News Capsule

Triumph Group’s plan of action to reduce debt & increase profitability

9 June 2020: With a focus on core system and product support markets and capabilities, Triumph Group had undertaken a comprehensive review of its structural businesses in 2019. Based on that review, the company has reported progress across various on-going & completed projects like

 Divestment of 10 build-to-print machine shops, five fabrication shops, two metal finishing facilities, and its two million square foot Nashville large structures plant.

 The transition of the Bombardier Global 7500 wing program, G-650 wing box assembly operation, and Embraer E2 fuselage contract have all been completed to their new owners.

 Completed its final B747 fuselage panels in its Hawthorne California factory which is planned to be closed later this year.

 Transition of its B767 structural assembly work out of its Grand Prairie Texas plant is nearing completion.

Besides this, in order to improve profitability over 1,000,000 annual hours of structures work has been outsourced.

Daniel J. Crowley, President and CEO of Triumph Group stated, “Our Aerospace Structures team has executed with discipline, stabilizing the business while delivering on customer commitments, and exiting loss-making and non-strategic programs. Their demonstrated ability to divest non-core operations while developing next-generation composites and thermoplastic process capabilities reflects Triumph’s value-creation drive.

Despite recent market headwinds, we have been able to reposition programs and factories with strategic buyers who are committed to the structures market and want to invest in these businesses for the benefit of all stakeholders. We look forward to completing our review in calendar year 2020.”

Triumph also signed various agreements to reduce debts such as:

 Agreement with Gulfstream to sell its G650/G700 wing business which will conclude its obligations on the program. The transaction will be over by 2021 and will help to reduce debt and inventory levels.

 Secured purchase orders from Boeing Commercial Airplanes across multiple programs to maintain economical production levels and provide support to its lower-tier supply chain. Triumph and Boeing also resolved open claims and deferred a majority of its advance repayments out of fiscal year 2021.

 Reached agreement with Israel Aviation Industries to accelerate transfer of the G280 wing program to IAI and Korean Aerospace Industries by July 2020. Only two completed wings remain to be delivered from Triumph’s Tulsa Oklahoma plant after which it will be closed. All design support and scheduled warranty obligations will be transferred to IAI.

Taken together, the Company’s comprehensive de-risking actions will reduce the number of Aerospace Structures sites from 34 to 9, reduce occupied space by 4.4 million square feet, and reduce staffing levels by over 4,000 employees.