Triumph Group expects fiscal year 2014 additional program costs

Triumph Group reported that it expects to record pre-tax additional program costs during fiscal year 2014 totaling approximately $68.0m, primarily associated with the 747-8 program. Of the total incremental costs, approximately $44.0m, will be included in the company’s second quarter fiscal year 2014 financial results. The company expects that approximately $11.0m will be reflected in third quarter fiscal year 2014 and the remaining $13.0m will be included in the fourth quarter fiscal year 2014 financial results. The number of shares used in computing diluted earnings per share was approximately 53.0m shares. These amounts have resulted from reductions to the profitability estimates of the company’s current 747-8 production lot, which will be approximately 80% completed by the end of the company’s second quarter fiscal year 2014 and is expected to be nearly 100% completed by the end of the third quarter fiscal year 2014. As a result of the current cost levels, the expected profitability on the next production lot, which will begin delivery in the fourth quarter of fiscal year 2014, was also decreased. Both current and future production lots are expected to be profitable and not result in loss reserves.