LIMERICK, Pa. – Teleflex Inc.’s (NYSE:TFX) recreational marine business saw increased revenues during the third quarter ended Sept. 30, the company suggested in a recent report.
Commercial Segment revenues increased 8 percent in the third quarter of 2007 to $314.5 million from $290.4 million last year. The increase resulted from 2 percent core growth, a 3-percent benefit from currency and a 3-percent impact from acquisitions, according to the company.
Commercial Segment core revenue growth was driven by increased sales of driver controls and related products for the recreational marine aftermarket in North America and Europe, fluid systems for the automotive and truck markets and driver controls for truck and bus markets in Europe and Asia, the company stated.
Despite this, the company suggested it wasn’t thrilled with the margins its Commercial Segment delivered. Commercial Segment operating profit was $9.2 million down from $14.8 million in the prior year third quarter, due in large part, to over $4 million in provision for warranty costs and approximately $0.8 million in one-time acquisition related costs, as well as to increased engineering expense in advance of new product launches in several Commercial businesses and customer price reductions in automotive.
“Overall it was a good quarter for Teleflex,” said Jeffrey P. Black, chairman and chief executive officer of Teleflex. “Strong revenues and double-digit growth in operating profit in our Medical Segment, solid revenue growth across all three segments and good cash flow were somewhat tempered by weaker margins in our Aerospace and Commercial segments.”
Third quarter revenues were $656.1 million, up 8-percent from $605.5 million in the third quarter of 2006. Net loss for the third quarter 2007 was $57.0 million, compared to net income of $36.0 million in the third quarter of 2006.
For the first nine months of 2007, revenues from continuing operations increased 8 percent to $2.0 billion compared to revenues of $1.86 billion for the same period in 2006. Income from continuing operations for the first nine months of 2007 was $29.2 million or $0.74 per diluted share which includes a third quarter tax charge of approximately $90 million related to cash repatriation. This compares with income from continuing operations for the prior year period of $96.2 million or $2.39 per diluted share, according to the company.
Looking ahead to the balance of 2007, Black commented, “Short term, there are many moving parts in our financial model that will impact the fourth quarter, including integration and other charges in conjunction with the Arrow acquisition and the impact of reclassifying our automotive and industrial businesses as a discontinued operation. At the same time, we continue to expect our core operations to deliver results in line with our guidance for the full year. We will provide investors with additional details as soon as practicable.”
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