Triumph Group
Annual Report 2006

Plain-text annual report

2006 Annual Report One name. Many solutions. TRIUMPH GROUP, INC., headquartered in Wayne, Pennsylvania, is a network of 30 highly specialized aerospace manufacturing and service companies, providing integrated systems solutions to the global aerospace market. THE AEROSPACE SYSTEMS GROUP designs, engineers and manufactures components, assemblies and systems for the commercial and military aviation industry. THE AFTERMARKET SERVICES GROUP provides maintenance, repair and overhaul services for commercial airlines, air cargo carriers and the military. Customers access Triumph’s broad portfolio of products, capabilities and solutions through a single point of contact. All companies share the Triumph name and a common commitment to excellence in engineering, manufacturing and service. Triumph Group Fast Facts ▼ Established in 1993 ▼ Completed initial public offering in 1996 ▼ Employs over 4,400 people (including recent acquisitions) ▼ Maintains 46 operations centers, offering highly specialized engineering, production and repair capabilities Strategy ▼ Continually add products and services ▼ Expand operating capacity ▼ Acquire aggressively ▼ Market our complete portfolio of capabilities ▼ Expand international presence Triumph’s strategy has remained unchanged since its founding and is a major source of strength. Values ▼ Integrity ▼ Innovation ▼ Quality ▼ Service All Triumph companies are committed to shared values, a unified vision, and a common identity in the aerospace marketplace. Major Markets 45% Commercial aircraft 33% Military 6% Regional jets 9% Business jets 7% Non-aviation Triumph serves a diversified mix of customers throughout the aerospace industry. No single market segment dominates sales or revenues. Financial Highlights (Dollars in thousands, except per share data) Results for Year: Sales Income from Continuing Operations % of Sales Income Tax Expense Interest Expense & Other Operating Income % of Sales Depreciation & Amortization Earnings before Interest, Taxes, Depreciation & Amortization* % of Sales Net Income % of Sales Earnings per share – Diluted: Income from Continuing Operations (Loss) Income from Discontinued Operations Net Income March 06 $ 760,421 $ 34,515 5% 9,053 12,519 $ 56,087 7% 32,038 $ 88,125 12% $ 34,515 5% March 05 $ 688,485 $ 15,809 2% 4,596 13,025 $ 33,430 5% 30,528 $ 63,958 9% $ 11,428 2% March 04 $ 608,315 $ 19,410 3% 4,991 12,212 $ 36,613 6% 28,237 $ 64,850 11% $ 18,222 3% March 03 $ 565,381 $ 37,576 7% 20,682 12,365 $ 70,623 12% 24,387 $ 95,010 17% $ 36,717 6% March 02 $ 565,343 $ 49,117 9% 22,220 12,773 $ 84,110 15% 20,546 $104,656 19% $ 49,437 9% $ $ 2.15 — 2.15 $ $ 0.99 (0.27) 0.72 $ $ 1.22 (0.07) 1.14 $ $ 2.36 (0.05) 2.31 $ $ 3.09 0.02 3.11 Weighted Shares – Diluted (in thousands) 16,060 15,971 15,918 15,924 15,918 Capital Expenditures Year-End Position: Working Capital Current Ratio Property & Equipment at cost Property & Equipment, net Debt Cash Net Debt Stockholders’ Equity Capital Net Debt to Capital Ratio $ 28,777 $ 18,602 $ 25,446 $ 31,567 $ 29,311 $245,362 2.6 $377,090 $237,325 $161,417 5,698 $155,719 563,703 $719,422 22% $213,858 2.5 $350,249 $234,123 $157,782 4,844 $152,938 526,663 $679,601 23% $257,274 3.1 $343,999 $246,501 $225,847 6,766 $219,081 514,314 $733,395 30% $231,917 3.1 $294,157 $215,832 $199,523 8,583 $190,940 494,344 $685,284 28% $197,933 2.7 $218,665 $159,845 $158,256 6,830 $151,426 453,117 $604,543 25% Book Value per Common Share $ 35.21 $ 33.11 $ 32.43 $ 31.20 $ 28.65 Employees Sales per Employee 4,152 183 $ 3,887 177 $ 3,883 157 $ 3,770 150 $ 3,554 159 $ * Management believes that earnings before interest, taxes, depreciation and amortization (“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. Sales Cash Flow from Operations Backlog EBITDA 565 565 03 02 608 04 688 05 760 06 75 02 65 03 46 04 65 05 40 06 368 475 03 02 513 04 598 05 888 06 105 02 95 03 65 04 64 05 88 06 Increased sales reflect the Strong cash flow from operations – Increasing backlog – the value EBITDA increased 38% over growth of integrated product backed by a healthy balance sheet – of firm orders under contract – fiscal 2005, reflecting the improving and service solutions involving allows Triumph to take advantage of provides the foundation for strong profitability of our aerospace and multiple Triumph companies. emerging opportunities. future growth. aftermarket services business. 1 Fellow Shareholders: On behalf of your management team, I’m pleased to report that the Triumph Group delivered solid performance and outstanding results in fiscal 2006. We not only achieved our financial goals, we strengthened our ability to meet our customers’ needs by linking together our diverse mix of products, services and companies under the Triumph banner. • Sales in fiscal 2006 totaled more than $760 million, a 10% increase over 2005. • Income from continuing operations increased 118% to $34.5 million, with our entire business now focused solely on our core aerospace market. • Earnings per diluted common share more than doubled – from $0.99 in fiscal 2005 to $2.15 in 2006. • During fiscal 2006, our company generated $40.4 million of cash flow from operations. • Backlog, the value of firm orders under contract over the next two years, increased 48% to a record $888 million in fiscal 2006. • Our balance sheet remains exceptionally strong, with a debt-to-equity ratio of 22%. 2 Triumph’s future prospects appear quite promising. We believe the aerospace industry has just completed the first year of an extended cycle of increasing aircraft deliveries. Airbus and Boeing both set records for new orders in 2005, totaling in excess of 2,000 aircraft. The business jet market is robust, as is helicopter demand. Military spending on new aircraft remains constant. We expect strong orders to continue in the coming years, as global demand continues to increase, driven by the rapidly growing economies of Asia and a recovering U.S. airline industry. At the same time, the world’s airlines continue to show improving financial results, rising yields and increased seat miles – despite rising oil prices. Global commerce is fueling unprecedented demand for shipping and cargo services and the Iraq conflict has produced a continuing need in the U.S. military for aircraft maintenance and repair services. All these factors lead to strong aftermarket demand. Whether it be for our airline customers or our OEM partners, our objective is to increase market share by developing our capabilities as systems integrators so that we can meet a broader range of our customers’ needs. One name. Many solutions. Triumph has always been committed to growth, both organic and through acquisition. From the very beginning, we sought to buy and build successful aerospace companies with highly specialized technology and expertise – sophisticated, proprietary know-how that’s not easily duplicated by others. Our decentralized management philosophy fosters growth by protecting the integrity of individual Triumph companies and the products and services they provide, while offering the advantage of being part of a larger entity. This broad range of design, engineering, manufacturing and aftermarket service capabilities makes Triumph unique. Integrating our capabilities allows us to create and deliver “Triumph” solutions for larger, more complex aerospace systems or bundled aftermarket services. This complements the desire of our customers to delegate these crucial supply chain functions to a small circle of trusted, highly skilled partners. All our companies have now adopted the Triumph name as an expression of our commitment to work together to present a single face to our customers. During fiscal 2007 we will continue to strengthen Triumph’s reputation as a provider of high quality, technically advanced products and services, while continuing to stress the importance of an agile, responsive, entrepreneurial approach to running our companies. Integrating our capabilities allows us to create and deliver “Triumph”solutions for larger,more complex aerospace systems or bundled aftermarket services. solutions@triumphgroup.com Acquisitions expand capabilities In fiscal 2006 we demonstrated our ability as a unified, integrated company to take on complex, demanding challenges and to deliver innovative, cost effective solutions. One example is the Boeing’s 787 aircraft, which is expected to be one of the most successful new aircraft launches in history. Altogether, seven Triumph companies are participating in different aspects of the 787’s design and production. • Triumph Actuation Systems – Clemmons (formerly Frisby Aerospace) won a $300 million contract for the 787 Cargo Door Actuation System from Saab Aerospace. • Triumph Composite Systems and Triumph Structures – Kansas City (formerly Nu-Tech Industries) were selected by Vought Aircraft Industries to produce a ducting/structure integration package valued in excess of $200 million. • Other Boeing 787 awards to Triumph Structures – Los Angeles, Triumph Aerospace Systems – Seattle, Triumph Composite Systems and Triumph Gear Systems total more than $200 million. Triumph continues to increase its contribution to Airbus aircraft – including the A380 – and is actively pursuing work on the new A350. Triumph is also active in the emerging market for very light jets produced for the air taxi and business jet markets by Cessna, Eclipse, Embraer and others. Triumph continues to maintain a healthy portfolio of military programs. Military sales represent 33% of fiscal 2006 revenue, with participation by Triumph companies on key programs such as the V-22 Osprey, C-17 Globemaster, F/A-18 Super Hornet, F-35 Joint Strike Fighter, CH-47 Chinook and UH-60 Black Hawk. Triumph’s Aftermarket Services Group is leveraging our full range of capabilities by bundling products and services to meet more of our customers’ needs. Our logistics companies in Phoenix and the UK offer products/rotables/leases and services to the world’s airlines, backed by a full range of inventory and asset management solutions. During fiscal 2007 we will extend these services to Asia with the completion of our new facility in Thailand. Triumph Aftermarket Services – Asia will provide airlines with a full complement of Triumph’s products and services in proximity to the region’s major centers of commerce. We anticipate excellent growth opportunities in these rapidly growing and increasingly influential markets. Triumph continues its aggressive acquisition strategy, adding significant new capabilities to our company. Excel Manufacturing, Inc., renamed Triumph Structures – Wichita, adds monolithic, high-speed machining of large, thin-wall, tight tolerance components (bulkheads, frames and floors) to our structural component capabilities. As aircraft manufacturers continue to reduce the weight of new aircraft, monolithic structural components become an increasingly important part of aircraft design. Air Excellence, Inc., renamed Triumph Interiors, provides the world’s airlines with a cost effective solution to interior component refurbishments (sidewalls, ceiling panels, overhead bins) from its facilities in Pittsburgh, Dallas, Portland and Shannon, Ireland. Together these two companies will add revenue in excess of $45 million during fiscal 2007 and will be immediately accretive to earnings. We expect to remain active in the acquisition market during fiscal 2007. Constant strategies, consistently applied We believe Triumph’s past success and future potential are the direct result of consistent strategies which have been in effect since our company’s inception in 1993. We continually add new products and services. We expand our operating capacity. We acquire aggressively. We market our complete portfolio of capabilities. And, in today’s rapidly changing global marketplace, we’re expanding our international presence. Our culture embraces change and lean systems, allowing us to react quickly and efficiently to emerging industry trends and evolving customer requirements. The key to the successful implementation of our strategy is our stakeholders. We’re extremely proud of our workforce of more than 4,400 talented individuals, who are themselves backed by an integrated supply chain. At Triumph, technological excellence and human know-how converge to create exceptional value for our customers. When this occurs, our shareholders are rewarded with consistent, predictable growth in sales and earnings. Fiscal 2006 was very successful year for Triumph and an affirmation of the strength of our strategies. Most important, we found our stride as an innovative problem-solver in the rapidly changing, always challenging aerospace industry. We expect this momentum to continue and look to a promising future with confidence and anticipation. R I C H A R D C . I L L P R E S I D E N T A N D C H I E F E X E C U T I V E O F F I C E R 3 By providing basic contact infor- mation, customers can gain e-mail access to Triumph’s capabilities at solutions@triumphgroup.com. Group marketing representatives provide an immediate response to customer inquiries. One name. The Triumph name stands for practical innovation, meticulous execution and outstanding service throughout our broad range of engineering, manufacturing and repair/overhaul capabilities. These capabilities were assembled over many years through careful design and planning. Triumph brought together some of the finest specialty companies in the aerospace industry – companies with precise skills and experience in particular aircraft systems, assemblies and components – to create a diversified enterprise able to take on sophisticated and demanding engineering, production and maintenance challenges. Today Triumph offers both the technological expertise and the human talent required to produce a wide array of aircraft components and to integrate them in complex assemblies and systems. Likewise, we’re able to create overhaul and repair packages covering multiple components and systems, backed by a range of logistics solutions. Our success is based on the unique ability of our companies to work together as a single, unified organization that’s able to meet an increasingly broad range of our customers’ needs. 4 All Triumph companies now display the Triumph name and identity, reflecting their commitment to common values and shared dedication to excellence. Many solutions. 5 Seven Triumph companies collaborated in the development The Swing Tail transport is a key and production of the Boeing 747 element of Boeing’s global LCF Swing Tail aircraft’s fuselage sourcing for the 787, where large locking assembly. The fuselage of sections of the aircraft are this highly specialized aircraft manufactured at partner company hinges open to load large sections locations and then integrated in of Boeing’s 787. the final assembly operation. solutions@trium Through a single point of contact, customers access the full range of Triumph’s capabilities. Our flexible, decentralized organization allows each of our companies to contribute their specialized skills to project teams assembled around the needs of particular customers or aviation platforms. Our group marketing teams are the gateway to our full range of Aerospace Systems and Aftermarket Services capabilities. Triumph’s customer-focused solutions meet a growing need in the aerospace industry. Today, manufacturers and carriers seek to rely on fewer suppliers, and depend on suppliers to share design, engineering and logistics responsibilities. Triumph is well positioned to support this trend. Our diverse skill base allows us to participate in larger, more complex projects than an individual company could undertake on its own. Triumph’s expertise as a systems integrator generates additional opportunities to meet more of our customer’s needs at all levels of the aerospace supply chain. Today Triumph’s Aerospace Systems Group is actively engaged in the development and production of components, assemblies and systems for the Airbus A350 and A380, the Boeing 787 and 747 LCF, the Cessna Mustang and the Embraer 170/190. Our Aftermarket Services Group provides bundled packages of maintenance, inventory, logistics and asset management services for most leading airlines and air cargo services. 6 Teamwork among our companies allows Triumph to develop and Triumph companies designed and refine new areas of expertise – produced the Large Cargo Door creating integrated systems Actuation Systems for the new solutions to meet complex and Airbus A380 and the Boeing 787. sophisticated customer needs. phgroup.com d e v r e s e R s t h g R i l l A i , g n e o B © 7 Company Directory Triumph Aerospace Systems Group Jeffry D. Frisby, Group President Phone: 336-766-9036 E-mail: jfrisby@triumphgroup.com Construction Brevetees d’Alfortville (C.B.A.) Manufactures mechanical ball bearing control assemblies for the aerospace, ground transportation,defense and marine industries. Michel Pommey, President E-mail: mpommey@triumphgroup.com Phone: 011 33 1 4375 2053 Alfortville, France Triumph Actuation Systems – Clemmons Triumph Actuation Systems – Freeport Designs,manufactures and repairs complex hydraulic and hydromechanical aircraft components and systems,such as variable displacement pumps and motors, linear actuators and valves. Richard Reed, President E-mail: rreed@triumphgroup.com Phone: 336-766-9036 Clemmons, North Carolina Phone: 516-378-0162 Freeport, New York Triumph Actuation Systems – Bloomfield Triumph Actuation Systems – East Lyme Triumph Actuation Systems – Bethel Designs,manufactures and repairs complex hydraulic,hydromechanical and mechanical aircraft components and systems,such as nose wheel steering motors,helicopter blade lag dampers, mechanical hold-open rods,coupling and latching devices,as well as mechanical and electromechanical actuation products. Thomas Holzthum, President E-mail: tholzthum@triumphgroup.com Phone: 860-242-5568 Bloomfield, Connecticut Phone: 860-739-4926 East Lyme, Connecticut Phone: 203-748-0027 Bethel, Connecticut Triumph Aftermarket Services Group John Brasch, Group President Phone: 602-659-7301 E-mail: jbrasch@triumphgroup.com 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. Robert Bierk, President E-mail: bbierk@triumphgroup.com Phone: 620-326-2235 Wellington, Kansas Phone: 414-543-5604 Milwaukee, Wisconsin Triumph Air Repair Repairs and overhauls auxiliary power units and related accessories. Michael Hansen, President E-mail: mhansen@triumphgroup.com Phone: 602-437-1144 Phoenix, Arizona 8 Triumph Actuation Systems – Valencia Designs,manufactures and repairs complex hydraulic and hydromechanical aircraft components and systems,such as accumulators,actuators and complex valve packages. Brian Barrett, President E-mail: bbarrett@triumphgroup.com Phone: 661-295-1015 Valencia, California Triumph Controls – North Wales Triumph Controls – Shelbyville Designs and manufactures mechanical and electromechanical control systems. William Bernardo, President E-mail: bbernardo@triumphgroup.com Phone: 215-699-4861 North Wales, Pennsylvania Phone: 317-421-8760 Shelbyville, Indiana Triumph Fabrications – Fort Worth Manufactures and repairs metallic/ composite bonded components and assemblies. William Wherry, General Manager E-mail: bwherry@triumphgroup.com Phone: 817-451-0620 Fort Worth, Texas Triumph Fabrications – Hot Springs Produces complex sheet metal parts and assemblies and performs chem-milling and other metal finishing processes. M. Anthony Johnson, President E-mail: tjohnson@triumphgroup.com Phone: 501-321-9325 Hot Springs, Arkansas Triumph Fabrications – Shelbyville 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 E-mail: dkendall@triumphgroup.com Phone: 317-398-6684 Shelbyville, Indiana Triumph Fabrications – San Diego Triumph Fabrications – Phoenix Produces complex welded and riveted sheet metal assemblies for aerospace applications.Components include exhaust systems,ducting,doors,panels,control surfaces and engine components. Mark Gobin, President E-mail: mgobin@triumphgroup.com Phone: 619-440-2504 El Cajon, California Phone: 480-449-5820 Chandler, Arizona Triumph Instruments – Burbank Triumph Instruments – Teterboro Triumph Instruments – Ft. Lauderdale Triumph Instruments – Austin Repairs and overhauls aircraft instruments and avionics and serves as an authorized stocking distributor for a variety of aircraft components. Richard R. Rockwood, President E-mail: rrockwood@triumphgroup.com Phone: 818-246-8431 Burbank, California David G. Vorsas, President E-mail: dvorsas@triumphgroup.com Phone: 201-440-0075 Teterboro, New Jersey Phone: 954-772-4559 Fort Lauderdale, Florida Phone: 512-218-1900 Austin, Texas Triumph Aerospace Systems – Seattle System engineering and integration for landing gear,hydraulic,deployment,cargo door and electro-mechanical type systems. Capabilities include design,analysis and testing to support these types of systems and components. Don P. Fowler, President E-mail: dfowler@triumphgroup.com Phone: 425-636-9001 Redmond, Washington Triumph Aerospace Systems – Wichita Manufactures,repairs and installs aircraft windshields,side cockpit windows and cabin windows and manufactures control wheels, wings and fuselage sub-assemblies for the general aviation and business jet markets. James E. Lee, President E-mail: jlee@triumphgroup.com Phone: 800-379-6840 Wichita, Kansas Triumph Composite Systems Manufactures interior non-structural composites for the aviation industry, including air control system ducting,floor panels,aisle stands and glareshields. MaryLou B. Thomas, President E-mail: mthomas@triumphgroup.com Phone: 509-623-8100 Spokane, Washington Triumph Airborne Structures Repairs and overhauls thrust reversers, nacelle components,flight control surfaces and other aerostructures. Mike Abram, President E-mail: mabram@triumphgroup.com Phone: 501-262-1555 Hot Springs, Arkansas Triumph Aviation Services – Asia Designs,engineers,manufactures,repairs and overhauls complex aircraft operational components,such as auxiliary power units (APU),nacelles,constant speed drives, thrust reversers and related accessories. Babu Kerai, Vice President – Operations Email: bkerai@triumphgroup.com Phone: 011 66 3 845 8840 Bangkok, Thailand Triumph Engines – Tempe Designs,engineers,manufactures,repairs and overhauls aftermarket aerospace gas turbine engine components and provides repair services and aftermarket parts and services to aircraft operators,maintenance providers and third-party overhaul facilities. Michael Hansen, President E-mail: mhansen@triumphgroup.com Phone: 602-438-8760 Tempe, Arizona Triumph Gear Systems – Park City Triumph Gear Systems – Macomb Manufactures complex geared assemblies, highlift actuation systems,gears and other components,servicing the aerospace industry. Gregory Blanchard, President E-mail: gblanchard@triumphgroup.com Phone: 586-781-2800 Macomb, Michigan Phone: 435-649-1900 Park City, Utah Triumph Northwest Machines and fabricates refractory, reactive,heat and corrosion-resistant precision products. Frederick W. Kuebrich, President E-mail: fkuebrich@triumphgroup.com Phone: 541-926-5517 Albany, Oregon Triumph Precision Manufactures ultra-precision machined components and assemblies to the aviation,defense,space and commercial industries. Kevin Dahlin, President E-mail: kdahlin@triumphgroup.com Phone: 818-767-7193 Sun Valley, California Triumph Processing Provides high-quality finishing services to the aerospace,military and commercial industries. Peter J. LaBarbera, President E-mail: plabarbera@triumphgroup.com Phone: 323-563-1338 Lynwood, California Triumph Structures – Kansas City Manufactures precision machined parts and mechanical assemblies for the aviation,aerospace and defense industries. David Soper, President E-mail: dsoper@triumphgroup.com Phone: 816-763-8600 Grandview, Missouri Triumph Interiors – Pittsburgh Triumph Interiors – Dallas Triumph Interiors – Portland Triumph Interiors – Ireland Refurbishes and repairs aircraft interiors such as sidewalls,ceiling panels and overhead storage bins and manufactures a full line of PMA interior lighting and plastic components. Robert Williams, President Email: rhwilliams@triumphgroup.com Phone: 412-788-4200 Oakdale, Pennsylvania Phone: 972-623-3344 Grand Prairie, Texas Phone: 503-252-9949 Portland, Oregon Phone: 011 35 361 472711 Shannon, Ireland Triumph Logistics – Phoenix Triumph Logistics – UK Provides distribution,exchange and lease programs for APUs,APU components and components supported by Triumph Group Companies. Lee R. Jacobs, President E-mail: ljacobs@triumphgroup.com Phone: 602-470-7226 Phoenix, Arizona Phone: 011 44 1256 381507 Lasham Alton Hampshire, England Triumph Structures – Los Angeles Manufactures long structural components, such as stringers,cords,floor beams and spars for the aviation industry.Machines, welds and assembles large complex precision structural components. Kevin Dahlin, President E-mail: kdahlin@triumphgroup.com Phone: 626-965-1630 City of Industry, California Phone: 818-341-1314 Chatsworth, California Phone: 626-965-1630 Walnut, California Triumph Structures – Wichita Specializes in complex,high speed monolithic precision machining,turning, subassemblies and sheet metal fabrication, serving domestic and international aerospace customers. Marwan Hammouri, President E-mail: mhammouri@triumphgroup.com Phone: 316-942-0432 Wichita, Kansas Triumph Thermal Systems Designs,manufactures and repairs aircraft thermal transfer components and systems. Michael Perhay, President E-mail: mperhay@triumphgroup.com Phone: 419-273-2511 Forest, Ohio Triumph Wichita Support Center Provides commercial,technical and logistics support for the Triumph Group companies’ Wichita-based customers. James E. Lee, President Phone: 316-636-9200 E-mail: jlee@triumphgroup.com Wichita, Kansas Triumph Precision Castings Applies advanced directionally solidified (polycrystal or single crystal) and Equiax investment casting processes to produce products for the commercial and defense gas turbine markets. Dean Evans, President E-mail: devans@triumphgroup.com Phone: 480-449-5750 Chandler, Arizona Triumph San Antonio Support Center Repairs and overhauls aircraft ground support equipment used to support maintenance of U.S.military aircraft performed in Texas. Robert Bierk, President E-mail: bbierk@triumphgroup.com Phone: 210-932-6700 San Antonio, Texas Corporate Officers & Directors Corporate Officers Directors RICHARD C. ILL President and Chief Executive Officer JOHN R. BARTHOLDSON Senior Vice President, Chief Financial Officer and Treasurer LAWRENCE J. RESNICK Senior Vice President – Operations 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. JOHN B. WRIGHT, II Vice President, General Counsel and Secretary 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) GEORGE SIMPSON Chief Executive Officer Marconi, PLC (Retired) TERRY D. STINSON President of North America Operations The Thomas Group, Inc. KEVIN E. KINDIG Vice President and Controller SHEILA G. SPAGNOLO Vice President Shareholder Information Triumph Group, Inc. Corporate Headquarters 1550 Liberty Ridge Drive Suite 100 Wayne, PA 19087 610-251-1000 www.triumphgroup.com Annual Meeting July 27, 2006, 9:00 am 1550 Liberty Ridge Drive, Suite 100, 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 and Treasurer Triumph Group, Inc. 1550 Liberty Ridge Drive, Suite 100 Wayne, PA 19087 610-251-1000 Fiscal 2006 Stock Prices Forward–Looking Statements Per Common Share $44.64 High $30.72 Low $44.26 Year-End 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. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that certain statements contained in this report are forward-looking in nature. These forward- looking statements include matters such as our expectations for our industry, our markets, our Company’s business strategy and potential and other future-oriented matters. Such matters inherently involve many risks and uncertainties. For additional information, please refer to the Company’s Securities and Exchange Commission filings including its Form 10-K for the year ended March 31, 2006. Certifications The certifications by the Chief Executive Officer and the Chief Financial Officer of Triumph Group, Inc. required under Section 302 of the Sarbanes-Oxley Act of 2002 have been filed as exhibits to Triumph Group, Inc.’s 2006 Annual Report on Form 10-K. In addition, in August 2005, the Chief Executive Officer of Triumph Group, Inc. certified to the New York Stock Exchange (“NYSE”) that he is not aware of any violation by the Company of NYSE corporate governance listing standards, as required by Section 303A.12(a) of the NYSE Corporate Governance Rules. 9 One name. Many solutions. Triumph Group, Inc. 1550 Liberty Ridge Drive Suite 100 Wayne, PA 19087 610-251-1000 www.triumphgroup.com 

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