Teledyne Technologies Issues Product Recall Notice
LOS ANGELES - May 24, 2000 - Teledyne Technologies Incorporated (NYSE: TDY) announced today that its Teledyne Continental Motors (TCM) business unit is inspecting up to 3,000 engines, versus the original estimate of 1,100 engines, for possible metallurgical flaws in some of the engines' crankshafts. TCM believes that metallurgical issues resulted from several discrete periods of steel production and/or forming operations by its suppliers. The Company will take a pre-tax charge of $12 million during the second quarter to cover estimated costs associated with the inspection and replacement of affected crankshafts. In addition, the Company is reviewing its options with regard to cost recoverability and has commenced legal action against certain suppliers.
"Safety is our primary concern," said Robert Mehrabian, president and chief executive officer. "We have devoted, and will continue to devote, necessary resources to maintain the aviation community's confidence in our products."
Identification of affected crankshafts will be accomplished by a metallurgical inspection of two small core samples removed from the crankshaft. TCM will conduct the inspection with the assistance of local fixed base operators (FBO's). To ensure that affected crankshafts are identified, TCM plans to inspect up to 3,000 engines that were manufactured between April 1998 and March 2000. The Company is issuing a revision to its Federal Aviation Administration approved Mandatory Service Bulletin (MSB 00-5), regarding the inspection and replacement of crankshafts.
Mehrabian continued, "We have established a toll-free service and a web-based inquiry management center (www.tcmlink.com) so that customers can easily learn if their engine is affected and what steps need to be taken to comply with this service bulletin."
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, relating to the crankshaft issue. Actual results could differ materially from these forward-looking statements, as inspections and legal actions proceed. 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 its Annual Report on Form 10-K.
Teledyne Continental Motors is a leading supplier of power plants for manned and unmanned aircraft, including piston engines and parts for general aviation aircraft. Teledyne Continental Motors is part of Teledyne Technologies Incorporated of Los Angeles, California.