LIMERICK, Pa. – Marine industry supplier Teleflex Inc. (NYSE:TFX) saw its marine revenues decline during the third quarter ended Sept. 28, the company reported in a recent statement.
Revenues within the company’s Commercial Segment, of which its marine business is a part, dropped 13 percent to $101.6 million from $117.0 million in the same period last year. Core growth in sales of rigging services products of 9 percent was more than offset by a decline in sales of marine and power systems products, according to Teleflex. Currency translation contributed 1 percent, offset by dispositions of 1 percent.
During the third quarter, operating profit in the Commercial Segment increased to $7.1 million from $2.3 million, principally due to increases and favorable product mix in the rigging services business, according to the company. In addition, third quarter 2007 operating margin reflected $5 million of warranty, engineering and acquisition-related expenses that did not recur in the third quarter of 2008. Segment operating margin rose to 7.0 percent from 2.0 percent in the prior year quarter.
Teleflex calls it a “very good quarter”
Despite the marine business declines, the company was pleased with its overall results, driven by increases in its medical and aerospace segments. Third quarter revenues from continuing operations rose 30 percent to $595.9 million from $458.6 million in the third quarter of 2007 driven by acquisitions and a favorable currency impact. Income from continuing operations excluding special charges increased 41 percent to $44.3 million, compared to $31.4 million in the prior year quarter. Net income from continuing operations for the quarter increased to $42.3 million compared to a loss in the prior year.
“This was another very good quarter for Teleflex,” said Jeffrey P. Black, chairman and chief executive officer. “We continued to expand operating margins, generate strong cash flow from operations and achieve operational efficiencies. All three segments delivered solid financial performances and we executed well on our strategic initiatives.
“We are on track to achieve the top end of our previously stated range for full year earnings per share, excluding special charges. In addition, we expect cash flow from operations for the full year of approximately $260 million excluding the tax payment. Teleflex enters the last quarter of the year with solid fundamentals – an improved balance sheet, strong cash flow and a portfolio of businesses better-positioned to manage through what is likely to be a challenging economic environment.”
For the first nine months, Teleflex revenues from continuing operations increased 35 percent to $1.8 billion from $1.4 billion when compared to 2007. Income from continuing operations excluding special charges increased to $119.8 million, compared to $100.4 million in the prior year period. Net income from continuing operations for the first nine months rose to $103.1 million compared to $3.9 million in the prior year.
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