Demand for marine products improving, reports Teleflex
LIMERICK, Pa. – Marine steering, control and electronics components manufacturer Teleflex Inc. experienced a 4-percent decline in net income for the third quarter ended Sept. 26, despite an improved demand for marine products, the company reported in a release today.
Net income in the quarter was $17.5 million, down from $18.2 million in the prior year, and diluted earnings per share were 43 cents compared to 45 cents in the prior year. Net income in the first nine months was $81.1 million compared to $79.3 million for the same period in 2003.
Teleflex said revenues in the third quarter increased 14 percent to $625.8 million, compared to $550.9 million for the same quarter in 2003. Revenues in the first nine months of 2004 were $1.9 billion, a 14-percent increase compared to $1.7 billion last year.
“The fundamentals of our business are strong,” said Jeffrey P. Black, president and CEO of Teleflex. “Revenues increased 14 percent. For the quarter, businesses representing 90 percent of our revenues delivered solid performances. In the Commercial Segment, increasing pressure on our Tier 1 automotive pedal systems and alternative fuel systems businesses resulted in losses in these businesses during the quarter. While the marine and industrial businesses in the Commercial Segment generally performed well, the losses in the automotive businesses caused a decline in operating profit for the Commercial Segment overall. These operating losses, combined with a loss in our Aerospace Segment’s Industrial Gas Turbine product line, amounted to $17 million in the quarter.”
Teleflex said it is taking actions to improve the financial results arising from underperforming businesses in part through aggressive cost saving initiatives. Costs associated with these actions and other one-time costs incurred in these businesses in the quarter were $3.3 million.
The company expects costs related to these actions in the fourth quarter to be in the range of $1.2 to $2.5 million. At the end of the quarter, Teleflex completed the divestiture of two product lines in the Tier 1 automotive and Industrial Gas Turbine Services businesses that had combined annualized revenues of $4 to $5 million.
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