Based in Wayne, Pennsylvania,
Triumph Group, Inc.
) recently issued a public offering of 4,666,116 shares of its
common stock. The company is likely to close and settle the
offering on June 12, 2012.
The Carlyle Group's investment funds and units will be selling
all their interest in Triumph Group via this public offering. Sole
underwriter to this offering is Credit Suisse Securities (USA)
Of late, the company reported encouraging results for the fourth
quarter and fiscal 2012 with $1.57 per diluted share, up from $1.07
in the year-ago quarter and a 3% y/y rise in net sales. The
improved results were driven by significant operating income growth
and operating margin expansion generated in the company's Aerospace
Systems segment as well as Aerostructures segment with organic
growth reaching 3%.
Triumph Group bears a favorable outlook for fiscal 2013,
expecting to boost current production rates and anticipating
earnings per share from continuing operations to be within the
range of $5.45 to $5.55, excluding integration costs. Moreover,
strong backlog during the fourth quarter of 2012 coupled with a
solid balance sheet looks impressive for the company's upcoming
The improving air transport industry indicates a promising
demand scenario for the company's products, equipment and methods
of repair and overhaul services; thereby improving its results
going forward. However, it faces stiff competition from its peers,
Rolls Royce Holdings plc
We currently maintain a long-term 'Neutral' recommendation on
the stock. Triumph Group holds a Zacks #2 Rank, which translates
into a short-term 'Buy' rating (1-3 months).
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TRIUMPH GRP INC (TGI): Free Stock Analysis
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