Triumph Group
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#4699
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$2.02 B
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Triumph Group - 10-Q quarterly report FY


Text size:
United States
Securities and Exchange Commission
Washington, D.C. 20549

FORM 10-Q



[x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the Period Ended June 30, 1998.

or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the Transition Period From _________ to ________

Commission File Number: 1-12235
--------------

TRIUMPH GROUP, INC.
-------------------------------------------------------------
(Exact name of registrant as specified in its charter)

Delaware 51-0347963
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)

1255 Drummers Lane, Suite 200
Wayne, PA 19087-1565
- ---------------------------------------- ---------------
(Address of principal executive offices) (Zip Code)

(610) 975-0420
- -----------------------------------------------------------------------------
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter periods that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
----- -----

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.

Common Stock, par value $0.001 per share, 11,899,546 shares as of June 30, 1998
TRIUMPH GROUP, INC.
INDEX

Part I. Financial Information
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C>
Item 1. Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets 1
March 31, 1998 and June 30, 1998

Condensed Consolidated Statements of Income 3
Three months ended June 30, 1998 and 1997

Condensed Consolidated Statements of Cash Flows 4
Three months ended June 30, 1998 and 1997

Notes to Condensed Consolidated Financial Statements 6
June 30, 1998

Item 2. Management's Discussion and Analysis of Financial 9
Condition and Results of Operations

Part II. Other Information

Item 1. Legal Proceedings 13

Item 2. Changes in Securities 13

Item 3. Defaults upon Senior Securities 13

Item 4. Submission of Matters to a Vote of Security Holders 13

Item 5. Other Information 13

Item 6. Exhibits and Reports on Form 8-K 13

Signature Page 14

</TABLE>
Triumph Group, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands, except per share data)

<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
1998 1998
---- ----
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash $ 4,642 $ 4,118
Accounts receivable, net 63,433 56,554
Inventories 77,103 83,015
Prepaid expenses and other 1,298 1,960
Deferred income taxes 2,763 2,333
---------- ---------
Total current assets 149,239 147,980

Property and equipment, net 78,829 81,503

Excess of cost over net assets acquired, net 55,998 55,501
Intangible assets and other, net 17,379 16,960
---------- ---------

Total assets $301,445 $301,944
---------- ---------
---------- ---------
</TABLE>




-1-
Triumph Group, Inc.
Condensed Consolidated Balance Sheets (continued)
(dollars in thousands, except per share data)


<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
1998 1998
---- ----
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 27,396 $ 26,266
Accrued expenses 24,285 22,417
Income taxes payable 4,712 8,464
Current portion of long-term debt 675 672
---------- ---------
Total current liabilities 57,068 57,819

Long-term debt, less current portion 33,823 25,878
Deferred income taxes and other 27,675 27,702

Stockholders' equity:
Common stock, $.001 par value, 15,000,000
shares authorized, 8,547,236 and 8,551,011
shares issued and outstanding at March 31,
1998 and June 30, 1998, respectively. 9 9
Class D common stock convertible,
$.001 par value, 6,000,000 shares authorized,
3,348,535 shares issued and outstanding at
March 31, 1998 and June 30, 1998. 3 3
Capital in excess of par value 135,331 135,403
Retained earnings 47,536 55,130
---------- ---------
Total stockholders' equity 182,879 190,545
---------- ---------

Total liabilities and stockholders' equity $ 301,445 $ 301,944
---------- ---------
---------- ---------

</TABLE>



SEE ACCOMPANYING NOTES.


-2-
Triumph Group, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)


<TABLE>
<CAPTION>

THREE MONTHS ENDED JUNE 30,
---------------------------

1997 1998
---- ----
<S> <C> <C>
Net sales $ 71,856 $ 91,140

Operating costs and expenses:
Cost of products sold 50,757 63,023
Selling, general, and administrative 11,027 12,072
Depreciation and amortization 1,872 2,887
--------- ---------
63,656 77,982

Operating income 8,200 13,158
Interest expense 836 705
--------- ---------
Income before income taxes 7,364 12,453
Income tax expense 2,872 4,859
--------- ---------
Net income $ 4,492 $ 7,594
--------- ---------
--------- ---------

Earnings Per Share - Basic:
Net income $ 0.46 $ 0.64
--------- ---------
--------- ---------

Weighted average common shares outstanding -
Basic 9,750 11,898
--------- ---------
--------- ---------
Earnings Per Share - Assuming Dilution:
Net income $ 0.43 $ 0.60
--------- ---------
--------- ---------

Weighted average common shares outstanding -
Assuming Dilution 10,463 12,692
--------- ---------
--------- ---------
</TABLE>



SEE ACCOMPANYING NOTES.


-3-
Triumph Group, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)



<TABLE>
<CAPTION>

THREE MONTHS ENDED JUNE 30,
---------------------------
1997 1998
---- ----
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 4,492 $ 7,594
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Depreciation and amortization 1,872 2,887
Other amortization included in interest expense 34 35
Provision for doubtful accounts receivable 45 56
Provision for deferred income taxes 637 395
Interest on subordinated and junior subordinated
promissory notes paid by issuance of
additional notes 156 185
Changes in other current assets and liabilities, net of
acquisition of business:
Accounts receivable (3,261) 6,823
Inventories (7,231) (5,912)
Prepaid expenses and other current assets 247 (662)
Accounts payable, accrued expenses, and accrued
income taxes payable (2,677) 754
Other 242 59
------- -------
Net cash (used in) provided by operating activities (5,444) 12,214

INVESTING ACTIVITIES
Capital expenditures, net (3,866) (4,652)
Cost of business acquired, net of cash acquired (2,101) -
------- -------
Net cash used in investing activities (5,967) (4,652)


</TABLE>



-4-
Triumph Group, Inc.
Condensed Consolidated Statements of Cash Flows (continued)
(dollars in thousands)
(unaudited)


<TABLE>
<CAPTION>

THREE MONTHS ENDED JUNE 30,
---------------------------
FINANCING ACTIVITIES 1997 1998
---- ----
<S> <C> <C>
Net increase (decrease) in revolving credit facility $ 6,366 $ (7,793)
Proceeds from issuance of long-term debt 5,000 -
Repayment of debt and capital lease obligations (3) (340)
Payments of deferred financing costs - (25)
Proceeds from exercise of stock options - 72
-------- --------
Net cash provided by (used in) financing activities 11,363 (8,086)
-------- --------

Decrease in cash (48) (524)
Cash at beginning of period 993 4,642
-------- --------

Cash at end of period $ 945 $ 4,118
-------- --------
-------- --------

NONCASH INVESTING ACTIVITIES
Covenant not to compete contract liability
related to acquisition $ 1,800 -

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid for income taxes $ 2,146 $ 712
Cash paid for interest 588 491

</TABLE>


SEE ACCOMPANYING NOTES.


-5-
Triumph Group, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars in thousands, except per share data)
(Unaudited)


1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three months ended June 30, 1998 are
not necessarily indicative of the results that may be expected for the fiscal
year ended March 31, 1999. For further information, refer to the consolidated
financial statements and footnotes thereto included in Triumph Group, Inc.'s
(the "Company") Annual Report on Form 10-K for the year ended March 31, 1998.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

The Company's aviation segment designs, engineers, manufactures, repairs,
overhauls and distributes aircraft components for commercial airlines, air cargo
carriers, and original equipment manufacturers on a worldwide basis. The
Company's metals segment manufactures, machines, processes, and distributes
metal products to customers in the computer, construction, container, farm
equipment and office furniture industries, primarily within North America.

NEW ACCOUNTING STANDARDS

Effective April 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130 "Reporting Comprehensive Income", ("SFAS No. 130"), which
establishes standards for reporting and displaying comprehensive income and its
components. Comprehensive income includes all changes in stockholder's equity
during a period, except those resulting from investments by and distributions to
owners. The adoption of SFAS No. 130 had no impact on the Company's net income
or shareholder's equity.

In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 131, "Disclosures about Segments of an
Enterprise and Related Information" ("SFAS No. 131"). SFAS No. 131 requires
disclosure of certain information about operating segments, products and
services, geographic areas of operations and major customers. The Company is
required to adopt this statement as of the end of the fiscal year ending March
31, 1999. The Company is evaluating the effects of SFAS No. 131 on its financial
statement disclosures. SFAS No. 131 will have no effect on the Company's results
of operations, financial condition, capital resources or liquidity.

USE OF ESTIMATES

The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.


-6-
Triumph Group, Inc.
Notes to Condensed Consolidated Financial Statements (continued)
(dollars in thousands, except per share data)
(Unaudited)


3. INVENTORIES

The components of inventories are as follows:

<TABLE>
<CAPTION>

MARCH 31, JUNE 30,
1998 1998
---- ----
<S> <C> <C>
Raw materials $23,665 $27,790
Work-in-process 26,796 27,658
Finished goods 27,228 28,153
------- -------
Total inventories at FIFO cost 77,689 83,601
Less allowance to reduce certain current
FIFO costs to LIFO basis 586 586
------- -------
Total inventories $77,103 $83,015
------- -------
------- -------
</TABLE>

Approximately 12% and 14% of the inventory is valued using the LIFO method at
March 31, 1998 and June 30, 1998, respectively.

4. LONG-TERM DEBT

Long-term debt consists of the following:
<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
1998 1998
---- ----
<S> <C> <C>
Revolving credit facility $17,720 $ 9,927
Subordinated promissory notes 10,964 11,149
Industrial revenue bonds 5,000 4,665
Other debt and capital lease obligations 814 809
------- -------
34,498 26,550
Less current portion 675 672
------- -------
$33,823 $25,878
------- -------
------- -------
</TABLE>

5. COMMITMENTS AND CONTINGENCIES

Certain of the Company's business operations and facilities are subject to a
number of federal, state, and local environmental laws and regulations. The
Company is indemnified for environmental liabilities related to assets purchased
from IKON Office Solutions, Inc. (formerly Alco Standard Corporation) which
existed prior to the acquisition of such assets and any unidentified
environmental liabilities which arise subsequent to the date of settlement
through July 22, 2000, arising from conditions or activities existing at these
facilities prior to the acquisition. In the opinion of management, there are no
significant environmental concerns which would have a material effect on the
financial condition or operating results of the Company which are not covered by
such indemnification.

The Company is involved in certain litigation matters arising out of its normal
business activities. In the opinion of management, the ultimate resolution of
such litigation will not have a material effect on the financial condition or
operating results of the Company.


-7-
Triumph Group, Inc.
Notes to Condensed Consolidated Financial Statements (continued)
(dollars in thousands, except per share data)
(Unaudited)


6. EARNINGS PER SHARE

The following is a reconciliation between the weighted average outstanding
shares used in the calculation of basic and diluted earnings per share:

<TABLE>
<CAPTION>

THREE MONTHS ENDED
JUNE 30,

(in thousands) 1997 1998
---- ----
<S> <C> <C>
Weighted average common shares outstanding 9,750 11,898
Net effect of dilutive stock options 63 144
Net effect of dilutive warrant 650 650
------ ------
Weighted average common shares outstanding -
assuming dilution 10,463 12,692
------ ------
------ ------
</TABLE>

7. SUBSEQUENT EVENTS

During July 1998, the Company acquired all of the outstanding stock of Nu-Tech
Industries, Inc. ("Nu-Tech") which specializes in producing complex structural
components for the commercial and military aircraft market; machining of
precision parts from aluminum extrusions; and high speed machining of precision
parts from alloys such as titanium and stainless steel. Nu-Tech operates
facilities located in the Kansas City metropolitan area. The purchase price of
approximately $30 million, subject to adjustment, includes cash paid at closing
and a long term liability to the former owners. The cash paid at closing was
funded by borrowings under the Company's credit facility.

Effective August 3, 1998 the Company increased its authorized shares of Common
stock to 50 million shares from 15 million shares.



-8-
Management's Discussion And Analysis of
Financial Condition and Results of Operations

(The following discussion should be read in conjunction with the Consolidated
Financial Statements contained elsewhere herein.)

THREE MONTHS ENDED JUNE 30, 1998 COMPARED TO THREE MONTHS ENDED JUNE 30, 1997

Aviation Group

Net sales. Net sales for the Aviation Group increased by $25.2 million,
or 51.5%, to $74.1 million for the first quarter of fiscal 1999 from $48.9
million for the first quarter of fiscal 1998. This increase was primarily due to
the inclusion of an aggregate of $26.4 million and $0.8 million in net sales for
Frisby Aerospace, Inc. ("Frisby"), Hydro-Mill Co. ("Hydro-Mill"),
Stolper-Fabralloy Company ("Stolper") and JDC Company ("JDC") in the first
quarter of fiscal 1999 and 1998, respectively. The increase is partially offset
by a reduction in sales due to the sale of the Company's Air Lab division ("Air
Lab") in the second quarter of fiscal 1998. Air Lab had sales of $1.6 million
for the first quarter of fiscal 1998. Net sales for the other operating
divisions and subsidiaries in the Aviation Group, experienced a 2.5% increase in
net sales over the prior year period. Increased orders of aircraft components
from OEMs accounted for the increase in net sales in the Aviation Group.

Costs of products sold. Costs of products sold for the Aviation Group
increased by $16.9 million, or 51.7%, to $49.5 million for the first quarter of
fiscal 1999 from $32.7 million for the first quarter fiscal 1998. This increase
was primarily due to the inclusion of $18.0 million and $0.4 million in the
first quarter of fiscal 1999 and 1998, respectively, of costs of products sold
associated with net sales generated by Frisby, Hydro-Mill, Stolper and JDC. The
remaining increase is associated with the increase in net sales of the remaining
operating divisions and subsidiaries in the Aviation Group, offset by a
reduction of $1.1 million due to the sale of Air Lab.

Gross profit. Gross profit for the Aviation Group increased by $8.3
million, or 51.2%, to $24.5 million for the first quarter of fiscal 1999 from
$16.2 million for the first quarter of fiscal 1998. This increase was primarily
due to the inclusion of $8.4 million and $0.4 million in the first quarter of
fiscal 1999 and 1998, respectively, of gross profit on the net sales generated
by Frisby, Hydro-Mill, Stolper and JDC. The remaining increase was generated on
the increased sales volume of the other operating divisions and subsidiaries in
the Aviation Group offset by the reduction of gross profit due to the sale of
Air Lab. As a percentage of net sales, gross profit for the Aviation Group was
33.1% and 33.2% for the first quarter of fiscal 1999 and 1998, respectively.

Selling, general and administrative expenses. Selling, general and
administrative expenses for the Aviation Group increased by $1.5 million, or
21.9%, to $8.5 million for the first quarter of fiscal 1999 from $7.0 million
for the first quarter of fiscal 1998, primarily due to the Frisby, Hydro-Mill,
Stolper and JDC acquisitions.

Depreciation and amortization. Depreciation and amortization for the
Aviation Group increased by $1.0 million, or 63.2%, to $2.6 million for the
first quarter of fiscal 1999 from $1.6 million for the first quarter of fiscal
1998, primarily due to the assets acquired in connection with the Frisby,
Hydro-Mill, Stolper and JDC acquisitions.

Operating income. Operating income for the Aviation Group increased by
$5.8 million, or 75.2%, to $13.4 million for the first quarter of fiscal 1999
from $7.7 million for the first quarter of fiscal 1998. This increase was
primarily due to the addition of net sales and profits generated by Frisby,
Hydro-Mill, Stolper and JDC, partially offset by the sale of assets of Air Lab.
All other operating divisions and subsidiaries in the Aviation group experienced
a 10.0% improvement in operating income over the prior year. As a percentage of
net sales, operating income for the Aviation Group was 18.1% for the first
quarter of fiscal 1999 and 15.7% for the first quarter of fiscal 1998.

-9-
Management's Discussion And Analysis of
Financial Condition and Results of Operations
(continued)

Metals Group

Net sales. Net sales for the Metals Group decreased by $5.9 million, or
25.7%, to $17.1 million for the first quarter of fiscal 1999 from $23.0 million
for the first quarter of fiscal 1998. This decrease was due to the sale of the
assets at the end of fiscal 1998 of the Deluxe Specialties Mfg. division
("Deluxe"), as well as a lower activity level in the remaining operations.
Deluxe had sales of $2.9 million in the first quarter of fiscal 1998.

Costs of products sold. Costs of products sold for the Metals Group
decreased by $4.6 million, or 25.6%, to $13.5 million for the first quarter of
fiscal 1999 from $18.1 million for the first quarter of fiscal 1998. This
decrease was due to the sale of Deluxe, as well as a lower activity level in the
remaining operations. Deluxe had $2.2 million of cost of products sold in the
first quarter of fiscal 1998.

Gross profit. Gross profit for the Metals Group decreased by $1.3
million, or 26.2%, to $3.6 million for fiscal 1999 from $4.9 million for the
prior year period, due to the reasons discussed above. As a percentage of net
sales, gross profit for the Metals Group was 21.1% and 21.2% for the first
quarter of fiscal 1999 and fiscal 1998, respectively.

Selling, general and administrative expenses. Selling, general and
administrative expenses for the Metals Group decreased by $0.5 million or 16.1%
to $2.6 million from $3.1 million in the first quarter of fiscal 1998, mainly
due to the sale of Deluxe.

Depreciation and amortization. Depreciation and amortization for the
Metals Group remained unchanged at $0.3 million for the first quarter of fiscal
1999 from the first quarter of fiscal 1998.

Operating income. Operating income for the Metals Group decreased by
$0.8 million, or 50.8%, to $0.8 million for the first quarter of fiscal 1999
from $1.5 million for the first quarter of fiscal 1998, due to the reasons
discussed above. As a percentage of net sales, operating income for the Metals
Group was 4.4% and 6.7% for the first quarter of fiscal 1999 and 1998,
respectively.

Overall Results

Corporate expenses. Corporate expenses remained unchanged at $1.0
million for the first quarter of fiscal 1999 and 1998.

Interest expense. Interest expense decreased by $0.1 million, or 15.7%,
to $0.7 million for the first quarter of fiscal 1999 from $0.8 million for the
first quarter of fiscal 1998. This decrease was primarily due to reduced debt
levels associated with the application of the proceeds from the public offering
in November 1997 of shares of the Company's Common stock and the proceeds from
the sales of Air Lab and Deluxe, partially offset by the acquisitions of Frisby,
Hydro-Mill, Stolper and JDC, the cash portions of which were financed by
borrowings under the Company's credit agreement.

Income tax expense. The effective tax rate was 39.0% for the first
quarter of both fiscal 1999 and 1998.

Net income. Net income increased by $3.1 million, or 69.1%, to $7.6
million for the first quarter of fiscal 1999 from $4.5 million for the first
quarter of fiscal 1998. The increase in first quarter 1999 net income was
primarily attributable to the acquisitions of Frisby, Hydro-Mill, Stolper and
JDC and the increase in income for the Aviation Group as a whole.

-10-
Management's Discussion And Analysis of
Financial Condition and Results of Operations
(continued)

Liquidity and Capital Resources

The Company's working capital needs are generally funded through cash
flows from operations and borrowings under its credit arrangements. The Company
generated approximately $12.2 million of cash flows from operating activities
for the three months ended June 30, 1998. The Company used approximately $4.7
million in investing activities and $8.1 million in financing activities for
the three months ended June 30, 1998. As of June 30, 1998, $113.5 million was
available under the Company's $125.0 million credit facility (the "Credit
Facility"). On June 30, 1998, an aggregate amount of approximately $9.9 million
was outstanding under the Credit Facility, $6.0 million of which was accruing
interest at LIBOR plus applicable basis points totaling 5.9875% per annum, and
$3.9 million of which was accruing interest at the prime rate of 8.5% per annum.
Amounts repaid under the Credit Facility may be reborrowed.

On July 16, 1998, the Company acquired all of the outstanding stock of
Nu-Tech Industries, Inc. ("Nu-Tech") which specializes in producing complex
structural components for the commercial military aircraft market; machining of
precision parts from aluminum extrusions; and high speed machining of precision
parts from alloys such as titanium and stainless steel. Nu-Tech operates
facilities located in the Kansas City metropolitan area. The cash portion of the
purchase price of approximately $30.0 million was funded by borrowings under the
Company's Credit Facility.

Capital expenditures were approximately $4.7 million for the three
months ended June 30, 1998 primarily for manufacturing machinery and equipment
for the Aviation Group. The Company funded these expenditures through borrowings
under its Credit Facility. The Company expects capital expenditures to be
approximately $22.0 million for its fiscal year ending March 31, 1999. The
expenditures are expected to be used primarily to expand capacity at several
facilities in the Aviation Group.

The Company believes that cash generated by operations and borrowings
under the Credit Facility will be sufficient to meet anticipated cash
requirements for its current operations. However, the Company has a stated
policy to grow through acquisition and is continuously evaluating various
acquisition opportunities. As a result, the Company currently is pursuing the
potential purchase of a number of candidates. In the event that more than one of
these transactions are successfully consummated, the availability under the
Credit Facility might be fully utilized and additional funding sources may be
needed. There can be no assurance that such funding sources will be available to
the Company.

YEAR 2000 DATE CONVERSION

The year 2000 issue exists because many computer systems and
applications use two-digit date fields to designate a year. As the century date
change occurs, date-sensitive systems may recognize the year 2000 as 1900, or
not at all. This inability to recognize or properly treat the year 2000 may
cause systems to process financial and operational information incorrectly.

The Company recognizes the issue and has engaged the review and
modification procedures necessary to make its systems Year 2000 compliant. Each
operating unit is taking the lead for its own conversion and most of the
conversion activities are occurring in conjunction with normal sustaining
activities.

Conversions are planned to be completed by the end of Fiscal 1999. The
Company does not anticipate that internal Year 2000 conversion issues will
materially impact operations or operating results.


-11-
FORWARD LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 relating to the Company's
future operations and prospects, including statements that are based on current
projections and expectations about the markets in which the Company operates,
and management's beliefs concerning future performance and capital requirements
based upon current available information. Such statements are based on
management's beliefs as well as assumptions made by and information currently
available to management. When used in this document, words like "may", "might",
"will", "expect", "anticipate", "believe", "potential", and similar expressions
are intended to indentify forward looking statements. Actual results could
differ materially from management's current expectations and there can be no
assurance that additional capital will not be required or that additional
capital, if required, will be available on reasonable terms, if at all, at such
times and in such amounts as may be needed by the Company. In addition to these
factors, among other factors that could cause actual results to differ
materially are uncertainties relating to the integration of acquired businesses,
general economic conditions affecting the Company's two business segments,
dependence of certain of the Company's businesses on certain key customers as
well as competitive factors relating to the aviation and metals industries. For
a more detailed discussion of these and other factors affecting the Company, see
the risk factors described in the Company's Registration Statement on Form S-3
filed with Securities and Exchange Commission in the November 1997 and the
Company's Annual Report on Form 10-K, for the year ended March 31, 1998, filed
with the SEC in June 1998.


-12-
TRIUMPH GROUP, INC.

Part II. Other Information

Item 1. Legal Proceedings

Not applicable

Item 2. Changes in Securities

Not applicable

Item 3. Defaults upon Senior Securities

Not applicable

Item 4. Submission of Matters to a Vote of Security Holders

Not applicable

Item 5. Other Information

Stockholder Proposals

If any stockholder wishes to present a proposal to the 1999
Annual Meeting of stockholders that is not included in the
Company's proxy statement relating to such meeting and fails to
submit such proposal to the Secretary of the Company on or
before May 8, 1999, then the Company will be allowed to use its
discretionary voting authority when the proposal is raised at
the Annual Meeting without any discussion of the matter in its
proxy statement.

Item 6. Exhibits and Reports on Form 8-K

A. Exhibits

(10.1) Nu-Tech Industries Holding Company Stock Purchase
Agreement
(10.2) Shareholders Purchase Agreement
(27) Financial Data Schedule


B. Reports on Form 8-K

The Company did not file any reports on Form 8-K during the three
months ended June 30, 1998.


-13-
Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


Triumph Group, Inc.
------------------------------------------------
(Registrant)


/s/ Richard C. Ill
------------------------------------------------
Richard C. Ill, President & CEO


/s/ John R. Bartholdson
------------------------------------------------
John R. Bartholdson, Senior Vice President & CFO
(Principal Financial Officer)


/s/ Kevin E. Kindig
------------------------------------------------
Kevin E. Kindig, Controller
(Principal Accounting Officer)


Dated: August 13, 1998






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