Triumph Group reports third quarter fiscal 2017 results

Net sales for the fiscal third quarter of 2017 declined 8% from the prior year quarter net sales, including US$1.2m of incremental sales from the October 2015 acquisition of Fairchild Controls offset by US$4.5m of revenues related to the second quarter divestiture. On an organic basis, sales were down 7% primarily due to production rate reductions by customers on the 747-8, G450/550 and C-17 programs, changes in model mix, decreased demand in commercial rotorcraft and foreign exchange rates. These factors were partially offset by increased production rates on the 767/Tanker program and stronger sales in the Product Support segment resulting from key contract wins with regional and commercial operators for components and accessories. Operating income included US$14.1m of restructuring costs and US$14.4m loss on the pending sale of assets of Triumph Air Repair, the APU overhaul operations of Triumph Aviation Services-Asia and Triumph Engines-Tempe. Cumulative catch-up adjustments on long-term contracts were a net favorable US$2.1m. Net income for the third quarter of fiscal year 2017 was US$29.3m.