Cover Story

Teleflex expects product lines to continue to grow

INSIGHT

PLYMOUTH MEETING, Pa, USA

July 17, 2002--Teleflex
Incorporated (NYSE:TFX) today reported that revenues increased 9% to
$546.3 million in the second quarter ended June 30, 2002 from $503.0
million for the same period last year. Net income in the quarter was
$33.5 million and diluted earnings per share were 84 cents.
           Revenues in the first six months of 2002 increased 8% to $1,054.7
million compared to $973.7 million last year. Net income was $64.0
million in the first six months compared with $61.0 million for the
same period a year ago. Diluted earnings per share increased to $1.61
from $1.56 per share for the same period in 2001.
           Jeffrey P. Black, president and chief executive officer, said,
"Our Commercial and Medical segments both reported higher sales in the
second quarter, which more than offset weak demand for Aerospace
products, a reflection of softness in the commercial aerospace
industry. Our strategy of balance and diversification once again
enabled Teleflex to grow because of the differing business cycles in
the markets we serve." In the second quarter, core businesses
contributed approximately one-third of the growth in sales and
acquisitions contributed approximately two-thirds.
           Mr. Black said that while demand for aerospace products is likely
to remain soft in the second half of the year, he expects the medical,
automotive, marine and industrial product lines to continue to grow.
"Based on current economic conditions, we remain comfortable with our
previously-stated guidance of $3.20 to $3.30 for full year 2002," said
Mr. Black.
           The Commercial Segment increased sales 18% in the second quarter
with gains in all three product lines. The Segment contributed 53% of
total corporate revenues. Sales of adjustable pedal systems expanded
to additional automotive platforms. Strong core growth in light duty
cables and marine products was supplemented by acquisitions. Operating
profit increased but pricing pressures and severance connected with
the curtailment of a plant affected Segment margins adversely.
           Medical Segment sales increased 6% in the quarter and accounted
for 21% of total revenues. Both the surgical devices and the hospital
supply product lines reported solid growth. A majority of the growth
was from core operations, including the success of a new program that
ensures quick delivery of the most frequently-ordered surgical
products. Acquisitions added modestly to sales and operating margins
remained relatively the same compared to a year ago.
           Aerospace Segment sales declined 5% from the second quarter of
2001. Revenues declined in all four product lines, reflecting
continuing weakness in the commercial aerospace industry. The
Aerospace Segment accounted for 26% of corporate revenues. Operating
profit declined as a result of lower volume as well as expenses
related to the development and launch of new cargo products.
           In accordance with the adoption of SFAS 142, Teleflex stopped
amortizing goodwill as of December 31, 2001. Excluding goodwill
amortization in the second quarter of 2001, net income remained even
with the second quarter of last year and diluted earnings per share
declined 1%. To facilitate comparisons of segment operating results,
prior year goodwill amortization in the accompanying financial summary
has been reclassified as a corporate rather than a segment expense.
Goodwill amortization expense in the second quarter of 2001 was $3.2
million pre-tax, or 6 cents per share after tax. The pre-tax impact on
second quarter 2001 operating earnings by segment is as follows:
Aerospace $346,000; Medical $2,142,000; Commercial $740,000.

SEE Full Financial details at their website Click Here

Teleflex At A Glance: Teleflex is a diversified industrial company with annual revenues of approximately $2 billion. The company designs, manufactures and distributes quality engineered products and services for the aerospace, medical, automotive, marine and industrial markets worldwide. Teleflex employs more than 17,000 people worldwide who focus on providing innovative solutions for customers. Additional information about Teleflex, including a recent archived conference call with analysts and investors, can be obtained from the company's Web site

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Source: Teleflex

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