December 9, 2014

Spirit announces transfer of Gulfstream wing programs to Triumph Group

Spirit AeroSystems has reached an agreement to transfer the Gulfstream wing work packages at Spirit’s facility in Tulsa, Oklahoma, to Triumph Group, the transfer includes both the G650 and G280 wing programs. Spirit employees who are currently working on the Gulfstream programs will be offered positions with Triumph. “The Triumph Group emerged as the preferred owner of the Gulfstream wing programs following a rigorous bid process, and the deal offers compelling positives for both companies,” said Spirit AeroSystems President & CEO Larry Lawson . “We thoroughly evaluated all of our options and made the best decision for the company, our people and our customers. Subject to customary closing conditions, the transaction is expected to close in 2014. The agreement provides for Spirit to make a cash payment to Triumph at closing in the amount of US$160m. The transaction is an estimated loss in the range of US$205m to US$235m (US$1.45 to US$1.65 per diluted share). The Company estimates that the transaction will generate a cash tax benefit of approximately US$220m to US$230m which, if the closing occurs in 2014, will be fully realized in 2014 and 2015, with an overall favorable cash result of the transaction, including estimated closing costs, realized in the same period in the range of US$55m to US$65m. Spirit’s 2014 full year financial guidance, which was updated last quarter, of US$6.8 -US $6.9bn in revenue, US$3.35 – US$3.45 earnings per share, and approximately US$275m in free cash flow, excludes the financial impact of the work transfer and the impact of the deferred tax asset valuation release as a result of this transaction.



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