Teleflex Reports Strong Second Quarter
15 July 1999
TELEFLEX REPORTS STRONG SECOND QUARTER; REVENUES INCREASE 16%, NET INCOME UP 22%
PLYMOUTH MEETING, Pa.--July 14, 1999--Teleflex Incorporated today reported that revenues for the second quarter ended June 27, 1999 increased 16% to $421.1 million compared to $363.0 million for the same three months last year. Net income increased 22% to $25.9 million in the quarter from $21.2 million for the same period in 1998. Diluted earnings per share increased to 67 cents per share for the quarter compared to 55 cents per share a year ago.Revenues for the first six months of 1999 increased 15% to $813.3 million compared to $708.8 million last year. Net income increased 19% to $48.9 million in the first six months compared with $41.1 million for the same period in 1998. Diluted earnings per share increased to $1.27 from $1.07 per share for the same period in 1998.
David S. Boyer, president and chief executive officer, said, "We are very pleased with results for the second quarter, particularly in the Commercial Segment. Our core businesses generated solid growth with new products and good market penetration, and we supplemented that growth with selective acquisitions. Teleflex is well positioned to continue growing in the second half of 1999."
The Commercial Segment increased sales 20% over the year-ago quarter, with nearly all of the increase generated from existing businesses. The Segment contributed 49% of total revenues. The Automotive product line benefited from a continued strong market for passenger cars and light trucks. Good volume in new Marine products added significantly to results. Commercial operating margin improved in the current quarter to 10.8% despite continued investment in the new Adjustable Pedal System.
Medical Segment sales increased 11% in the quarter, and accounted for 22% of total revenues. Most of the sales growth came from acquisitions. Operating profit grew 26% and margins improved significantly to 13.7%, up from 12.1% a year ago, as a result of higher margins on core products in both Hospital Supply and Surgical Devices.
Aerospace Segment sales increased 14% from the second quarter of 1998, and contributed 29% of total revenues. A majority of the growth was from core businesses. Aerospace operating profits rose modestly but operating margins declined from a year ago because of strong revenue growth in the joint venture which repairs compressor airfoils and components, and also due to lower volume in cargo systems.
The figures are as follows:
COMPARATIVE SUMMARY OF REVENUES AND EARNINGS
(Unaudited)
Percent
Three Months Ended June 27, 1999 June 28, 1998 Change
Revenues $421,126,000 $363,011,000 16%
Operating profit $48,318,000 $41,242,000 17%
Income before taxes $39,292,000 $32,533,000 21%
Net income $25,854,000 $21,244,000 22%
Earnings per share
Basic $.69 $.57 21%
Diluted $.67 $.55 22%
Average shares outstanding
Basic 37,743,000 37,365,000 1%
Diluted 38,528,000 38,459,000 -
Percent
Six Months Ended June 27, 1999 June 28, 1998 Change
Revenues $813,316,000 $708,771,000 15%
Operating profit $91,508,000 $80,479,000 14%
Income before taxes $73,907,000 $63,084,000 17%
Net income $48,908,000 $41,102,000 19%
Earnings per share
Basic $1.30 $1.10 18%
Diluted $1.27 $1.07 19%
Average shares outstanding
Basic 37,690,000 37,285,000 1%
Diluted 38,459,000 38,390,000 -
BUSINESS SEGMENT INFORMATION
(Unaudited)
Percent
Three Months Ended June 27, 1999 June 28, 1998 Change
Sales
Commercial Products $204,301,000 $170,797,000 20%
Medical Products $94,395,000 $84,911,000 11%
Aerospace Products $122,430,000 $107,303,000 14%
------------ -------------
Total $421,126,000 $363,011,000 16%
Operating Profit
Commercial Products $22,072,000 $18,073,000 22%
Medical Products $12,952,000 $10,285,000 26%
Aerospace Products $13,294,000 $12,884,000 3%
----------- -----------
Total $48,318,000 $41,242,000 17%
Percent
Six Months Ended June 27, 1999 June 28, 1998 Change
Sales
Commercial Products $388,797,000 $333,391,000 17%
Medical Products $182,952,000 $164,255,000 11%
Aerospace Products $241,567,000 $211,125,000 14%
------------ ------------
Total $813,316,000 $708,771,000 15%
Operating Profit
Commercial Products $41,691,000 $36,127,000 15%
Medical Products $23,255,000 $19,782,000 18%
Aerospace Products $26,562,000 $24,570,000 8%
---------- -----------
Total $91,508,000 $80,479,000 14%
Teleflex is a diversified industrial company with annual sales of more than $1.4 billion. The company designs, manufactures and distributes quality engineered products and services for the automotive, marine, industrial, medical and aerospace markets worldwide. The company has produced 24 consecutive years of increased revenues and earnings based on its balanced and diversified portfolio of businesses. 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.