Teleflex Inc. reported a 17 percent increase in adjusted earnings for the first quarter, which ended March 29, despite a 13 percent decline in revenues.
Revenues from continuing operations were $469.7 million compared to $542.1 million in the year-ago quarter, driven by an 8 percent decline in core revenue and an unfavorable currency impact of 5 percent.
Income from continuing operations, excluding special charges, increased 17 percent to $30.2 million or 76 cents per diluted share, compared to $25.7 million or 65 cents per diluted share in the prior-year quarter. Including special charges, income increased to $26.4 million or 66 cents per diluted share, compared to $15 million or 38 cents per diluted share in the prior year.
Income from discontinued operations was $189.1 million or $4.74 per diluted share, compared to $7.9 million or 20 cents per diluted share in the 2008 quarter. The 2009 results include $178.6 million from the sale of the 51 percent ownership in Airfoil Technologies International Singapore Pte. Ltd.
Net income in the 2009 first quarter was $215.5 million, or $5.40 diluted earnings per share, compared to $22.9 million, or 58 cents per diluted share last.
"Teleflex was able to generate 17 percent adjusted earnings growth despite operating in what are unprecedented economic times," said Jeffrey P. Black, chairman and CEO, in a statement. "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."
Commercial segment revenues declined 16 percent to $85.4 million. Core growth in sales of power systems and rigging services products of 35 percent and 1 percent, respectively, was more than offset by a 34 percent decline in sales of marine products.
During the first quarter of 2009, operating profit in the commercial segment increased to $4.7 million from $2.8 million, with increases in the power systems business offsetting further declines in marine. Segment operating margin rose to 5.5 percent from 2.8 percent in the prior year quarter.
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. Including special charges, earnings are expected to be in the range of $2.85 to $3.25 per diluted share.