Teleflex reports 4Q and year-end results

LIMERICK, Pa. – Fourth quarter revenues for marine steering, control and electronics components manufacturer Teleflex Inc., increased 18 percent, to $669.6 million, compared to $569.1 million for the same period in 2003, the company reported in a release yesterday.

The revenue increase included 6 percent from core growth. For the full year 2004, revenues from continuing operations increased to $2.49 billion compared to $2.15 billion in 2003, representing a 15 percent year over year increase of which 5 percent was from core growth, Teleflex said.

Cash flow from continuing operations for 2004 was $254.5 million, compared to $225.1 million realized in 2003 – a 13 percent increase. Free cash flow (cash flow from operations less capital expenditures and dividends) was a record $164.3 million, a 44 percent increase over 2003 free cash flow of $113.8 million.

“Overall, the fourth quarter operating performance of our core businesses was solid,” said Jeffrey P. Black, president and chief executive officer. “During 2004 we generated very strong free cash flow growth, executed our largest acquisition to date and began several actions to provide a solid base for future growth, including a restructuring program and several divestitures.

“While some of these actions have an adverse impact on operating results in the short term, they are strategically important to our long-term growth. While executing these actions we have maintained a strong balance sheet for the future.”

With significant special charges associated with restructuring and the sale of non-core assets, Teleflex reported a loss from continuing operations for the fourth quarter of 2004 of $24.3 million, or 60 cents per diluted share, and a loss from discontinued operations of $47.3 million or $1.17 per diluted share.

Income from continuing operations excluding special charges was $33.4 million or 82 cents per diluted share and the loss from discontinued operations excluding special charges was $6.2 million or 15 cents per diluted share.

The combined income from continuing operations and discontinued operations excluding special charges was 67 cents per diluted share. This compares with guidance of 64 cents to 74 cents per diluted share provided by the company when third quarter earnings were announced.

In 2003, income from continuing operations for the fourth quarter was $34.5 million or 86 cents per diluted share and the loss from discontinued operations for the fourth quarter was $4.7 million or 12 cents per diluted share. The fourth quarter of 2004 also included $2.6 million (pre-tax), or 4 cents per diluted share of expenses associated with Sarbanes-Oxley compliance.

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