Teledyne Technologies Incorporated has recently released its 10-Q report, detailing its operations and financial performance. The company provides enabling technologies for industrial growth markets, including digital imaging sensors and cameras, monitoring and control instrumentation, electronic components and subsystems for aerospace and defense, and systems engineering and integration for various applications. Teledyne emphasizes growth in its four business segments: Digital Imaging, Instrumentation, Aerospace and Defense Electronics, and Engineered Systems, with a focus on balanced and disciplined capital deployment among capital expenditures, acquisitions, product development, and stock repurchases.
In the first quarter of 2024, Teledyne's net sales decreased by 2.4% to $1,350.1 million compared to the same period in 2023. The company's operating income also decreased by 3.4% to $234.3 million. The Aerospace and Defense Electronics segment saw a notable increase in net sales by 7.2%, while the Engineered Systems segment experienced a decrease of 10.5% in net sales.
Cost of sales decreased by 2.6% to $770.2 million, and selling, general and administrative expenses (SG&A) decreased by 1.4% to $296.2 million. Acquired intangible asset amortization remained relatively stable at $49.4 million.
The company's effective tax rate for the first quarter of 2024 was 20.6%, compared to 20.1% for the same period in 2023. Net income attributable to Teledyne decreased marginally by 0.1% to $178.5 million.
In the Digital Imaging segment, net sales decreased by 4.1% to $740.8 million, primarily due to lower sales of industrial imaging cameras and micro-electro-mechanical systems, partially offset by increased sales of infrared detectors and subsystems, as well as unmanned systems.
Teledyne reported supply chain challenges, including long lead times and cost inflation for parts and components, logistics, and labor due to availability constraints and high demand. The company also highlighted potential impacts from exchange rate movements and geopolitical conflicts, as well as ongoing efforts to reduce costs and improve operating performance through facility consolidation and headcount reduction.
Today the company's shares have moved 2.5% to a price of $383.87. For more information, read the company's full 10-Q submission here.
