Teleflex sees marine sales decline

LIMERICK, Pa. – While Teleflex Inc. (NYSE: TFX) reported “a solid balance sheet” for the third quarter, its marine sales took a beating, dragging down its Commercial Segment results.

While Commercial Segment revenues posted a 1-percent increase during the quarter to $270.2 million from $267.6 million in the same period last year, operating profit declined 44 percent to $9.2 million from $16.5 million when compared to the third quarter last year.

This decline primarily reflects a shift of revenue mix away from higher margin marine products during the quarter, incremental costs related to transfer of operations between two facilities and the bankruptcy of an automotive supply customer, the company reported in a recent statement.

Overall results

Overall company revenues from continuing operations for the third quarter increased 2 percent to $587.4 million, compared to $575.9 million for the third quarter of 2004. Income from continuing operations for the quarter was $35.7 million or 87 cents per diluted share, an increase of 52 percent over the prior year.

“Overall, the restructuring initiatives and portfolio actions we have taken in 2005 are generating good results,” said Jeffrey P. Black, president and chief executive officer. “That said, difficult conditions in the automotive and marine markets and the bankruptcy of an automotive customer led to disappointing results in our Commercial Segment this quarter. Despite a more cautious outlook for some of our end markets in the fourth quarter, we remain comfortable with the underlying performance of our businesses and satisfied that the actions taken in 2005 have positioned us for continued growth going forward.”

For the first nine months of 2005, revenues from continuing operations increased 7 percent to $1.87 billion from $1.75 billion for the same period in 2004. Income from continuing operations for the first nine months was $98.7 million or $2.41 per diluted share.

Net income for the third quarter of 2005 was $33.6 million or 82 cents per diluted share compared to net income of $17.5 million or 43 cents per diluted share for the prior year period. Net income for the first nine months of 2005 was $101.3 million or $2.47 per diluted share compared to net income of $81.1 million or $2.00 per diluted share for the same period of the prior year.

• For more of the latest news, click here.