LIMERICK, Pa. - Following “a major restructuring and portfolio realignment program” in 2005, Teleflex Inc. (NYSE: TFX) is entering the new year with a balance sheet that it says will allow it to pursue acquisitions in the years ahead.
The company, which manufactures products for the medical, aerospace, automotive, marine and industrial markets, anticipates diluted earnings per share from continuing operations before restructuring charges and options expense for the full year 2006 to be in the range of $4.05 to $4.25, it reported in a statement today.
Non-cash expense related to accounting for stock options is expected to be in the range of $7 to $8 million, or 12 to 14 cents per fully diluted share. Restructuring charges for the year are expected to be in the range of $18 to $20 million, or 28 to 31 cents per fully diluted share.
2006 is expected to be another record year for cash flow, with operating cash flow anticipated to increase by approximately 15 percent over 2005, according to Teleflex. This preliminary outlook excludes the impact of acquisitions that may occur during the year.
For the full year 2005, Teleflex now expects earnings per share from continuing operations excluding special charges and gain on sale of assets to be modestly below the company's previously-announced full year forecast of $3.65 to $3.80.
This news comes despite the fact that its Commercial Segment (which includes its marine business) turned in “a solid performance” in the fourth quarter - good news after a third quarter in which its marine sales took a beating, dragging down its Commercial Segment results due to a shift of revenue mix away from higher margin marine products.
The company continues to expect record cash flow from operations for the full year 2005 of close to $300 million, up from $238 million for the prior year.
"Our actions in 2005 leave us well positioned for continued growth in 2006," said Jeffrey P. Black, president and chief executive officer of Teleflex. "Our outlook for 2006 anticipates operating profit percentage growth in each of the three business segments in the mid to high teens, significant earnings leverage from a full year's impact of restructuring benefits, and solid revenue growth."
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