Company Reaffirms Full Year 2008 Outlook
LIMERICK, Pa.--(BUSINESS WIRE)--Dec. 17, 2008--Teleflex Incorporated (NYSE:TFX) announced the initiation of a program
to consolidate operations in its Commercial Segment to address an
expectation of continued weakness in the marine and industrial markets.
The company expects these actions will result in restructuring and
restructuring related charges in the range of $10 million to $12 million
before income taxes by the end of 2009, of which about 50% will be
non-cash. This includes a charge of approximately $2 million planned for
the fourth quarter of 2008.
In connection with this restructuring program, which is expected to be
completed by the end of 2009, the company will consolidate manufacturing
and distribution, eliminate approximately 150 net positions and exit
certain product lines in the Commercial Segment with 2008 revenues of
approximately $15 million. These actions are expected to generate
annualized pre-tax savings of $4 million to $5 million beginning in 2010.
Jeffrey P. Black, Chairman and Chief Executive Officer, stated "Overall,
Teleflex has performed well and remains on track to achieve the top end
of our previously-stated guidance for full year 2008 earnings per share,
excluding special charges. At the same time, it is important that we
continue to adjust our businesses to reflect the expected impact of
economic conditions on our customers and markets. These investments are
necessary to better position the Commercial Segment to serve our
customers in the years ahead."
The company has provided full year 2008 guidance from continuing
operations of $3.90 to $4.00 per diluted share, excluding special
charges. Special charges for 2008 are now expected to be in the range of
$0.53 to $0.56 per diluted share. Earnings per share, including special
charges, is expected to be in the range of $3.34 to $3.47 per diluted
share.
About Teleflex Incorporated
Teleflex is a diversified company that designs, manufactures and
distributes quality engineered products and services for the medical,
aerospace and commercial markets worldwide. The company employs
approximately 14,000 people worldwide who focus on providing innovative
solutions for customers. Additional information about Teleflex can be
obtained from the company's website at www.teleflex.com.
Caution Concerning Forward-looking Information
This press release contains forward-looking statements, including, but
not limited to, statements relating to expected restructuring charges
planned for the fourth quarter of 2008 and the full year 2009, savings
to be generated by these actions, our forecast of diluted earnings per
share from continuing operations excluding special charges; expected
range of special charges for 2008; and our forecast of diluted earnings
per share including special charges. Actual results could differ
materially from those in these forward-looking statements due to, among
other things, unanticipated expenditures in connection with the
initiatives; costs and length of time required to comply with legal
requirements applicable to certain initiatives; unanticipated
difficulties in connection with consolidation of manufacturing and
administrative functions; conditions in the end markets we serve, our
ability to achieve sales growth, price increases or cost reductions; our
ability to realize efficiencies; changes in material costs and
surcharges; unanticipated difficulties, expenditures and delays in
connection with the integration of Arrow International or our resolution
of issues related to the FDA corporate warning letter issued to Arrow;
our ability to meet our debt obligations; changes in general and
international economic conditions and other factors described in
Teleflex's filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K.
CONTACT: Teleflex Incorporated
Jake Elguicze
Senior Director, Investor Relations
610-948-2836
Source: Teleflex Incorporated