Comments on Earnings Outlook
LOS ANGELES - August 3, 2000 - Teledyne Technologies Incorporated (NYSE:TDY) announced today that it currently estimates 2001 segment operating profit from continuing operations should be 10% to 12% lower than total reported 1999 segment operating profit. This estimate is due to the cumulative effect of the following factors.
The Company had previously announced plans for additional capital expenditures and product development expenses totaling approximately $20 million in the latter half of 2000, which would impact profitability in the third and fourth quarters. Teledyne Technologies currently expects additional similar expenditures at approximately the same annual rate in 2001 to continue funding its strategic initiatives, which are principally focused on broadband communications, including fiber optic, wireless and satellite communication applications.
Additionally, several previously disclosed developments at the Company's Aerospace Engines and Components segment, including the expected sale of Teledyne Cast Parts and softness in the small turbine engine business due to a decrease in military spare parts sales, reduced foreign demand for HARPOON missiles and the delay of the Joint Air-to-Surface Standoff Missile (JASSM) production start until 2002, will negatively impact 2001 results.
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.
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, relating to operating profit, sales, capital expenditures, expenses, and strategic plans. Actual results could differ materially from these forward-looking statements. Many factors, including customers' acceptance of Teledyne Technologies' products, funding and continuation of government programs and economic conditions, could change anticipated results. Any disposition of Teledyne Cast Parts will depend on many factors, including the terms and conditions of any definitive asset sale and purchase agreement, as well as industry and business conditions. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Teledyne Technologies' periodic filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and the Company's Registration Statement relating to its anticipated public offering.