Back to top

Analyst Blog

Triumph Group, Inc. (TGI - Analyst Report) took over Primus Composites from Precision Castparts Corp. (PCP - Analyst Report) for an undisclosed amount. This move comes as a part of the company’s strategy to widen its global footprint and expand its structural composite potential.

Primus Composites is a global supplier of composite and metallic propulsion and structural composite components and assemblies. Its main customers include Airbus SAS, Rolls Royce, Aircelle and Bombardier Inc.

Triumph Group will acquire two manufacturing facilities, one in Farnborough, England and another in Rayong, Thailand. Post-acquisition, these businesses will become a part of Triumph Aerostructures Systems Group and will operate as Triumph Structures-Farnborough and Triumph Structures-Thailand.

Triumph Aerostructures Systems Group is engaged in designing, manufacturing, assembling and integration of metallic and composite aerostructures and structural components. The business contributed 73% to net sales in fiscal 2013. The company expects this acquisition to add approximately $55 million to the top line and be accretive to the bottom line immediately.

Based in Berwyn, Pa. Triumph Group designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerostructures, aircraft components, accessories, subassemblies and systems.

Triumph’s organic growth has been reasonably strong based on the addition of products and services, expansion of operating capacity and marketing of a complete product portfolio. Currently, the company seems to be busy acquiring and adding to its portfolio.

Only last month, the company completed the acquisition of the pump and engine control systems business of Goodrich Corporation from United Technologies Corp. (UTX - Analyst Report).

Recently, Triumph Group reported fourth quarter fiscal 2013 results that ended Mar 31, 2013. Fourth quarter earnings surpassed the Zacks Consensus Estimate and also increased year over year.

Going forward, a rebounding aviation industry will spur demand for efficient jets. Triumph Group with its fuel and technologically efficient jets will stand to gain from these favorable macro dynamics.

However, we remain concerned about the uncertainty related to defense budgets as the demand for Triumph’s military and defense products is largely dependent on government budgets. Moreover, in the current scenario, where energy prices as well as commodity prices increase daily on an average, the company may find it more challenging to maintain and increase margins further. The company presently retains a short-term Zacks Rank #3 (Hold).

In the near term, we would advise investors to accumulate its short-term Zacks Rank #2 (Buy) peer B/E Aerospace Inc. (BEAV - Snapshot Report).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 26.64 +8.78%
CENTURY ALU… CENX 26.50 +6.08%
BANCO DO BR… BDORY 16.36 +5.34%
TESLA MOTOR… TSLA 282.53 +4.76%
CANADIAN SO… CSIQ 36.91 +4.15%