Teledyne Technologies Expands Plans to Reduce Cost Structure
LOS ANGELES - July 10, 2001 - Teledyne Technologies Incorporated (NYSE:TDY) today announced its progress toward reducing its overall cost structure as a result of additional workforce reductions from investments in lean manufacturing and factory automation, the divestiture of under-performing or non-core product lines and the consolidation of manufacturing operations.
The Company previously announced that second-quarter earnings would include a pre-tax charge of approximately $5 million to $10 million. Teledyne now anticipates recording a pre-tax charge totaling approximately $25 million to $27 million ($0.46-$0.50 per diluted share).
By year-end 2001, the Company now expects to reduce overall headcount by 14%. In the second quarter, the Company eliminated another 207 jobs, bringing the total workforce reduction through the second-quarter to 507 positions, or about 9% of Teledyne's total workforce. The expanded pre-tax charge will reflect these additional workforce reductions.
The second-quarter charge will also include transaction costs and loss on sale associated with the divestiture of two non-core product lines within the Company's System Engineering Solutions segment. During the next 12 months, the Company also plans to exit the following product lines in its Electronics and Communications segment: lighting and display products; industrial solid-state relays; and certain microwave switches and filters. The second-quarter charge will include related product line termination costs. Additionally, the charge will reflect costs associated with the Company's efforts to consolidate a portion of its manufacturing operations in the United Kingdom, Mexico and the United States, and asset impairment charges, primarily related to goodwill and inventory write downs, in selected product lines.
"The transformation of Teledyne over the past 18 months reflects our determination to ensure we continually improve stockholder value," said Robert Mehrabian, chairman, president and chief executive officer of Teledyne Technologies. "Our second-quarter actions are aimed at attaining strong sustained operating performance central to Teledyne's long-term growth."
Teledyne Technologies is a leading provider of sophisticated electronics and communications products, systems engineering solutions, and aerospace products and components, with operations in the United States, the United Kingdom and Mexico. More information about Teledyne Technologies can be found on the Company's website at www.teledyne.com.