Teledyne Technologies Reports Third Quarter Results

Teledyne Technologies Incorporated (NYSE:TDY):
  • Third quarter sales from continuing operations of $526.8 million
  • Record third quarter GAAP earnings per diluted share from continuing operations of $1.49
  • Record third quarter cash from operations of $98.9 million
  • Record GAAP operating margin
  • Raising full year 2016 GAAP earnings outlook from continuing operations to $5.26 to $5.31, an increase from the prior outlook of $5.10 to $5.20

Teledyne today reported third quarter 2016 sales from continuing operations of $526.8 million, compared with sales from continuing operations of $551.7 million for the third quarter of 2015, a decrease of 4.5%. Net income from continuing operations was $53.1 million ($1.49 per diluted share) for the third quarter of 2016, compared with $49.8 million ($1.38 per diluted share) for the third quarter of 2015, an increase of 6.6%. The third quarter of 2016 included pretax severance, facility consolidation and assets impairment charges of $1.8 million offset by net discrete tax benefits of $6.6 million. The third quarter of 2015 included pretax severance charges of $3.1 million offset by net discrete tax benefits of $7.4 million. Net income attributable to Teledyne was $52.0 million ($1.46 per diluted share) for the third quarter of 2016, compared with $48.3 million ($1.34 per diluted share) for the third quarter of 2015, an increase of 7.7%.

"In the third quarter, we continued to achieve organic growth in our commercial imaging and aerospace businesses. Sales of electronic test and measurement instrumentation also increased nicely," said Robert Mehrabian, Chairman, President and Chief Executive Officer. "I am very pleased with our execution across Teledyne, especially given the generally weaker capital spending environment. Our earnings and cash from operations were at record levels for any third quarter. Furthermore, Teledyne's GAAP operating margin was an all-time record. Despite continued weakness in energy markets and while we remain cautious, we also believe that our marine instrumentation businesses, collectively, have bottomed. Finally, given our resilient business portfolio and strong balance sheet, we are committed to ongoing investment in research and development, as well as disciplined acquisitions."

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