LIMERICK, Pa. – Teleflex Inc.’s revenues for the second quarter – ended June 27 – increased 13 percent to $653.4 million, compared to $577.9 million for the second quarter of 2003, the company said in a press release this morning.
Teleflex, which manufactures marine steering, control and electronics components along with other products, reported that its second-quarter Commercial segment sales were $359.0 million, an increase of 13 percent over the same period last year.
Segment results included revenue gains in all three product lines – Automotive, Marine and Industrial. Marine sales increased on higher volume for marine steering and other OEM products. Operating profit gains in Marine and Industrial offset the negative impact of price reductions, raw material price increases and other production expenses in the Automotive product line.
Net income in the quarter increased to $34.2 million compared to $31.8 million in the prior year, and diluted earnings per share were $0.84 compared with $0.80 for the same period a year ago. Results for the second quarter of 2004 included a gain of $0.07 per share from the divestiture of three businesses, according to the company.
Revenues in the first six months of 2004 increased 15 percent to $1.29 billion compared to $1.12 billion last year. Net income was $63.6 million in the first six months compared with $61.1 million for the same span in 2003. Diluted earnings per share were $1.57 compared with $1.54 per share for the same period in 2003.
"Given our strong revenue growth and solid cash flow, earnings for the quarter were disappointing," said Jeffrey P. Black, president and CEO of Teleflex. "While the Medical segment continued to deliver double-digit growth in revenues and earnings, we faced near-term challenges that increased expenses in both the Aerospace and Commercial segments."
"During the second half of the year we continue to expect solid progress in our Medical, Marine and Industrial product lines. While we believe the nature of costs experienced by our Aerospace product lines are behind us, market conditions cause us to remain cautious. The lowered expectations in our Automotive product line relate substantially to pedal products while our traditional and new products remain steady. Accordingly, at this time, we anticipate earnings for the full year to be in the range of $2.90 to $3.00."
Teleflex commented on second quarter 2004 results during a conference call this morning. The call will be archived and available on the company's Web site at www.teleflex.com. An audio replay will be available from July 15 until July 20 by calling 888-286-8010 (US/Canada) or 617-801-6888 (International) – passcode 97427562 – the company said.