Teleflex to consolidate
LIMERICK, Pa. – Teleflex Inc. (NYSE:TFX) has begun to consolidate operations in its Commercial Segment to address an expectation of continued weakness in the marine and industrial markets, it reported in a statement Wednesday.
The company expects these actions will result in restructuring and restructuring related charges in the range of $10 million to $12 million before income taxes by the end of 2009, of which about 50 percent will be non-cash. This includes a charge of approximately $2 million planned for the fourth quarter of 2008, according to Teleflex.
In connection with this restructuring program, which is expected to be completed by the end of 2009, the company will consolidate manufacturing and distribution, eliminate approximately 150 net positions and exit certain product lines in the Commercial Segment with 2008 revenues of approximately $15 million, Teleflex reported. These actions are expected to generate annualized pre-tax savings of $4 million to $5 million beginning in 2010.
“Overall, Teleflex has performed well and remains on track to achieve the top end of our previously-stated guidance for full year 2008 earnings per share, excluding special charges,” said Jeffrey P. Black, chairman and CEO. “At the same time, it is important that we continue to adjust our businesses to reflect the expected impact of economic conditions on our customers and markets. These investments are necessary to better position the Commercial Segment to serve our customers in the years ahead.”
The company has provided full year 2008 guidance from continuing operations of $3.90 to $4.00 per diluted share, excluding special charges. Special charges for 2008 are now expected to be in the range of $0.53 to $0.56 per diluted share. Earnings per share, including special charges, is expected to be in the range of $3.34 to $3.47 per diluted share, Teleflex reported.
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