Teleflex’s marine business down in fourth quarter

LIMERICK, Pa. – Teleflex Inc.’s (NYSE: TFX) Commercial segment revenues declined 7 percent to $59.7 million during the fourth quarter ended Dec. 31 from $64.2 million in the same period of last year, the company reported in a statement earlier this week. The company’s marine business is contained with its Commercial segment.

Reductions in core revenue, which accounted for 4 percent of the decline, were principally a result of a decrease in sales of rigging and Marine OEM products, partially offset by sales of the modern burner unit to the U.S. military and marine aftermarket sales, the company explained. The impact of the marine gauge business divestiture contributed 4 percent to the decline. This was somewhat balanced by a favorable currency impact of 1 percent, according to Teleflex.

During the fourth quarter of 2009, operating profit in the Commercial segment declined to $3.7 million from $4.7 million in the prior year period, principally due to lower sales volumes, which more than offset the impact of cost reduction initiatives, Teleflex reported. Segment operating margin for the quarter was 6.2 percent versus 7.3 percent in the prior year quarter.

Teleflex revenues from continuing operations up 4 percent

For the fourth quarter 2009, Teleflex revenues from continuing operations were $515.0 million compared to $497.2 million in the fourth quarter of 2008, up 4 percent. The increase resulted principally from a favorable currency impact of 4 percent. Core revenue was up 2 percent in the medical segment and down 7 percent and 4 percent in the Aerospace and Commercial segments, respectively.

For the full year 2009, Teleflex revenues from continuing operations decreased 9 percent to $1,890.1 million from $2,066.7 million in 2008, principally due to a decline in core revenues in its Aerospace and Commercial businesses, and an unfavorable currency impact of 3 percent.

Net income attributable to common shareholders for the fourth quarter and full year 2009 was $42.7 million and $303.0 million, respectively. These results included a loss from discontinued operations of $5.3 million in the fourth quarter, and income from discontinued operations of $161.2 million for the full year 2009.

“2009 had its challenges, but as the calendar has changed to a new decade our company has changed as well,” said Jeffrey P. Black chairman and chief executive officer. “We are a company that reduced its exposure to cyclical industries through the divestiture of components of our Aerospace and Commercial segments, made progress with the FDA remediation, continued to make investments in areas that offer long-term growth potential, and executed very well financially. We are prepared to execute in 2010 as well.”

The company’s financial estimates for 2010 include total revenues in excess of $1.92 billion and diluted earnings per share from continuing operations excluding special items in the range of $4.10 to $4.25.

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