Teledyne sees another record year but warns of downturn
Despite record sales in 2022 and 2021, Teledyne Technologies is warning of a downturn in 2023.
The conglomerate of 78 companies includes e2v in Europe as well as oscilloscope maker LeCroy , DALSA and FLIR. It saw $5,458.6 million turnover for 2022, up 18.3% on 2021. The Q4 sales were $1.418bn, up 3.1%.
The company completed the acquisition of ETM-Electromatic in Newark, California during the year. ETM has expertise in design, build and test of high-voltage, high-power microwave and high-energy X-ray products for medical, security, communications, radar/EW, and test/measurement markets.
- Boom year for Teledyne Technologies in 2021
- Teledyne buys FLIR in $8bn deal
- First quantum atomic clock on manoeuvres
It has also acquired Cyprus-based ChartWorld International on January 3rd. The developer of maritime navigation chart display hardware and software has additional sites in Hamburg, Singapore, Vancouver and Tokyo.
Full year profit was $788.6 million for 2022, compared with $445.3 million for fiscal year 2021, an increase of 77.1%.
However the outlook is weak. Based on its current outlook, the management believes that first quarter 2023 GAAP diluted earnings per share will be in the range of $3.57 to $3.69, down from $4.74. Full year 2023 GAAP diluted earnings per share will be in the range of $15.80 to $16.10, down from $16.53 in 2022.
This would be a full year turnover down by as much as 4.4% to $5.2bn.
“During 2022, Teledyne, as many other companies, found itself challenged by the external forces of inflation, a strong dollar and parts shortages. Nevertheless, we continued our long history of navigating these market environments, and we ultimately delivered earnings in excess of our own expectations,” said Robert Mehrabian, Chairman, President and Chief Executive Officer.
“Our acquisition pipeline remains healthy, as evidenced by the recent addition of ChartWorld, whose maritime navigation software and hardware tools bridge a product and technology gap between our Teledyne Marine and Raymarine businesses.”
- First space-qualified configurable quad ADC
- First high resolution 3D ToF sensor to work in all light conditions
- Turnkey MIPI CSI-2 optical modules for AI vision systems
Digital imaging
The Digital Imaging segment’s fourth quarter 2022 net sales were $806.7 million, compared with $809.5 million, a decrease of 0.3%. Operating income was $152.0 million for the fourth quarter of 2022, compared with $94.1 million, an increase of 61.5%.
The decrease came from lower sales of surveillance and unmanned ground systems for defense applications, partially offset by greater sales of industrial and scientific cameras, X-ray products, and commercial infrared imaging solutions.
Instrumentation
The Instrumentation segment’s fourth quarter 2022 net sales were $326.2 million, compared with $302.2 million, an increase of 7.9%. Operating income was $79.0 million for the fourth quarter of 2022, compared with $66.7 million, an increase of 18.4%.
Sales of marine instrumentation increased $11.0 million, sales of environmental instrumentation increased $10.0 million, and sales of test and measurement instrumentation increased $3.0 million, respectively.
Aerospace and Defense Electronics
The Aerospace and Defense Electronics segment’s fourth quarter 2022 net sales were $177.9 million, compared with $163.3 million, an increase of 8.9%. Operating income was $52.8 million for the fourth quarter of 2022, compared with $40.6 million, an increase of 30.0%.
The fourth quarter of 2022 net sales reflected higher sales of $11.9 million for defense electronics and $2.7 million for aerospace electronics. Operating income in the fourth quarter of 2022 reflected the impact of higher sales and improved margins across most defense electronics product categories.
Engineered Systems
The Engineered Systems segment’s fourth quarter 2022 net sales were $107.4 million, compared with $100.7 million, an increase of 6.7%. Operating income was $9.3 million for the fourth quarter of 2022, compared with $11.2 million, a decrease of 17.0%. The fourth quarter 2022 net sales reflected higher sales of $4.7 million for energy systems and $2.0 million for engineered products. Operating income in the fourth quarter of 2022 primarily reflected the impact of lower margins for electronic manufacturing services products.
Capital expenditure for the fourth quarter of 2022 was static at $34.1m but was down to $92.6m from $101.6m for the full year. The company has net debt of $3.2bn, down $400m on 2022.
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