Teleflex 3Q net income falls on LMA deal costs
LIMERICK, Pa. (AP) — Medical equipment maker Teleflex Inc. said Wednesday its net income fell 50 percent in the third quarter on costs related to an acquisition and a loss from its orthopedics business.
Teleflex bought LMA, a company that makes masks that are used to deliver anesthesia or oxygen during surgery, and some of its brands for $312 million. During the quarter Teleflex also sold its orthopedics equipment business for about $45 million, and it took a loss from that business during the quarter.
The company said its third-quarter net income sank to $21.7 million, or 52 cents per share, from $43.7 million, or $1.07 per share. Excluding one-time items Teleflex said it earned $1.04 per share in the latest quarter. Its revenue grew 1.5 percent to $368.1 million from $362.7 million as volumes increased and the company raised prices.
Analysts were expecting net income of 96 cents per share and $370.2 million in revenue, according to FactSet.
Teleflex said revenue from its critical care business was flat at $244.1 million, surgical care revenue rose 5 percent to $69.6 million and equipment revenue rose 11 percent to $36.9 million. Cardiac care revenue fell 5 percent to $17.2 million.
The company reported better sales in the Americas and Asia but said revenue in Europe, the Middle East and Africa fell 9 percent due to the stronger dollar. Overseas revenue takes a hit when it's translated back into a stronger dollar.
The Limerick, Pa., company narrowed its annual earnings guidance and now expects adjusted net income of $4.35 to $4.40 per share for the year, from its previous estimate of $4.25 to $4.45 per share. Analysts expected net income of $4.36 per share on average.