Triumph Group, Inc. (NYSE: TGI ) today reported that net sales for the first quarter of fiscal year ending March 31, 2013 totaled $887.7 million, a five percent increase from last year’s first quarter net sales of $845.1 million. Organic sales growth for the quarter was five percent.
Income from continuing operations for the first quarter of fiscal year 2013 was $76.3 million, or $1.46 per diluted share, versus $50.9 million, or $0.99 per diluted share, for the first quarter of the prior fiscal year. The quarter’s results included approximately $0.5 million pre-tax ($0.3 million after tax or $0.01 per diluted share) of integration costs related to the acquisition of Vought Aircraft Industries (now Triumph Aerostructures- Vought Aircraft Division). In addition, the first quarter results included a charge of $1.2 million pre-tax ($0.7 million after tax or $0.01 per diluted share) for early retirement incentives offered to certain Triumph Aerostructures employees. The prior fiscal year’s quarter included $0.5 million pre-tax ($0.3 million after tax) of integration costs associated with the Vought acquisition. Excluding integration costs and the early retirement incentives, income from continuing operations for the quarter was $77.4 million, or $1.48 per diluted share.
Income tax expense for the quarter included approximately $2.2 million of additional tax, or $0.04 per diluted share, due to the recapture of domestic production deductions taken in earlier years associated with a refund claim expected to be filed in the second quarter. The number of shares used in computing earnings per share for the first quarter of fiscal year 2013 was 52.3 million shares. During the quarter, the company generated $127.6 million of cash flow from operations before Triumph Aerostructures’ pension contribution of $25.1 million; after this contribution, cash flow from operations was $102.5 million.
Segment ResultsAerostructures The Aerostructures segment reported net sales for the quarter of $669.9 million, compared to $643.3 million in the prior year period, an increase of four percent, all of which was organic. Operating income for the first quarter of fiscal year 2013 was $120.1 million compared to $88.0 million for the prior year period, an increase of thirty-seven percent, and included a net unfavorable cumulative catch-up adjustment on long-term contracts of $1.3 million offset by a favorable $7.0 million settlement of a termination claim. As a result of improved execution, synergy realization, lower pension expense and the favorable termination claim, the segment’s operating margin for the quarter was eighteen percent.