Triumph Group Expects Addl. Program Costs In FY14 - Quick Facts

(RTTNews) - Triumph Group Inc. (TGI) expects fiscal 2014 pre-tax additional program costs of around $68.0 million, or $0.83 per share, mainly associated with the 747-8 program. Out of the total incremental costs, about $44.0 million, or $0.53 per share, would be included in the company's second quarter fiscal 2014 results.

The company anticipates that nearly $11.0 million, or $0.14 per share, would be reflected in third quarter of fiscal 2014 and the rest $13.0 million, or $0.16 per share, would be included in the fourth quarter fiscal 2014 results. The number of shares used in computing earnings per share were around 53.0 million shares.

These amounts have resulted from reductions to the profitability estimates of the firm's current 747-8 production lot, which would be about 80% completed by the end of the company's second quarter fiscal 2014 and is likely to be nearly 100% completed by the end of the third quarter fiscal year 2014.

As a consequence of the current cost levels, the expected profitability on the next production lot, which would begin delivery in the fourth quarter of fiscal year 2014, was also decreased. Both current and future production lots are expected to be profitable and not result in loss reserves.