By Andrea Shalal
WASHINGTON (Reuters) - Shares of Triumph Group, Inc , a supplier of aerospace components and systems, jumped over 13 percent on Tuesday after the company named Dan Crowley, a senior executive at Raytheon Co , as president and chief executive officer.
Crowley said he planned to help the company "raise its bar on performance" and would undertake a "top to bottom strategic review" aimed at boosting Triumph's operational performance and margins, while expanding its defence and international business.
Crowley will replace Richard Ill, effective Jan. 4. Ill founded Triumph and served has served as CEO since April 2015, after previously serving as CEO from 1993 until his retirement in July 2012. He will remain a member of the board of the Berwyn, Pennsylvania-based company.
Triumph shares surged percent on the New York Stock Exchange after the announcement and were trading 13.7 percent higher at $39.13 around midday.
Crowley, who held senior positions with Lockheed Martin Corp before joining Raytheon in 2010, told Reuters he would study the company's business areas closely before making recommendations on any portfolio changes to the board."Triumph is in need of some changes in operational execution and strategy," Crowley said. "But the overall market in which Triumph competes is still a very attractive market," with expected annual growth of 4 percent of 7 percent per year, spurred by what he called the "democratization of air travel."
He said he had been in touch with the CEOs of key customers, including Boeing Co , Northrop Grumman Corp , Airbus Group SE , Bombardier Inc , Gulfstream, a unit of General Dynamics Corp and Brazil's Embraer SA about his new role, and received positive reactions.
More From This Section
"It's a very competitive business, and Triumph knows that it has to raise its bar on performance," he said. He said major equipment manufacturers like Boeing were pressuring suppliers to improve cost, quality and delivery times, and he hoped Triumph could win one of Boeing's annual operational excellence awards.
He said Triumph had been, and would remain, active in the mergers & acquisitions market, but his initial focus would be on better integrating companies already acquired in recent years and assessing the strengths of the various business units.
RBC Capital Markets' Steven Cahall said the announcement was the catalyst that market had been waiting for.
"The street broadly feels it will take an outsider to shake things up and kickstart a meaningful operational improvement process," he wrote in a note to investors.
(Reporting by Andrea Shalal; Editing by Alan Crosby)