THOUSAND OAKS, Calif. - July 22, 2020 - Teledyne Technologies Incorporated (NYSE:TDY)
- Sales of $743.3 million and GAAP diluted earnings per share of $2.48
- GAAP operating margin of 14.8%, including $8.6 million of pretax charges
- Record second quarter cash from operations of $155.8 million
- Affirming and narrowing full year 2020 GAAP diluted earnings per share outlook to $9.45 to $10.00, compared with the prior outlook of $9.30 to $10.00
Teledyne today reported second quarter 2020 net sales of $743.3 million, compared with net sales of $782.0 million for the second quarter of 2019, a decrease of 4.9%. Net income was $93.7 million ($2.48 diluted earnings per share) for the second quarter of 2020, compared with $104.6 million ($2.80 diluted earnings per share) for the second quarter of 2019, a decrease of 10.4%. The second quarter of 2020 included $8.6 million in severance, facility consolidation and acquisition costs compared with $1.3 million in severance, facility consolidation and acquisition costs for the second quarter of 2019. The second quarter of 2020 reflected net discrete income tax benefits of $10.4 million compared with net discrete income tax benefits of $4.3 million for the second quarter of 2019.
"Despite record economic contraction and a challenging operating environment for manufacturers, Teledyne performed extremely well in the second quarter. Our decrease in sales was limited to approximately 5% compared with both last year and the first quarter of 2020. However, overall GAAP operating margin increased sequentially 150 basis points even with $8.6 million of pretax charges," said Robert Mehrabian, Executive Chairman. "We have aggressively cut costs to protect profitability in our shorter-cycle business, while at the same time continuing margin improvement actions in our operations with strong backlog. Furthermore, we achieved record cash flow for any second quarter period. Much uncertainty remains in 2020, and we do not know the pace of recovery in all of our industrial businesses. Nevertheless, given our strong execution and lower cost structure, as well as our very healthy balance sheet, we are well-positioned to continue compounding earnings and cash flow for quarters and years to come."
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