THOUSAND OAKS, Calif. - October 21, 2020 - Teledyne Technologies Incorporated (NYSE:TDY)
- Sales of $749.0 million and GAAP diluted earnings per share of $2.48
- GAAP operating margin of 16.4%, an increase of 31 bps from last year and 158 bps from the prior quarter
- Record third quarter free cash flow of $135.1 million and all-time record free cash flow of $330.5 million nine months year to date
- Raising midpoint and narrowing full year 2020 GAAP diluted earnings per share outlook to $9.70 to $10.00, compared with the prior outlook of $9.45 to $10.00
Teledyne today reported third quarter 2020 net sales of $749.0 million, compared with net sales of $802.2 million for the third quarter of 2019, a decrease of 6.6%. Net income was $93.9 million ($2.48 diluted earnings per share) for the third quarter of 2020, compared with $106.7 million ($2.84 diluted earnings per share) for the third quarter of 2019, a decrease of 12.0%. The third quarter of 2020 included $3.9 million in severance, facility consolidation, acquisition and other costs compared with $2.0 million in severance, facility consolidation, acquisition and other costs for the third quarter of 2019. The third quarter of 2020 reflected net discrete income tax benefits of $1.2 million compared with net discrete income tax benefits of $10.4 million for the third quarter of 2019.
"For the second consecutive quarter, GAAP operating margin increased sequentially over 150 basis points," said Robert Mehrabian, Executive Chairman. "In fact, we achieved greater margins compared to last year in nearly every major business category except commercial aerospace. During the third quarter, our shortest-cycle environmental and test and measurement instrumentation businesses experienced a rebound from the trough in the second quarter. With non-COVID healthcare procedures now increasing, we expect a similar recovery for our medical imaging businesses late in the fourth quarter. Finally, our balance sheet has never been stronger and our acquisition pipeline is healthy. Nevertheless, we will continue to be disciplined in capital deployment."
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