Teleflex Inc. today reported a 14 percent decrease in revenue for the second quarter ended June 28, 2009, including a 25 percent decrease in commercial segment revenue, which includes marine.
Revenues from continuing operations were $483.1 million, compared to $559.7 million in the second quarter of 2008. The decline resulted from a decrease in core revenue of 8 percent, an unfavorable currency impact of 5 percent, and a loss of revenues of 1 percent resulting from the sale of its marine gauge business, the company said.
Income from continuing operations, excluding special charges, increased 18 percent to $38.5 million, or 96 cents per diluted share, compared to $32.7 million, or 82 cents per diluted share, in the prior year quarter.
In the commercial segment, revenues in the second quarter were $82.2 million, down from $109.6 million in the same period last year, 18 percent of which is due to a decline in core revenue.
The core revenue decline was principally a result of a decrease in sales of marine products to OEM manufacturers for the recreational boat market and lower volumes of alternate fuel systems and rigging services.
During the second quarter of 2009 operating profit in the commercial segment declined to $3.2 million from $9.5 million in the prior year period, principally due to the lower sales volumes, higher warranty costs in the power systems business, and the sale of higher cost inventory in the rigging services business.
"Teleflex continues to demonstrate the ability to consistently generate double-digit adjusted earnings growth despite operating in very difficult economic times," said Jeffrey P. Black, chairman and CEO, in a statement. "We continue to make progress within our medical segment, as our adjusted operating margins in that segment approached 22 percent.
"Despite the top-line revenue challenges we experienced in the first six months of 2009, we are raising our 2009 annual guidance for earnings per share, excluding special charges, to $3.40 to $3.60 per diluted share," he added.