Triumph Declines as Boeing Rate Cut Reduce Annual ProfitJennifer Surane
Triumph Group Inc., a maker of fuselage parts for Boeing Co. 747s, declined the most in more than 23 months after saying production rate cuts on the jumbo jet will reduce full-year earnings.
Triumph fell 8.3 percent at the close in New York after executives on a conference call today said output reductions on Boeing’s biggest and most expensive model will cut 2014 earnings per share by 10 cents.
Boeing said in April that monthly output will drop to 1.75 aircraft from 2 in 2014 amid dwindling demand for the largest passenger planes and freighters. Chicago-based Boeing accounted for 45 percent of Triumph’s sales during its fiscal first quarter, down from 48 percent a year earlier, executives said.
Triumph Chief Executive Officer Jeffry Frisby said the Wayne, Pennsylvania-based company is also hunting for acquisitions, and sees “no shortage” of possible targets.
The shares closed at $77.22. Triumph has added 1.6 percent since April 19, when Boeing said it would cut production. Boeing, which declined 1 percent to $105.60 today, has risen 20 percent.