Boeing supplier Triumph Group (TGI -8.4%) says it will likely book ~$68M in pre-tax additional program costs in FY14 thanks to "reductions to the profitability estimates of the current 747-8 production lot."
The costs will be spread out as follows: FQ2, $0.53/share; FQ3, $0.14/share; FQ4, $0.16/share.
CEO Jeffry Frisby is "disappointed in [TGI's] recent execution on the 747 program," but notes that the company has "already taken several actions, including the development of a detailed game plan to reduce cost and improve quality and on-time delivery in a sustainable way." (PR)
United Technologies (UTX +0.5%) finishes the day in the green after announcing earlier that it's reached an agreement to sell its former Goodrich pump and engine control systems business to Triumph Group (TGI +3.8%). The deal is expected to close in Q113. The sale of the unit was one of the divestitures required by regulatory authorities as a condition of UTX's acquisition of Goodrich Corporation.
Aircraft component maker Triumph Group (TGI +2.3%) moves higher after Credit Suisse called it "one of the most compelling names in commercial aerospace," and boosted its forecast after meeting with management. The firm says it's increasingly confident with the company's margins, and thinks consensus estimates will be upped in FY13.