Teleflex Reports 1998 Results; Twenty-fourth Consecutive Record Year
10 February 1999
Teleflex Reports 1998 Results; Twenty-fourth Consecutive Record Year; Revenues Top $1.4 Billion; Net Income Up 18%
PLYMOUTH MEETING, Pa.--Feb. 10, 1999--Teleflex Incorporated today reported that revenues for the year ended December 27, 1998 increased 25% to $1.4 billion compared to $1.1 billion in 1997.Net income increased 18% to $82.6 million from $70.1 million the prior year. Diluted earnings per share increased to $2.15 in 1998 compared to $1.86 in 1997.
In the fourth quarter, revenues increased 23% to $385.8 million from $314.4 million in 1997. Net income increased 19% to $25.3 million. Diluted earnings per share were $.66 in 1998 compared to $.56 in 1997.
David S. Boyer, president and chief executive officer, said, "We achieved excellent growth in 1998, our 24th consecutive record year. The 25% increase in revenues and the 18% growth in net income was produced as a result of a balanced and diversified portfolio of businesses. The Aerospace Segment achieved the strongest increases. Commercial Segment growth was influenced heavily by an acquisition made in late 1997, and the Medical Segment made good progress in growing operating profits and margins."
The Commercial Segment, which contributed 45% of total revenues in 1998, increased sales 31%. The majority of the increase was due to an acquisition in Automotive, with smaller increases in Industrial and Marine.
The Medical Segment accounted for 24% of total revenues in 1998. Sales increased 5% primarily due to growth in the Surgical Devices product line.
The Aerospace Segment contributed 31% of total 1998 revenues. Sales jumped 38%, with strong growth achieved in both the Telair cargo products and the Sermatech turbine engine related products.
The figures are as follows:
COMPARATIVE SUMMARY OF REVENUES AND EARNINGS
Three Months Ended December 27, 1998 December 28, 1997
Revenues $385,845,000 $314,409,000
Operating profit $45,487,000 $39,807,000
Income before taxes $37,054,000 $31,594,000
Net income $25,271,000 $21,218,000
Earnings per share
Basic $.68 $.57
Diluted $.66 $.56
Average shares outstanding
Basic 37,427,000 37,076,000
Diluted 38,482,000 37,982,000
Year Ended December 27, 1998 December 28, 1997
Revenues $1,437,578,000 $1,145,773,000
Operating profit $159,052,000 $135,815,000
Income before taxes $124,760,000 $106,405,000
Net income $82,550,000 $70,072,000
Earnings per share
Basic $2.21 $1.91
Diluted $2.15 $1.86
Average shares outstanding
Basic 37,347,000 36,759,000
Diluted 38,425,000 37,661,000
BUSINESS SEGMENT INFORMATION
Three Months Ended December 27, 1998 December 28, 1997
Sales
Commercial Products $169,349,000 $129,430,000
Medical Products 90,031,000 84,055,000
Aerospace Products 126,465,000 100,924,000
----------- -----------
$385,845,000 $314,409,000
Operating Profit
Commercial Products $16,832,000 $16,134,000
Medical Products 12,120,000 10,618,000
Aerospace Products 16,535,000 13,055,000
---------- ----------
$45,487,000 $39,807,000
Year Ended December 27, 1998 December 28, 1997
Sales
Commercial Products $649,644,000 $497,366,000
Medical Products 338,305,000 323,114,000
Aerospace Products 449,629,000 325,293,000
----------- -----------
$1,437,578,000 $1,145,773,000
Operating Profit
Commercial Products $62,010,000 $61,562,000
Medical Products 41,879,000 35,466,000
Aerospace Products 55,163,000 38,787,000
---------- ----------
$159,052,000 $135,815,000
Teleflex is a diversified industrial company with annual sales approaching $1.5 billion. The company designs, manufactures and distributes quality engineered products and services for the automotive, marine, industrial, medical and aerospace markets worldwide. Teleflex employs more than 13,000 people in over 80 units worldwide.
Additional information about Teleflex can be obtained from the company's Web site on the Internet at www.teleflex.com.
Forward-looking information:
Statements in this news release, other than historical data, are considered forward-looking statements under the Private Securities Litigation Reform act of 1995. These statements are subject to various risks and uncertainties that could cause actual results to differ from those contemplated in the statements. These factors are discussed in the company's Securities and Exchange Commission filings.