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About Triumph Aerostructures, LLC

Triumph Group's companies design, engineer, manufacture, repair, and overhaul a variety of aerostructures, and aircraft components and systems for customers that include commercial, general, and military original and aftermarket equipment manufacturers. The company's three operating segments are Integrated Systems (flight controls, fuel pumps, and gearbox solutions); Product Support (maintenance, repair, and overhaul); and Aerospace Structures (makes metallic and composite aerostructures and structural components). It operates through some 50 facilities around the world.

Operations

Triumph divides its business into three segments: Aerospace Structures (60% of net sales), Integrated Systems (30%), and Product Support (10%).

The Aerospace Structure segment makes wings, wing boxes, fuselage panels, horizontal and vertical tails, and subassemblies such as floor grids. It also engineers detailed structural design in metal and composites, including advanced composite and interior structures, joining processes such as welding, autoclave bonding and conventional mechanical fasteners and a variety of special processes, such as super plastic titanium forming, aluminum and titanium chemical milling, and surface treatments.

The Integrated Systems segment makes hydraulic, mechanical and electromechanical actuation, power and control. Its aerospace gearbox solutions include engine accessory gearboxes and helicopter transmissions. It also produces active and passive heat exchange technology; fuel pumps, fuel metering units and Full Authority Digital Electronic Control fuel systems; hydro-mechanical and electromechanical primary and secondary flight controls; and a broad spectrum of surface treatments.

The smaller Product Support segment provides ground maintenance, repair, and overhaul services. 

Geographic Reach

Pennsylvania-based Triumph has some 50 locations in 20 US states and seven other countries. It has international locations in Canada, France, Germany, Ireland, Mexico, Thailand, and the UK.

Sales and Marketing

US customers account for the majority of sales; Boeing is at the top of the list, generating around 35% of Triumph's total sales. In addition, Gulfstream Aerospace Corporation accounts for more than 10%. It serves mainly the original equipment manufacturer, military, airline, and air cargo industries.

Financial Performance

Triumph is in poor health amid declining sales and recurring net losses. In fiscal 2019 (ended March 31) sales grew 5% to $3.4 billion due to a production ramp-up on the Global 7500 wing program ahead of the unit's sale to Bombardier.

Triumph has not turned a net profit since fiscal 2015. Net loss decreased $103.6 million to $-321.8 million in fiscal 2019. The improvement related to the absence of intangible asset impairments ($525.2 million in fiscal 2018), partially offset by a $235.3 million loss on divestitures. Additionally, interest expense increase and tax benefit reduced.

Triumph's cash on grew $57.0 million in 2018, ending the year at $92.8 million. The company's operations used $174.4 million, while investing activities generated $174.4 million and financing yielded $32.5 million. Triumph sold of assets, drew on its credit facility, and issued debt to support its liquidity and maintain capital expenditures.

Strategy

To improve its faltering financial performance, Triumph has been divesting non-core assets, pursuing high-margin business, cutting costs, and trying to attract better talent. Improvements have been seen in the Global Hawk wing program and Boeing 747 and 767 programs. Triumph has also, importantly, extricated itself from six big, bad contracts that were inflicting punishing losses on the company. These were the Gulfstream G650 and G280, Bombardier 7500, Embraer E2, Bell 525, and Boeing 787 programs.

Non-core business exits have included the build-to-print, contract manufacturing business, and other cash-burdened programs; in total Triumph shed 13 of its 22 operating companies, leaving nine remaining split between its three operating segments.

Triumph Aerostructures, LLC

300 AUSTIN BLVD
Red Oak, TX 75154-4608
Phone: 1 (972) 515-8276

Stats

Employer Type: Privately Owned
Contracts Manager: Karla Batelaan
General Manager: Robert Harvey
General Manager: Scott Mispagel
Employees (This Location): 2,000
Employees (All Locations): 5,990

Major Office Locations

Red Oak, TX

Other Locations

Hawthorne, CA
Stuart, FL
Milledgeville, GA
Nashville, TN
Arlington, TX
Grand Prairie, TX
Red Oak, TX
Longview, WA