Teleflex Inc. (TFX), an engineered products and service provider for the medical, aerospace and commercial markets Tuesday said its net income attributable to common shareholders for the first quarter increased from the same quarter a year ago, helped by a decline in expenses. First-quarter revenues, however, declined from the same quarter last year.
The Limerick, Pennsylvania-based company's first-quarter net income attributable to common shareholders increased to $215.5 million or $5.40 per share from $22.9 million or $0.58 per share in the corresponding quarter a year ago.
On average, six analysts polled by Thomson Reuters expected first-quarter earnings of $0.63 per share. Analysts estimate typically exclude special items such as one-time charges or gains.
The increase in net income for the first quarter was primarily due to a decline in restructuring and impairment charges as well as a decrease in selling, general and administrative expenses.
Restructuring and other impairment charges for the first quarter declined to $2.463 million from $8.856 million in the same quarter a year ago, while selling, general and administrative expenses for the first quarter declined to $128.764 million from $147.573 million in the same quarter last year.
For the first quarter, income from continuing operations attributable to common shareholders including special charges increased to $26.4 million or $0.66 per share from $15.0 million or $0.38 per share in the year-ago quarter.
Income from continuing operations excluding special charges also rose 17% to $30.2 million or $0.76 per share from $25.7 million or $0.65 per share in the same quarter a year ago.
First-quarter income from discontinued operations attributable to common shareholders climbed to $189.1 million or $4.74 per share from $7.9 million or $0.20 per share in the corresponding quarter a year ago.
The company said results from discontinued operations included a gain net of tax, of $178.6 million, or $4.48 per diluted share resulting from the sale of the 51% ownership in Airfoil Technologies International - Singapore.
First-quarter net revenues, however, declined 13% to $469.68 million from $542.11 million in the first quarter of last year. First-quarter revenues were below the analysts' revenue estimate of $533.91 million.
The decline in first quarter revenues was attributable to an 8% decrease in core revenue as well as an unfavorable currency impact of 5%. On a segmental basis, medical segment core revenues declined 4% from the same quarter a year ago, while aerospace and commercial segment core revenues declined 27% and 13% respectively.
First quarter revenues from the medical segment declined to $340.5 million from $374.1 million in the same quarter last year, while aerospace segment revenues for the first quarter were down 34% to $43.7 million from $66.3 million in the same period last year. The decline in aerospace segment revenues was primarily due to a slump in sales of cargo loading systems and cargo containers.
Commercial Segment revenues for the first quarter declined 16% to $85.4 million from $101.8 million in the year-ago quarter. The company said 35% core growth in sales of power systems and a 1% core growth in sales of rigging services products was more than offset by a 34% decline in sales of marine products. Unfavorable currency translation contributed 3% to the decline.
Looking forward to full year 2009, the company now expects earnings per share attributable to common shareholders including special charges, to be in the range of $2.85 to $3.25, while the Street expects full-year earnings of $0.63 per share.
The company reiterated its 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 expected to be in the range of $0.30 to $0.40 per diluted share.
TFX is currently trading at $43.00, up $3.46 or 8.75% on a volume of 698k shares on the NYSE.
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