Triumph (TGI) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Triumph Group, Inc.

NEWS RELEASE

Contact:

John Bartholdson

Senior Vice President,

Chief Financial Officer

Phone (610) 251-1000

jbartholdson@triumphgroup.com

TRIUMPH GROUP REPORTS

THIRD QUARTER FISCAL 2006 RESULTS

•Net sales for third quarter fiscal 2006 increased 9% to $187.2 million

•Operating income in the third quarter fiscal 2006 increased 50% to $13.2 million

•Income from continuing operations for the third quarter fiscal 2006 increased 137% to $9.3 million

•Backlog increased 48% over prior year to $838.8 million

Wayne, PA – January 27, 2006 – Triumph Group, Inc. (NYSE: TGI) today reported that net sales from continuing operations for the third quarter of the fiscal year ending March 31, 2006 totaled $187.2 million, a nine percent increase from last year’s third quarter net sales from continuing operations of $171.3 million.  Income from continuing operations for the third quarter of fiscal 2006 increased 137 percent to $9.3 million, or $0.58 per diluted common share, versus $3.9 million, or $0.25 per diluted common share for the third quarter of the prior year.  During the quarter, the company generated $19.2 million of cash flow from operations.  Also, during the quarter, the company adjusted its effective income tax rate at which reversals of temporary differences will be taxed.  The adjustment resulted in a reduction of income tax expense in the quarter of $2.0 million.

Net sales from continuing operations for the first nine months of fiscal 2006 were $548.6 million, an eight percent increase over net sales of $506.6 million last year.  Income from continuing operations for the first nine months of fiscal 2006 increased 115 percent to $23.6 million, or $1.47 per diluted common share, compared to income from continuing operations of $10.9 million, or $0.69 per diluted common share in the prior year period.  During the nine months ended December 31, 2005, the company generated $26.3 million of cash flow from operations.

The Aerospace Systems segment reported net sales for the quarter of $141.6 million, compared to $121.2 million in the prior year period, an increase of seventeen percent.  Operating income for the third quarter of fiscal 2006 was $17.5 million, compared to $13.5 million for the prior year period,

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a twenty-nine percent increase.  The Aerospace Systems segment increased sales and operating income despite the delay in full production at Boeing Commercial Aircraft division until December.

The Aftermarket Services segment reported net sales for the quarter of $46.1 million, compared to $44.9 million in the prior year period, a three percent increase.  Operating income for the third quarter of fiscal 2006 was a loss of $0.1 million, compared to earnings of $2.6 million for the prior year period.  Solid performance by the core maintenance, repair and overhaul operations was offset by costs associated with new aerospace programs in the castings and manufacturing operations of the Aftermarket Services segment.

Richard C. Ill, Triumph’s President and Chief Executive Officer, said, “We are pleased to report higher sales and net earnings for the third quarter and the first nine months of fiscal 2006.  During the quarter, we delivered organic sales growth, increased backlog, and continued strength in cash flow performance.  That said, results in our Aftermarket Services segment continue to be negatively impacted as we focus on strategically altering the product mix of the castings and manufacturing operations in this segment.  However, we remain confident with the performance of our businesses and satisfied that the actions taken will improve profitability and position us for continued future growth.”

Commenting on the outlook for the year, Mr. Ill stated, “Based upon the strength of our operations and current market conditions, we continue to expect that fiscal 2006 earnings per share will be in the range of $1.75 to $2.00.”

As previously announced, Triumph will hold a conference call today at 8:30 a.m. (EST) to discuss the fiscal 2006 third quarter results.  The conference call will be available live and archived on the company’s website at http://www.triumphgroup.com  An audio replay will be available from January 27^th until February 3^rd by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #839492.

Triumph Group, Inc., headquartered in Wayne, Pennsylvania, designs, engineers, manufactures, repairs and overhauls aircraft components and accessories.  The company serves a broad, worldwide spectrum of the aviation industry, including commercial and regional airlines, air cargo carriers, as well as original equipment manufacturers of commercial, regional, business and military aircraft and aircraft components.

More information about Triumph can be found on the Internet at http://www.triumphgroup.com.

Statements in this release which are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including expectations of future performance, profitability, growth and earnings.  All forward-looking statements involve risks and uncertainties which could affect the company’s actual results and could cause its actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, the company.  Further information regarding the important factors that could cause actual results to differ from projected results can be found in Triumph’s reports filed with the SEC, including our Annual Report on Form 10-K for the year ended March 31, 2005.

FINANCIAL DATA (UNAUDITED) ON FOLLOWING 6 PAGES

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(in thousands, except per share data)

CONDENSED STATEMENTS OF INCOME

	Three Months Ended December 31,					Nine Months Ended December 31,
	2005		2004			2005		2004
Net Sales	$	187,221	$	171,278		$	548,551	$	506,611
Operating Income	13,203		8,814			40,150		25,141
Interest Expense and Other	3,086		3,189			9,445		9,656
Income Tax Expense	770		1,686			7,145		4,546
Income from Continuing Operations	9,347		3,939			23,560		10,939
Income (Loss) from Discontinued Operations	0		(6,080		)	0		(4,549		)
Net Income (Loss)	$	9,347	$	(2,141	)	$	23,560	$	6,390
Earnings Per Share - Basic:
Income from Continuing Operations	$	0.59	$	0.25		$	1.48	$	0.69
Income (Loss) from Discontinued Operations	$	0.00	$	(0.38	)	$	0.00	$	(0.29	)
Net Income (Loss)	$	0.59	$	(0.13	)	$	1.48	$	0.40
Weighted average common shares outstanding - Basic	15,912		15,881			15,909		15,870
Earnings Per Share - Diluted:
Income from Continuing Operations	$	0.58	$	0.25		$	1.47	$	0.69
Income (Loss) from Discontinued Operations	$	0.00	$	(0.38	)	$	0.00	$	(0.29	)
Net Income (Loss)	$	0.58	$	(0.13	)	$	1.47	$	0.40
Weighted average common shares outstanding - Diluted	16,052		15,994			16,038		15,957

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands, except per share data)

BALANCE SHEET

	December 31, 2005			March 31, 2005
Assets
Cash	$	4,578		$	4,844
Accounts Receivable, net	121,205			127,942
Inventory	234,924			217,234
Deferred Income Taxes	5,422			5,422
Prepaid Expenses and Other	4,521			3,887
Current Assets	370,650			359,329
Property and Equipment, net	232,328			234,123
Goodwill	273,155			273,476
Intangible Assets, net	50,827			56,227
Other	15,244			14,560
Total Assets	$	942,204		$	937,715
Liabilities & Stockholders’ Equity
Accounts Payable	$	59,214		$	65,211
Accrued Expenses	63,872			75,598
Income Taxes Payable	2,763			2,922
Current Portion of Long-Term Debt	8,081			1,740
Current Liabilities	133,930			145,471
Long-Term Debt, less current portion	154,320			156,042
Deferred Income Taxes and Other	104,109			109,539
Stockholders’ Equity:
Common Stock, $.001 par value, 50,000,000 shares authorized, 16,027,324 shares issued	16			16
Capital in excess of par value	259,805			259,448
Treasury Stock, at cost, 114,177 and 123,160 shares	(2,834		)	(3,057		)
Accumulated other comprehensive (loss) income	(652		)	306
Retained earnings	293,510			269,950
Total Stockholders’ Equity	549,845			526,663
Total Liabilities and Stockholders’ Equity	$	942,204		$	937,715

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FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

SEGMENT DATA

	Three Months Ended December 31,						Nine Months Ended December 31,
	2005			2004			2005			2004
Net Sales:
Aerospace Systems	$	141,606		$	121,185		$	416,130		$	362,691
Aftermarket Services	46,136			44,892			134,335			127,054
Other	0			6,394			0			21,591
Elimination of inter-segment sales	(521		)	(1,193		)	(1,914		)	(4,725		)
	$	187,221		$	171,278		$	548,551		$	506,611
Operating Income (Loss):
Aerospace Systems	$	17,505		$	13,533		$	50,947		$	39,442
Aftermarket Services	(127		)	2,572			0			6,133
Other	0			(3,856		)	0			(10,789		)
Corporate	(4,175		)	(3,435		)	(10,797		)	(9,645		)
	$	13,203		$	8,814		$	40,150		$	25,141
Depreciation and Amortization:
Aerospace Systems	$	5,607		$	4,892		$	16,621		$	14,229
Aftermarket Services	2,482			2,131			7,317			6,294
Other	0			474			0			1,979
Corporate	41			33			105			108
	$	8,130		$	7,530		$	24,043		$	22,610
Capital Expenditures:
Aerospace Systems	$	3,337		$	2,083		$	8,491		$	9,957
Aftermarket Services	3,210			1,654			8,496			3,550
Other	0			112			0			136
Corporate	268			22			301			56
	$	6,815		$	3,871		$	17,288		$	13,699

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Non-GAAP Financial Measure Disclosures

Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the three months ended December 31, 2005 was $21.3 million with a margin of 11.4%.  EBITDA for the three months ended December 31, 2004 was $16.3 million with a margin of 9.5%.  EBITDA for the nine months ended December 31, 2005 was $64.2 million with a margin of 11.7%. EBITDA for the nine months ended December 31, 2004 was $47.8 million with a margin of 9.4%.

Management believes that EBITDA provides the reader a good measure of cash generated from the operations of the business before any investment in working capital or fixed assets.

The following definition is provided for the non-GAAP financial measure identified above, together with a reconciliation of such non-GAAP financial measure to the most directly comparable financial measure calculated and presented in accordance with GAAP.

	Three Months Ended December 31,						Nine Months Ended December 31,
	2005			2004			2005			2004
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA):
Income from Continuing Operations	$	9,347		$	3,939		$	23,560		$	10,939
Add-back:
Income Tax Expense	770			1,686			7,145			4,546
Interest Expense and Other	3,086			3,189			9,445			9,656
Depreciation and Amortization	8,130			7,530			24,043			22,610
Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”)	$	21,333		$	16,344		$	64,193		$	47,751
Net Sales	$	187,221		$	171,278		$	548,551		$	506,611
EBITDA Margin	11.4		%	9.5		%	11.7		%	9.4		%

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	Three Months Ended December 31, 2005
	Total		Segment Data
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA):
Income from Continuing Operations	$	9,347
Add-back:
Income Tax Expense	770
Interest Expense and Other	3,086

				Aerospace Systems			Aftermarket Services			Corporate / Eliminations
Operating Income (Expense)	$	13,203		$	17,505		$	(127	)	$	(4,175	)
Depreciation and Amortization	8,130			5,607			2,482			41
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization (“EBITDA”)	$	21,333		$	23,112		$	2,355		$	(4,134	)
Net Sales	$	187,221		$	141,606		$	46,136		$	(521	)
EBITDA Margin	11.4		%	16.3		%	5.1		%	n/a

	Nine Months Ended December 31, 2005
	Total		Segment Data
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA):
Income from Continuing Operations	$	23,560
Add-back:
Income Tax Expense	7,145
Interest Expense and Other	9,445

				Aerospace Systems			Aftermarket Services			Corporate / Eliminations
Operating Income (Expense)	$	40,150		$	50,947		$	0		$	(10,797	)
Depreciation and Amortization	24,043			16,621			7,317			105
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization (“EBITDA”)	$	64,193		$	67,568		$	7,317		$	(10,692	)
Net Sales	$	548,551		$	416,130		$	134,335		$	(1,914	)
EBITDA Margin	11.7		%	16.2		%	5.4		%	n/a

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	Dec-05			Mar-05
Net Debt to Capital:
Calculation of Net Debt
Current Portion	$	8,081		$	1,740
Long term debt	154,320			156,042
Total Debt	162,401			157,782
Less: Cash and cash equivalents	4,578			4,844
Net Debt	157,823			152,938
Calculation of Capital
Net Debt	157,823			152,938
Stockholders’ equity	549,845			526,663
Total Capital	$	707,668		$	679,601
Percent of net debt to capital	22.3		%	22.5		%

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