Teleflex revenue up despite marine sales decline
LIMERICK, Pa. – Despite a decline in marine and power systems revenue, Teleflex Inc. (NYSE:TFX) saw substantial overall revenue increases during the second quarter ended June 29 and raised its full year financial outlook, the company reported in a recent statement.
Teleflex’s Commercial Segment revenues declined 8 percent to $109.6 million during the second quarter from $118.5 million in the same period last year. Core growth in sales of rigging services products of 12 percent were more than offset by a decline in marine and power systems revenues, according to the company.
During the second quarter, operating profit in the Commercial Segment declined 7 percent to $9.5 million from $10.2 million, principally due to lower volumes in the marine and power systems businesses and unfavorable currency impact, partially offset by volume increases and favorable product mix in the rigging services business compared to the prior year quarter, the company stated.
These declines, however, were tempered by growth in the company’s other segments. For the second quarter, Teleflex reported total revenues from continuing operations of $624.1 million, up 38 percent when compared to the second quarter of 2007. Revenue growth from acquisitions was 34 percent and the positive impact of currency was 4 percent. Core revenue growth of 3 percent for the Medical Segment and 5 percent for the Aerospace Segment was offset by a decline in revenues for the Commercial Segment.
Net income from continuing operations for the quarter increased 14 percent to $37.8 million compared to $33.2 million in the prior year.
“We are pleased with our second quarter and year to date financial results as both our Medical and Aerospace segments delivered strong financial performances and the Commercial Segment managed well in challenging market conditions,” said Jeffrey P. Black, chairman and chief executive officer of Teleflex. “During the quarter we benefited from sales growth in international markets, continued operating margin expansion, and achieved operational efficiencies related to the integration of Arrow and other actions.”
For the first six months, Teleflex revenues from continuing operations increased 38 percent to $1.2 billion from $0.9 billion when compared to 2007. Net income from continuing operations for the first six months declined to $60.7 million compared to $67.1 million in the prior year.
The company raised its full year 2008 guidance from continuing operations to $3.90 to $4.00 per diluted share, excluding special charges, an increase of 20 percent to 23 percent compared to prior year. This compares to the company’s previous guidance of $3.70 to $3.90 per diluted share excluding special charges which were expected to be in the range of $0.60 to $0.67, it stated.
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