Triumph Group Inc.’s (TGI - Analyst Report) adjusted earnings from continuing operations for the fiscal first quarter 2015 ended Jun 30, 2014, came in at $1.19 per share, missing the Zacks Consensus Estimate by a penny. The bottom line also decreased 22.7% from the year-earlier adjusted profit of $1.54 per share.
Including non-recurring items, GAAP earnings per share were $2.46, up from $1.50 per share in the prior-year quarter.
In the reported quarter, net sales decreased almost 5% year over year to $896.9 million due to a 6% decline in organic sales. Organic sales declined because of production rate cuts on the 747-8 and V-22 programs. Lower revenues on The Boeing Company’s (BA - Analyst Report) 767 program also led to the decline. The reported figure also missed the Zacks Consensus Estimate of $919.0 million.
Quarterly Operational Highlights
Operating income in the fiscal first quarter increased approximately 70.2% year over year to $240.5 million.
Aerostructures: Segment sales were $611.9 million, down 6.1% year over year. Organic sales were down 6% primarily due to production rate cuts on the 747-8 program, lower revenues on the 767 program and for shifting several C-17 shipments into the fiscal second quarter 2015.
Operating income was $70.9 million, down 29.4% year over year.
Aerospace Systems: Segment sales were up a marginal $0.04 million year over year to $219.9 million. Organic sales for the quarter decreased 5% due to a cut in the V-22 program and lower military sales.
Operating income was $37.4 million, down 12.2% year over year.
Aftermarket Services: Segment revenues were $67.6 million, down from $74.4 million in the year-ago period. Organic sales were down 9% primarily due to the timing of completion of certain contracts and continued military weakness.
Operating income was $10.5 million, down from $11.2 million in the first quarter fiscal 2014.
During the first quarter fiscal 2015, Triumph’s cash balance was $25.5 million compared with $29.0 million as of Mar 31, 2014. Total debt was $1,757.6 million compared with $1,550.4 million as of Mar 31, 2014. The debt-to-capitalization ratio in the reported quarter stood at 42.4%.
For fiscal 2015, the company forecasts sales in the range of $3.8 billion to $3.9 billion. Adjusted earnings per share from continuing operations for fiscal 2015 are expected in the range of $5.75 to $5.90.
The company also maintained its adjusted EBITDA guidance for fiscal 2015 of $665.0 million to $680.0 million.
The company expects to strengthen its performance through fiscal 2015, particularly in the second half of the year. Triumph is focused on global expansion and is striving to achieve a balance between its segments, end markets and customers.
During the quarter, Triumph Group acquired the hydraulic actuation business of GE Aviation, a subsidiary of General Electric Company (GE - Analyst Report). This transaction further strengthened Triumph Group’s Aerospace Systems segment.
The stock currently carries a Zacks Rank #2 (Buy). A better-ranked stock to look out for in this aerospace and defense equipment industry includes Alliant Techsystems Inc. , holding a Zacks Rank #1 (Strong Buy).