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Teledyne Technologies Annual Report, Year Ended Dec 29, 2002

Filing Date
Filed March 5, 2003
Period End
December 29, 2002
Security
TDY
In the record · 2016–202610-K1210-Q338-K120

TDY filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 120 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jun ’17Jun ’17
  2. Material agreement8-K · Nov ’19Nov ’19
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 10-K filed March 5, 2003. Cited figures are marked; the original filing is the authoritative source.

Teledyne Technologies Incorporated (TDY) reported 2002 sales of $772.7 milliona, up from $744.3 million in 2001 and below $795.1 million in 2000.

Income from continuing operations was $25.4 millionb ($0.77 per diluted share), compared with $6.8 million ($0.21 per diluted share) in 2001. Aggregate segment operating profit rose to $57.3 million from $24.2 million, though results in 2001 included a $26.4 million pretax charge for asset impairments, restructuring and inventory write-downs. Electronics and Communications, the largest segment at 50% of sales, grew to $388.0 million, while Aerospace Engines and Components operating profit fell to $2.7 million from $8.2 million, and management does not expect a meaningful recovery there in 2003.

The company ended 2002 with no long-term debt, compared with $30.0 millionc at year-end 2001, and cash from continuing operations of $74.2 million. Total assets were $391.1 million and stockholders' equity was $176.8 million after a $23.2 million non-cash charge to equity for a minimum pension liability.

Management expects 2003 full-year earnings per share of $0.62 to $0.72d, including about $0.13 per share of non-cash pension expense. Investors should weigh several risks: about 46% of sales came from U.S. Government contracts, the aircraft product liability insurance policy expires in May 2003, pension assets are underfunded with cash contributions expected in 2004, and the company is exploring strategic alternatives, including possible divestiture, for its Aerospace Engines and Components segment.

02—Key points

Key Highlights

  1. Net sales of $772.7 million in 2002, up from $744.3 million in 2001, with net income of $25.4 million ($0.77 per diluted share) versus $6.6 million ($0.20 per diluted share) in 2001.
  2. Electronics and Communications segment sales were $388.0 million, or 50% of total sales, with operating profit of $35.9 million, up from $9.9 million in 2001.
  3. Aerospace Engines and Components operating profit declined to $2.7 million from $8.2 million, and the company is exploring strategic alternatives, including possible divestiture of one or more product lines.
  4. Long-term debt was reduced to zero from $30.0 million at year-end 2001, and cash provided by continuing operations rose to $74.2 million from $19.0 million.
  5. A $23.2 million non-cash charge to stockholders' equity was recorded for a minimum pension liability because pension assets were below the accumulated benefit obligation; cash contributions to the pension plan are expected in 2004 absent improved markets.
  6. Total backlog of confirmed orders was approximately $324.1 million at December 29, 2002, compared with $300.8 million a year earlier.
  7. 2003 outlook calls for full-year diluted earnings per share of $0.62 to $0.72, including about $0.13 per share of non-cash pension expense.

03—Questions

Frequently Asked Questions

  1. How did Teledyne Technologies perform financially in 2002?

    Sales rose to $772.7 million from $744.3 million, and net income was $25.4 million ($0.77 per diluted share), compared with $6.6 million ($0.20 per diluted share) in 2001. The 2001 results included a $26.4 million pretax charge for asset impairments, restructuring and inventory write-downs.

  2. Which business segments drive the company's revenue?

    Electronics and Communications contributed 50% of 2002 sales ($388.0 million), Systems Engineering Solutions 27% ($206.7 million), Aerospace Engines and Components 21% ($162.9 million) and Energy Systems 2% ($15.1 million). The company reported that U.S. Government sales were approximately 46% of total sales in 2002.

  3. What are the main risks to future results?

    The filing cites dependence on U.S. Government contracts, the aircraft product liability insurance policy expiring in May 2003 with rising insurance costs, and the underfunded pension plan that will require cash contributions in 2004 absent improved market conditions. It also notes a False Claims Act lawsuit against the Electronic Safety Products unit, which the company intends to defend.

  4. What is the company's financial position and debt situation?

    At December 29, 2002, the company had no long-term debt outstanding, compared with $30.0 million at year-end 2001, and $200 million of available committed credit under its revolving facility. Total assets were $391.1 million and stockholders' equity was $176.8 million.

  5. What does management expect for 2003?

    Management expects first-quarter 2003 earnings per share of approximately $0.14 to $0.16 and full-year 2003 earnings per share of $0.62 to $0.72, including about $0.13 per share of non-cash pension expense. It anticipates growth in defense electronics and instrumentation but no recovery in short-cycle electronics or commercial aviation markets.

04—Continue

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