to face challenges, but I am very optimistic about the future. Much like the unwavering focus we’ve shown toward our vision and strategy, we remain committed to our goal of growing our company to over $1 billion in sales. I firmly believe in our people, and our strategies which, along with our business philosophy and our commitment to our customers will enable Triumph to enhance its position in the aerospace industry. Operating and Financial Review For the twelve months ended March 31, 2002, net sales were a record $613 million or an increase of nine percent over fiscal revenues of $561 million. Operating income was $90 million, an increase of ten percent over operating income of $81 million for fiscal 2001. Net income for the period was $53 million, an increase of 34 percent over the prior comparable period earnings of $39 million. Fully diluted earnings per share was $3.31 versus $3.11 for the prior period. Average shares for fiscal 2002 were 16 million, a 26 percent increase over the 13 million average shares for fiscal 2001. Debt to capital at March 31, 2002 was 25% versus 31% at 2001 year-end. Acquisitions included EFS Aerospace, Inc. during fiscal 2002 and certain assets of Ozone Industries, Inc. subsequent to fiscal year-end, expanding Triumph’s products, services, capabilities and customer base. Our strong balance sheet along with a consistently improving operating trend, have enabled us to invest in our individual companies and expand our products, services and processes. 3 Aftermarket Services Group The Aftermarket Services Group consists of two subgroups: Instrument Repair and Overhaul and Component Repair and Overhaul. Instrument Repair and Overhaul The Instrument Group provides repair, overhaul, exchange and sales of aircraft instruments. Specialties include navigation, flight, and engine monitoring instruments. The product offering also includes autopilots, voice and data recorders, critical airborne smoke detection systems, and aircraft lighting. The group serves as a factory authorized distributor and repair center for many of the leading manufacturers in the aviation community. Our instrument divisions are FAA and JAA approved facilities, and are listed in the registry of the Coordinated Agency for Supplier Evaluation (C.A.S.E.). MARKETS ■ Worldwide commercial airlines ■ Air cargo carriers ■ Regional airlines ■ Corporate business aircraft ■ Helicopters ■ U.S. Military PRODUCTS AND SERVICES ■ Electromechanical and pneumatic aircraft instruments and gauges ■ Aircraft instruments and avionics ■ Stock distributor for aircraft components ■ Warranty services Component Repair and Overhaul The Component Repair and Overhaul companies provide widespread maintenance services for a variety of aircraft components. Capabilities include: Auxiliary Power Units (APU), thrust reversers and major aircraft subsystem components, with the scope ranging from line maintenance activities through and including heavy overhaul. We have the in-house engineering capability to provide extensive refurbishment of component parts through a comprehensive library of FAA approved repairs. MARKETS ■ Worldwide commercial airlines ■ U.S. Military ■ Air cargo carriers ■ Aviation original equipment manufacturers (OEMs) ■ Regional airlines ■ Inventory suppliers PRODUCTS AND SERVICES ■ Auxiliary power units (APUs) & accessories ■ Flight control surfaces ■ Thrust reversers ■ Air cycle machines (ACMs) ■ Constant speed drives (CSDs) ■ Pneumatic system components ■ Factory authorized and/or factory exclusive service centers ■ Distribution, sale, leasing, exchanges, rotables and AOG support ■ Engine accessories ■ Nacelle components ■ Integrated drive generators (IDGs) Above left: CF6-50 Fan reverser used on A300, B747, and DC10 passenger and cargo aircraft. Above right: Horizontal situation indicator provides navigational information. Above: GTCP-131-9 Series APU used on Boeing 737-700/800/900 and MD90 aircraft. 4 Structural Components Group The Structural Components Group performs complex machining processes, structural component forming, and complete metal finishing for the aviation and other industrial markets. This group provides customers with a full range of structural components. We have the capability to produce complete subassemblies and assemblies while incorporating such services as high speed milling, stretch forming, machining, welding, metal bonding, composites and metal finishing. We also fabricate components of aircraft wings, fuselages and cabin windows. Above: Landing gear: drag strut assembly used on Boeing 767. MARKETS ■ Aviation OEMs, MROs, and PMAs ■ U.S. Military ■ Regional jets ■ Business jets ■ Helicopters ■ General aviation market ■ Other industrial markets PRODUCTS AND SERVICES ■ Complex manufacturing processes: Structural bonding and assembly Drop-hammer forming Bladder press forming Chem milling, anodize and paint Metal shearing, forming and rolling fabrication ■ Complex machining capabilities: 3, 4 & 5 axis milling CNC turning MIG/TIG welding Proprietary cutter technology ■ Structural Component Forming: Structural webs Extrusions Longerons Right: Wing hinge flap fitting for Boeing C-17. 5 Operational Components Group The Operational Components Group specializes in the design, engineering, original equipment manufacture and overhaul/repair refurbishment of aircraft and industrial gas turbine engine components. Triumph Operational Components also develops parts manufacturing authority (PMA) on selected aerospace engine components, examples being diffusers and impellers, which give customers the option to lower their costs while maintaining reliability. This group provides a full breadth of products ranging from precision detail machined parts to engine ready complex sheetmetal assemblies to their customers, which include OEM’s and operators. Hot section manufacturing and refurbishment expertise allows these companies to participate in a broad range of gas turbine engine applications consisting of microturbines, commercial/military APU’s, small propulsion engines and large land based gas turbines. Above: Combustion liner and transition assembly used in industrial gas turbines. MARKETS ■ Worldwide commercial airlines ■ Air cargo carriers ■ Aviation OEMS ■ Industrial Gas Turbine OEM’s PRODUCTS AND SERVICES ■ Metal forming (bulge/drop hammer/hydroform) ■ Laser cutting ■ Heat treating ■ Repair and refurbishment of hot section components ■ Tube fabrication ■ E-beam weld ■ Plasma, TBC and HVOF Coatings ■ Tight tolerance machining ■ Brazing ■ Annular and can combustion baskets ■ Transition assemblies ■ Exhaust plug and nozzle assemblies ■ Valve bodies ■ Oil tanks ■ Tube assemblies ■ Turbine plenums ■ Diffusers Electronic Arc Right: Annular combustion chamber for propulsion aircraft. 6 Above: Hydraulic power transfer unit for large commercial aircraft application. Control Systems Group The Control Systems Group designs, engineers, manufactures, services, repairs and overhauls complete mechanical, electromechanical and hydromechanical control systems. In many cases this production is based on proprietary design and is manufactured almost entirely within Triumph. Areas of specific expertise include: hydraulic pumps and motors, nose wheel steering systems, linear actuators and valves, precision geared assemblies and detailed gearing, electronic and electromechanical controls, and component and system design. Our companies have provided products for the most demanding aircraft applications such as landing gear control and actuation, steering systems, secondary flight controls and engine gearboxes. MARKETS ■ Major airframe manufacturers ■ Aviation OEMs ■ Worldwide commercial airlines ■ U.S. Military ■ Air cargo carriers ■ Outsourcing manufacturers PRODUCTS AND SERVICES ■ Hydraulic & mechanical actuation systems: Actuators Valves Complete actuation systems Gearboxes Fixed & variable displacement pumps and motors Nose wheel steering units ■ Mechanical / Electromechanical / Hydromechanical Control Systems: Helical cable Ball bearings Quadrants Control boxes Engine controls Cockpit controls: Landing gear Spoilers Flaps ■ Components: Complex housings Shafts Gears Exotic alloy engine components Above: Inlet gearbox for large commercial aircraft engine application. 7 Gas Turbine Services Group Above: LPPS (low pressure plasma spray) application for gas turbine blades. The group provides repair services, aftermarket parts and services to utility operators, independent power producers and third party overhaul facilities. Specific services provided within the group include: chemical, thermal and metalurgically bonded coating processes applied to flight and power generating turbine components for a variety of engine manufacturers, a casting facility with equiax, directionally solidified and single crystal casting capabilities which provides engine ready turbine blades and vanes. Also included in this turbine group is a one-stop facility for the refurbish, repair and coating of combustion liners, transition ducts, blades, vanes and seals which are used in today’s advanced gas turbine engines. MARKETS ■ Utility operators ■ Independent power producers ■ Turbine engine overhaul facilities ■ Gas turbine OEMS PRODUCTS AND SERVICES ■ 4 Axis EDM ■ STEM Drilling ■ Welding processes include: Gas tungsten arc welding – standard and pulsed Gas and shielded metal arc welding Atmosphere controlled welding chambers ■ Moment weighing and blade set balancing ■ Vacuum heat treating ■ LPPS, plasma and HVOF coatings ■ Two hot-isostatic pressing (HIP) units ■ Equiax, directionally solidified and single crystal castings ■ High temperature diffusion coatings ■ Plasma spray coatings ■ Fluoride ion cleaning, acid stripping and electro-chemical stripping of coating Metals Segment Above: Brightly polished electrogalvanized coils used in the electronic components industry. The Metals Group processes, converts and distributes steel and steel products including electrogalvanized steel products, which are stamped, formed, welded, painted, and coated for use in the electronic, computer, and other durable goods industries. Triumph’s steel service center specializes in flat rolled products and processing, which includes hot or cold rolled sheet, coil and electrogalvanized sheet used primarily by the home and office products and appliance industries. Triumph also erects structural framework, including steel members and allied materials, for buildings and bridges, specializing in commercial and industrial buildings. 8 Shareholder Information Triumph Group, Inc. Corporate Headquarters 1255 Drummers Lane Suite 200 Wayne, PA 19087 (610) 975-0420 www.triumphgroup.com Annual Meeting July 15, 2002, 9:30 a.m. 1255 Drummers Lane, Wayne, PA 19087 Financial Information A copy of the Company’s Form 10-K filed with the Securities and Exchange Commission may be obtained without charge upon written request. Requests for Triumph Group, Inc.’s 10-K or other shareholder inquiries should be directed to: John R. Bartholdson Senior Vice President, Chief Financial Officer Triumph Group, Inc. 1255 Drummers Lane Suite 200 Wayne, PA 19087 (610) 975-0420 Fiscal 2002 Stock Prices Per Common Share High Low Year-End $ 49.30 $ 22.90 $ 39.20 Common Stock Triumph Group, Inc. Common stock is listed on the NYSE. Ticker symbol: TGI Independent Auditors Ernst & Young LLP 2001 Market Street Suite 4000 Philadelphia, PA 19103 Transfer Agent National City Bank Corporate Trust Operations P.O. Box 92301 Cleveland, OH 44193-0900 (888) 843-5542 E-mail: shareholder.inquiries@nationalcity.com Equal Opportunity at Triumph Triumph Group, Inc. is committed to providing equal opportunities in the workplace. Executive Officers and Directors Executive Officers Richard C. Ill President and Chief Executive Officer John R. Bartholdson Senior Vice President, Chief Financial Officer and Treasurer Directors Richard M. Eisenstaedt Vice President, General Counsel and Secretary Kevin E. Kindig Vice President and Controller Lawrence J. Resnick Vice President William O. Albertini Executive Vice President Chief Financial Officer Bell Atlantic Global Wireless, Inc. (Retired) John R. Bartholdson Senior Vice President, Chief Financial Officer and Treasurer Triumph Group, Inc. Richard C. Gozon Executive Vice President, Weyerhaeuser Company (Retired) Richard C. Ill President and Chief Executive Officer, Triumph Group, Inc. Claude F. Kronk Vice Chairman and Director, J & L Specialty Steel, Inc. (Retired) Joseph M. Silvestri Vice President, Citicorp Venture Capital, Ltd. 9 1255 Drummers Lane, Suite 200 Wayne, Pennsylvania 19087 www.triumphgroup.com TMTriumph Group, Inc.

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