Teleflex Incorporated (Teleflex), a US-based medical devices company, has reported net revenues of $469.5 million for the first quarter of 2009, compared with the net revenues of $542.1 million in the year-ago quarter. It also reported a net income attributable to common shareholders of $215.5 million, or $5.40 per diluted share, for the first quarter of 2009, compared with the net income attributable to common shareholders of $22.9 million, or $0.58 per diluted share, in the year-ago quarter.
Business Guidance for 2009
Looking ahead, the company reaffirms its full year 2009 guidance for earnings per share from continuing operations of $3.25 to $3.55 per diluted share, excluding special charges. Special charges for 2009 are projected to be in the range of $0.30 to $0.40 per diluted share. Earnings per share attributable to common shareholders including special charges, are projected to be in the range of $2.85 to $3.25 per diluted share.
Further, the company also reaffirms full year 2009 guidance of cash flow from continuing operations of $210 million to $220 million.
Income from continuing operations excluding special charges increased 17% to $30.2 million or $0.76 per diluted share for the first quarter of 2009, compared with $25.7 million or $0.65 per diluted share in the year-ago quarter. Income from continuing operations attributable to common shareholders including special charges increased to $26.4 million or $0.66 per diluted share for the first quarter of 2009, compared to $15.0 million or $0.38 per diluted share in the year-ago quarter.
Income from discontinued operations attributable to common shareholders was $189.1 million or $4.74 per diluted share for the first quarter of 2009, compared to $7.9 million or $0.20 per diluted share in the prior year quarter. 2009 results from discontinued operations include a gain net of tax, of $178.6 million, or $4.48 per diluted share from the sale of the 51% ownership in Airfoil Technologies International – Singapore Pte. Ltd. (“ATI”).
Cash flow from continuing operations first quarter of 2009 used net cash of $4.5 million. Excluding a tax payment of $47.4 million related to the divestiture of the automotive and industrial businesses, cash flow from continuing operations for the first quarter of 2008 was $27.2 million.
“Teleflex was able to generate 17% adjusted earnings growth despite operating in what are unprecedented economic times,” said Jeffrey P. Black, chairman and chief executive officer. “In addition, as a result of the divestiture of ATI during the quarter, we were able to further reduce our debt by approximately $240 million, improving our balance sheet to provide additional flexibility to support future growth and eliminating the requirement of further debt payments until September 2010.”
Black stated, “We continue to expect to deliver low to mid-single digit core revenue growth within our Medical business for the full year notwithstanding the challenges experienced in certain product categories during the first quarter which negatively impacted growth. Due to the increasing uncertainty in the end markets served by our Aerospace and Commercial Segments, we expect continued revenue challenges and will remain vigilant with our cost containment initiatives in these businesses.”
Added Black, “Despite the softness in revenue during the quarter and considering the action plans initiated to improve working capital, we are reaffirming our 2009 annual guidance for earnings per share of $3.25 to $3.55 per diluted share excluding special charges and cash flow from continuing operations of $210 to $220 million.”
Business Segment Commentary
Medical Segment revenues of $340.5 million for the first quarter represented a decrease of 9% versus the previous year with a core decline of 4% and negative impact from currency of 5%. The decrease in core revenue was primarily due to reduced sales of respiratory products in North America as a result of a less severe flu season, distributor inventory reductions, lower sales of cardiac care products driven by a product recall, and a decline in orthopedic devices sold to medical OEM’s. These declines were partially offset by higher sales of urology and surgical products.