Teleflex boosts marine sales
LIMERICK, Pa. – Acquisitions in the marine market and elsewhere helped Teleflex Inc. post a positive fiscal 2008 first quarter, according to a statement from the company today.
An acquisition in rigging services contributed 7 percent to revenue growth in Teleflex’s Commercial Segment. Currency translation contributed 3 percent to revenue growth, which was offset by 1 percent decline from dispositions for the segment.
Marine product sales grew 2 percent for the first quarter. Rigging services posted an 11 percent jump. Those gains were more than offset with a 45 percent decline in power systems revenues, which are also part of the Commercial Segment.
“The Commercial Segment continues to manage through some tough end markets,” said Jeffrey Black, Teleflex chairman and chief executive officer. “As forecasted, we saw sales growth in the marine and rigging services businesses compared to prior year. This was more than offset by the decline in power systems in the North American truck market when compared to the strong first quarter last year.”
Overall, Commercial Segment revenues declined to $101.8 million from $103.2 million in the same period last year.
During the first quarter of 2008, operating profit in the Commercial Segment declined 48 percent, from $5.5 million to $2.8 million, principally due to operating costs and lower volumes in the power systems business, and to a lesser extent unfavorable product mix in the rigging services business compared to the prior year quarter.
Teleflex’s overall first quarter revenues from continuing operations increased 37 percent to $604.5 million from $440.3 million in the first quarter of 2007 primarily as a result of acquiring medical company Arrow International in the fourth quarter of 2007 and a favorable currency impact from the company’s international operations.
Income from continuing operations was $33.6 million compared to $33.6 million in the prior year quarter. Net income from continuing operations for the quarter declined to $22.9 million compared to $33.8 million in the prior year. This decline was primarily due to the impact of restructuring and transaction-related charges, principally related to the Arrow acquisition.
“Teleflex delivered another solid quarter in line with our plans for the year,” Black said.
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