If it's between nose and tail, Triumph Group's got it covered. Triumph's companies design, engineer, manufacture, repair, and overhaul a myriad of aerostructures, and aircraft components and systems for customers that include commercial, general, and military original and aftermarket equipment manufacturers. The company has three operating segments including Aerospace Systems; Aftermarket Services (maintenance, repair, and overhaul); and Aerostructures (makes metallic and composite aerostructures and structural components). It operates through nearly 65 facilities around the world. US customers account for the majority of sales; Boeing is at the top of the list, generating around 45% of Triumph's total sales.
Triumph operates through almost 45 specialized manufacturing companies serving under its three operating segments. Its Aerostructures segment is its most lucrative, accounting for 75% of the company's total sales each year. Military and defense represents more than one-third of sales for this segment, putting it at the mercy of the US Department of Defense and its fickle annual budget. The US government's funding cuts on new equipment may necessitate repairing and maintaining existing mission aircraft for longer life. Triumph has shifted its sales mix to mitigate market fluctuations that affect commercial and business aviation, as well as government budget restraints that may affect military aviation.
Triumph has recognized impressive growth over the years, mostly as a result of some key acquisitions. Two acquisitions contributed $1.9 billion in total sales for 2012, which paved the way for a 17% boost in overall sales compared to 2011. Organic sales jumped almost 7%, due to an increase in commercial production rates of various customer programs. The Aerostructures, Aerospace Systems, and Aftermarket Services segments enjoyed an increase in net sales of around 21%, 7%, and 7%, respectively. Triumph's profits skyrocketed by 87% from 2011 to 2012, mostly due to the rise in overall sales, higher operating income, and lower costs associated from discontinued operations.
In early 2013 Triumph bought the pump and engine control systems business of Goodrich (Goodrich Pump & Engine Control Systems or GPECS) from United Technologies. The strong move allowed Triumph to add about $195 million in revenue by entering a new market.
In late 2011 the company obtained Aviation Network Services (ANS), a firm that repairs and refurbishes commercial aircraft interiors. ANS operates as part of Triumph Interiors residing within Aftermarket Services.
Triumph created its Aerostructures business segment in mid-2010 through the acquisition of Vought Aircraft Industries, a global commercial and military aerostructures subcontractor. Triumph paid The Carlyle Group about $1.4 billion in cash and stock, and Carlyle received approximately 31% of Triumph's outstanding stock. Vought was renamed Triumph Aerostructures - Vought Aircraft Division. The deal gave Triumph access to the aerostructures market, in addition to strengthening its position in the commercial and military sectors.
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