EX-99.1 2 exhibit1.htm EX-99.1 EX-99.1

Exhibit 99.1

     
Teleflex ®
  NEWS
155 South Limerick Road, Limerick, PA 19468 USA — Phone: 610-948-5100 — Fax: 610-948-5101
     
Contact:  
Jake Elguicze
Senior Director,
Investor Relations
610-948-2836
     
FOR IMMEDIATE RELEASE
  March 23, 2009

Teleflex Completes Sale of Airfoil Technologies International Singapore Pte. Ltd. to General
Electric Company

Limerick, PA – Teleflex Incorporated (“Teleflex”) has completed the previously announced sale of its 51 percent share of Airfoil Technologies International — Singapore Pte. Ltd., a joint venture between General Electric Company (“GE”) and Teleflex, to GE.

The divested business was part of the Teleflex Aerospace Segment and had annual revenues of approximately $250 million comprised of both repair and replacement component revenues. The cash transaction was valued at $300 million and is expected to result in an after tax gain on sale of approximately $195 million or $4.89 per diluted share. Approximately $190 million of after tax proceeds are expected to be used to repay currently outstanding borrowings.

As a result of ATI being reclassified to discontinued operations and the current outlook for the continuing businesses, the Company anticipates diluted earnings per share from continuing operations for the full year 2009 before special charges to be in the range of $3.25 to $3.55 per diluted share. Special charges for the year are expected to be in the range of $0.30 to $0.40 per diluted share. The previously provided guidance for cash flow from continuing operations is expected to be reduced by approximately $70 million to a range of $210 million to $220 million as a result of the ATI sale. The estimated impact of the divestiture on 2009 free cash flow 1 is a reduction of approximately $30 million including the elimination of minority interest dividends to GE.

“In light of the economy we expect challenges to the initial revenue growth targets that we set for the year, however we are implementing cost containment measures expected to offset the bottom line impact,” stated Jeffrey P. Black, chairman and chief executive officer.

Said Black, “The completion of this transaction allows us to further reduce our outstanding debt and provides additional financial flexibility to support future growth. We greatly appreciate the contributions that the ATI employees have made to Teleflex over the years and are pleased to transition the businesses to GE, a well respected industry leader.”

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“I am also pleased to announce that John Suddarth, President of the Aerospace segment since 2004, will also assume management responsibility of the Commercial segment, as its President,” commented Black.

Simpson Thacher & Bartlett LLP acted as legal advisor to Teleflex on this transaction.

1 Free cash flow is defined as Cash Flow from Continuing Operations less capital expenditures and dividends paid.

About Teleflex Incorporated
Teleflex (NYSE: TFX) is a diversified company that designs, manufactures and distributes quality engineered products and services for the medical, aerospace and commercial markets worldwide. Teleflex employs approximately 13,700 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.

About GE Aviation
GE Aviation, an operating unit of General Electric Company (NYSE: GE), is a world-leading provider of commercial and military jet engines and components as well as integrated digital, electric power, and mechanical systems for aircraft. GE Aviation also has a global service network to support these offerings. For more information, visit us at www.ge.com/aviation.

Additional Notes:

Filed with this press release are schedules which reconcile previously reported 2008 Segment Results of Operations to reflect Discontinued Operations, and Income from Continuing Operations and Diluted Earnings Per Share to reflect Discontinued Operations.

Forward-looking information:
This press release contains forward-looking statements, including, but not limited to, statements relating to the expected gain on sale, net of tax, for the ATI transaction; our expected use of the proceeds from the ATI transaction; 2009 forecast of diluted earnings per share from continuing operations before special charges; the expected range of special charges for 2009; the expected impact of the ATI transaction on the range of cash flow from continuing operations expected for 2009; the expected impact of the divestiture on free cash flow; and expected challenges to initial revenue growth targets for 2009.  Actual results could differ materially from those in the forward-looking statements due to, among other things, conditions in the end markets we serve, customer reaction to new products and programs, our ability to achieve sales growth, price increases or cost reductions; our ability to realize efficiencies; changes in material costs and surcharges; unanticipated difficulties in connection with consolidation of manufacturing and administrative functions; unanticipated difficulties, expenditures and delays in connection with the integration of Arrow International, including delays in the implementation of integration programs and adverse customer and shareholder reaction; unanticipated difficulties, expenditures and delays in complying with government regulations applicable to our businesses, including unanticipated costs and difficulties in connection with the 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 10K.

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TELEFLEX INCORPORATED AND SUBSIDIARIES
Full Year 2009 Adjusted Diluted Earnings Per Share Guidance
To Reflect Discontinued Operations

         
 
   Low   High
 
        
Previous 2009 earnings per share from continuing operations
before special charges guidance
 
$4.10 		 
$4.40
 
        
Less: impact of ATI divestiture, net of reduced interest
expense
 
($0.85) 		 
($0.85)
 
        
Revised 2009 earnings per share from continuing operations
before special charges guidance
 
$3.25 		 
$3.55
 
        

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TELEFLEX INCORPORATED AND SUBSIDIARIES
Adjusted Segment Results of Operations
To Reflect Discontinued Operations
(Unaudited)

                                                         
    2008 Quarters   2008 Year to Date
                                    6 MTHS   9 MTHS   12 MTHS
    3/30   6/29   9/28   12/31   6/29   9/28   12/31
            (Dollars and shares in thousands, except per share)        
Medical
   $ 374,057     $ 384,335     $ 367,327     $ 373,390     $ 758,392     $ 1,125,719     $ 1,499,109  
Aerospace
     66,288       65,733       62,105       59,692       132,021       194,126       253,818  
Commercial
     101,765       109,610       101,628       97,591       211,375       313,003       410,594  
 
                                                        
Net revenues
   $ 542,110     $ 559,678     $ 531,060     $ 530,673     $ 1,101,788     $ 1,632,848     $ 2,163,521  
 
                                                        
Medical
   $ 70,912     $ 70,652     $ 71,388     $ 73,378     $ 141,564     $ 212,952     $ 286,330  
Aerospace
     4,928       7,657       7,309       6,173       12,585       19,894       26,067  
Commercial
     2,847       9,460       7,067       8,083       12,307       19,374       27,457  
 
                                                        
Segment operating profit (1)
     78,687       87,769       85,764       87,634       166,456       252,220       339,854  
Corporate expenses
     13,008       11,157       11,228       10,527       24,165       35,393       45,920  
Restructuring and other impairment charges
     8,856       2,591       470       15,784       11,447       11,917       27,701  
Loss (gain) on sales of businesses and assets
     18       —       —       (314 )     18       18       (296 )
Minority interest in consolidated subsidiaries
     (187 )     (259 )     (196 )     (105 )     (446 )     (642 )     (747 )
 
                                                        
Income from continuing operations before interest, taxes and minority interest
     56,992       74,280       74,262       61,742       131,272       205,534       267,276  
Interest expense, net
     30,122       30,930       28,501       29,758       61,052       89,553       119,311  
 
                                                        
Income from continuing operations before taxes and minority interest
     26,870       43,350       45,761       31,984       70,220       115,981       147,965  
Taxes on income from continuing operations
     11,662       14,477       13,406       10,545       26,139       39,545       50,090  
 
                                                        
Income from continuing operations before minority interest
     15,208       28,873       32,355       21,439       44,081       76,436       97,875  
Minority interest in consolidated subsidiaries, net of tax
     187       259       196       105       446       642       747  
Income from continuing operations
     15,021       28,614       32,159       21,334       43,635       75,794       97,128  
Operating income from discontinued operations
     7,908       4,912       10,338       6,272       12,820       23,158       29,430  
Taxes (benefit) on income from discontinued operations
     (14 )     (1,417 )     178       8,037       (1,431 )     (1,253 )     6,784  
 
                                                        
Income (loss) from discontinued operations
     7,922       6,329       10,160       (1,765 )     14,251       24,411       22,646  
 
                                                        
Net income
   $ 22,943     $ 34,943     $ 42,319     $ 19,569     $ 57,886     $ 100,205     $ 119,774  
 
                                                        
Earnings per share:
                                                        
Basic:
                                                        
Income from continuing operations
   $ 0.38     $ 0.72     $ 0.81     $ 0.54     $ 1.10     $ 1.92     $ 2.45  
Income (loss) from discontinued operations
   $ 0.20     $ 0.16     $ 0.26     $ (0.04 )   $ 0.36     $ 0.62     $ 0.57  
 
                                                        
Net income
   $ 0.58     $ 0.88     $ 1.07     $ 0.49     $ 1.47     $ 2.53     $ 3.03  
 
                                                        
Diluted:
                                                        
Income from continuing operations
   $ 0.38     $ 0.72     $ 0.80     $ 0.54     $ 1.10     $ 1.90     $ 2.44  
Income (loss) from discontinued operations
   $ 0.20     $ 0.16     $ 0.25     $ (0.04 )   $ 0.36     $ 0.61     $ 0.57  
 
                                                        
Net income
   $ 0.58     $ 0.88     $ 1.06     $ 0.49     $ 1.46     $ 2.52     $ 3.01  
 
                                                        
Average number of common and common equivalent shares outstanding:
                                                        
Basic
     39,454       39,562       39,645       39,677       39,508       39,553       39,584  
Diluted
     39,709       39,831       39,970       39,819       39,770       39,837       39,832  

  (1)   Segment operating profit includes a segment’s net revenues reduced by its materials, labor and other product costs along with the segment’s selling, engineering and administrative expenses and minority interest. Unallocated corporate expenses, gain on sales of businesses and assets, restructuring and other impairment charges, interest income and expense and taxes on income are excluded from the measure.

These discontinued operations have not historically been separately identified, consolidated and audited as presented in this schedule.

Certain financial information is presented on a rounded basis, which may cause minor differences.

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TELEFLEX INCORPORATED AND SUBSIDIARIES
Adjusted Income from Continuing Operations and Diluted Earnings Per Share
To Reflect Discontinued Operations
(Unaudited)

                                                                                                                 
    2008 Quarters   Full Year 2008
    March 30           June 29   September 28   December 31   December 31
                    EPS                           EPS           EPS           EPS           EPS
                                            (Dollars in thousands, except per share)                                  
Income from continuing operations and diluted earnings per share
           $ 15,021             $ 0.38                     $ 28,614     $ 0.72     $ 32,159     $ 0.80     $ 21,334     $ 0.54     $ 97,128     $ 2.44  
Restructuring and other impairment charges, net of tax
             6,034               0.15                       1,747       0.04       318       0.01       9,969       0.25       18,068       0.45  
Losses and other charges, net of tax(A)
             219               0.01                       2,357       0.06       1,620       0.04       488       0.01       4,684       0.12  
Fair market value inventory adjustment, net of tax (B)
             4,449               0.11                       —       —       —       —       —       —       4,449       0.11  
Income from continuing operations and diluted earnings per share excluding restructuring and other impairment charges, losses and other charges and fair market value inventory adjustment
           $ 25,723             $ 0.65                     $ 32,718     $ 0.82     $ 34,097     $ 0.85     $ 31,791     $ 0.80     $ 124,329     $ 3.12  
 
                                                                                                                
(A) Losses and other charges principally relate to restructuring related costs associated with the Arrow acquisition.
                                                                        
(B) The fair market value inventory adjustment reflects the absorption of the residual Arrow inventory purchase price adjustment from the acquisition date.
                                                
Earnings per share information is presented on a rounded basis, which may cause minor differences
                                                                                

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