Teleflex Announces Strong First Quarter Results
15 April 1999
Teleflex Announces Strong First Quarter Results; Net Income Grew 16% On 13% Increase in Revenues
PLYMOUTH MEETING, Pa.--April 14, 1999--Teleflex Incorporated announced today that revenues for the first quarter ended March 28, 1999 increased 13% to $392.2 million compared to $345.8 million for the first three months last year. Net income increased 16% to $23.1 million in the quarter from $19.9 million for the same period in 1998. Diluted earnings per share increased to 60 cents per share for the quarter compared to 52 cents per share a year ago.David S. Boyer, president and chief executive officer, said, "The excellent momentum we have in our core businesses is providing a solid foundation on which we can build future growth. In addition to the investments we make to keep that internal growth going strong, we continue to search for acquisitions for each of our operating segments. Our objective is to achieve 15% to 20% growth in revenues and earnings over the long term."
Solid double-digit sales growth in the Automotive, Marine and Industrial product lines led to a 13% overall increase in Commercial Segment sales versus the prior year. Virtually all of the growth was from core businesses. Operating profit rose 9% in the Commercial Segment, with significant improvement in Marine offsetting a decline in Automotive caused by a substantial ramp-up to meet demand for the new adjustable pedal. The company expects to open additional plant capacity by the fall for this new product.
Medical Segment sales increased 12% in the quarter with growth in both the Hospital Supply and the Surgical Devices product lines. A substantial portion of the sales growth came from acquisitions made in both product lines. An 8% rise in operating profits came from strong year-over-year improvement in Surgical Devices.
The Aerospace Segment achieved a 14% increase in operating profits in the first quarter on strong sales growth of 15%. Two product lines - Manufacturing, which produces cases, airfoils and other components for aero and ground-based turbines, and Repairs, a joint venture which overhauls compressor airfoils and components - achieved strong sales increases. Sales of cargo systems were lower than the year-ago quarter when there were several unusually large contracts in progress at once. Margins in the Aerospace Segment were down slightly as a result of the lower volume in cargo products, and because of the higher level of sales from the repairs joint venture.
The figures are as follows:
COMPARATIVE SUMMARY OF REVENUES AND EARNINGS
(Unaudited)
Three Months Ended March 28, 1999 March 29, 1998 Percent
Change
Revenues $392,190,000 $345,760,000 13%
Operating profit $43,190,000 $39,237,000 10%
Income before taxes $34,615,000 $30,551,000 13%
Net income $23,054,000 $19,858,000 16%
Earnings per share:
Basic $.61 $.53 15%
Diluted $.60 $.52 15%
Average common shares outstanding:
Basic 37,637,000 37,204,000 1%
Diluted 38,390,000 38,320,000 -
BUSINESS SEGMENT INFORMATION
(Unaudited)
Three Months Ended March 28, 1999 March 29, 1998 Percent
Change
Sales
Commercial Products $184,496,000 $162,594,000 13%
Medical Products $88,557,000 $79,344,000 12%
Aerospace Products $119,137,000 $103,822,000 15%
------------ ------------
Total $392,190,000 $345,760,000 13%
Operating Profit
Commercial Products $19,619,000 $18,054,000 9%
Medical Products $10,303,000 $9,497,000 8%
Aerospace Products $13,268,000 $11,686,000 14%
----------- -----------
Total $43,190,000 $39,237,000 10%
Teleflex At A Glance:
Teleflex is a diversified company serving the automotive, marine, industrial and aerospace industries worldwide. It designs, manufactures and distributes quality engineered products and services through its 80 business units around the world. Sales in 1998 were $1.4 billion. Additional information about Teleflex may be obtained at http:\\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.