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Triumph Group Reports First Quarter Fiscal 2006 Results

WAYNE, Pa.--(BUSINESS WIRE)--July 29, 2005--Triumph Group, Inc. (NYSE:TGI):

  • Net sales for first quarter fiscal 2006 increased 7% to $177.7 million

  • Operating income in the first quarter fiscal 2006 increased 113% to $13.7 million

  • Net income for the first quarter fiscal 2006 increased 151% to $7.2 million

  • Backlog increased 14% during the quarter to $682.2 million

Triumph Group, Inc. (NYSE:TGI) today reported that net sales from continuing operations for the first quarter of the fiscal year ending March 31, 2006 totaled $177.7 million, a seven percent increase from last year's first quarter net sales from continuing operations of $165.4 million. Net income for the first quarter of fiscal 2006 increased one hundred fifty-one percent to $7.2 million, or $0.45 per diluted common share, versus $2.9 million, or $0.18 per diluted common share for the first quarter of the prior year. During the quarter, the company generated $1.1 million of cash flow from operations.

The Aerospace Systems segment reported net sales for the quarter of $134.1 million, a twelve percent increase over the prior year quarter's sales of $119.4 million. Operating income for the current quarter increased forty-three percent to $16.2 million, compared to $11.3 million in the prior year period.

The Aftermarket Services segment reported net sales for the quarter of $44.2 million, compared to $39.7 million in the prior year period, an eleven percent increase. Operating income for the first quarter of fiscal 2006 was $1.4 million, compared to $1.3 million for the prior year period, a seven percent increase.

Richard C. Ill, Triumph's President and Chief Executive Officer, said, "We are very pleased with the first quarter results and with the strong operational and financial performance across our businesses. The fundamental driver to our improving performance was revenue growth, all of which was organic, combined with enhanced operating leverage as a result of these higher operating rates. Based on the strength of our markets, solid backlog and strong balance sheet, we see continued momentum across our operations for the balance of our fiscal year."

As previously announced, Triumph will hold a conference call today at 10:00 a.m. (EDT) to discuss the fiscal 2006 first quarter results. The conference call will be available live and archived on the company's website at http://www.triumphgroup.com. An audio replay will be available from July 29th until August 5th by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #737351.

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 commercial and regional airlines, air cargo carriers, as well as original equipment manufacturers of commercial, regional, business and military aircraft and aircraft components.

More information about Triumph can be found on the Internet 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 statements concerning the company's expectations for growth in the fiscal year. 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, 2005.



                     FINANCIAL DATA  (UNAUDITED)

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


                                                   Three Months Ended
                                                        June 30,
                                                   -------------------

CONDENSED STATEMENTS OF INCOME                       2005      2004
                                                   --------- ---------

Net Sales                                          $177,697  $165,353

Operating Income                                     13,729     6,447

Interest Expense and Other                            3,187     3,257
Income Tax Expense (Benefit)                          3,373     1,085
                                                   --------- ---------

Income from Continuing Operations                     7,169     2,105
Income from Discontinued Operations                       0       754
                                                   --------- ---------

Net Income                                           $7,169    $2,859
                                                   ========= =========

Earnings Per Share - Basic:

Income from Continuing Operations                     $0.45     $0.13
Income from Discontinued Operations                   $0.00     $0.05
                                                   --------- ---------
Net Income                                            $0.45     $0.18
                                                   ========= =========

Weighted average common shares outstanding - Basic   15,906    15,860
                                                   ========= =========

Earnings Per Share - Diluted:

Income from Continuing Operations                     $0.45     $0.13
Income from Discontinued Operations                   $0.00     $0.05
                                                   --------- ---------
Net Income                                            $0.45     $0.18
                                                   ========= =========

Weighted average common shares outstanding -
 Diluted                                             16,006    15,935
                                                   ========= =========



                      FINANCIAL DATA (UNAUDITED)

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


BALANCE SHEET
                                                   June 30,  March 31,
                                                     2005      2005
                                                   --------- ---------
                              Assets
  Cash                                               $5,471    $4,844
  Accounts Receivable, net                          122,966   127,942
  Inventory                                         226,250   217,234
  Deferred Income Taxes                               5,422     5,422
  Prepaid Expenses and Other                          3,275     3,887
                                                   --------- ---------
    Current Assets                                  363,384   359,329

  Property and Equipment, net                       233,101   234,123
  Goodwill                                          273,588   273,476
  Intangible Assets, net                             54,406    56,227
  Other                                              13,748    14,560
                                                   --------- ---------

  Total Assets                                     $938,227  $937,715
                                                   ========= =========

              Liabilities & Stockholders' Equity

  Accounts Payable                                  $62,767   $65,211
  Accrued Expenses                                   60,353    75,598
  Income Taxes Payable                                4,569     2,922
  Current Portion of Long-Term Debt                   1,692     1,740
                                                   --------- ---------
    Current Liabilities                             129,381   145,471

  Long-Term Debt, less current portion              166,422   156,042
  Deferred Income Taxes and Other                   109,148   109,539

  Stockholders' Equity:
    Common Stock, $.001 par value, 50,000,000
     shares authorized, 16,027,324 shares issued         16        16
  Capital in excess of par value                    259,575   259,448
  Treasury Stock, at cost, 119,160 and 123,160
   shares                                            (2,958)   (3,057)
  Accumulated other comprehensive (loss) income        (476)      306
  Retained earnings                                 277,119   269,950
                                                   --------- ---------
    Total Stockholders' Equity                      533,276   526,663
                                                   --------- ---------

  Total Liabilities and Stockholders' Equity       $938,227  $937,715
                                                   ========= =========



                      FINANCIAL DATA (UNAUDITED)

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


SEGMENT DATA                                       Three Months Ended
                                                        June 30,
                                                   -------------------

                                                     2005      2004
                                                   --------- ---------

Net Sales:
  Aerospace Systems                                $134,146  $119,416
  Aftermarket Services                               44,160    39,741
  Other                                                   0     7,730
  Elimination of inter-segment sales                   (609)   (1,534)
                                                   --------- ---------
                                                   $177,697  $165,353
                                                   ========= =========

Operating Income (Loss):
  Aerospace Systems                                 $16,216   $11,309
  Aftermarket Services                                1,356     1,266
  Other                                                   0    (3,153)
  Corporate                                          (3,843)   (2,975)
                                                   --------- ---------
                                                    $13,729    $6,447
                                                   ========= =========

Depreciation and Amortization:
  Aerospace Systems                                  $5,525    $4,697
  Aftermarket Services                                2,374     2,071
  Other                                                   0       760
  Corporate                                              32        43
                                                   --------- ---------
                                                     $7,931    $7,571
                                                   ========= =========


Capital Expenditures:
  Aerospace Systems                                  $1,917    $2,060
  Aftermarket Services                                3,065       881
  Other                                                   0         7
  Corporate                                              14        26
                                                   --------- ---------
                                                     $4,996    $2,974
                                                   ========= =========



                      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 June 30, 2005 was $21.7 million
with a margin of 12.2%.  EBITDA for the three months ended June 30,
2004 was $14.0 million with a margin of 8.5%.

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.


                                                   Three Months Ended
                                                        June 30,
                                                   -------------------
                                                     2005      2004
                                                   --------- ---------
Earnings before Interest, Taxes, Depreciation and
 Amortization (EBITDA):

  Income from Continuing Operations                  $7,169    $2,105

  Add-back:
    Income Tax Expense                                3,373     1,085
    Interest Expense and Other                        3,187     3,257
    Depreciation and Amortization                     7,931     7,571
                                                   --------- ---------

  Earnings before Interest, Taxes, Depreciation
   and Amortization ("EBITDA")                      $21,660   $14,018
                                                   --------- ---------

  Net Sales                                        $177,697  $165,353
                                                   --------- ---------

  EBITDA Margin                                        12.2%      8.5%
                                                   ========= =========

CONTACT: Triumph Group, Inc., Wayne
John Bartholdson, 610-251-1000
jbartholdson@triumphgroup.com

SOURCE: Triumph Group, Inc.