Teledyne Technologies Updates Earnings Outlook
LOS ANGELES - August 4, 2006 - Teledyne Technologies Incorporated (NYSE:TDY) announced today that it has revised its outlook for third quarter and full year 2006 earnings per share, as a result of the reversal of a $2.6 million ($0.07 per share) income tax contingency reserve. Due to the expiration of the statute of limitations on July 31, 2006, the company determined that the reserve was no longer needed.
Based on its current outlook the company's management believes that third quarter 2006 earnings per share will be in the range of approximately $0.55 to $0.57, compared with the previous estimate of $0.48 to $0.50 per share. The full year 2006 earnings per share outlook is expected to be in the range of approximately $2.11 to $2.15, compared with the previous estimate of $2.04 to $2.08 per share. The company's estimated effective income tax rate for the full year 2006 is 34.8%, including the impact of the reversal of the income tax contingency reserve in the third quarter of 2006.
Teledyne Technologies is a leading provider of sophisticated electronic components, instruments and communication products, systems engineering solutions, aerospace engines and components and on-site gas and power generation systems. Teledyne Technologies has operations in the United States, the United Kingdom, Mexico and Canada. For more information, visit Teledyne Technologies' website at www.teledyne.com.
Forward-Looking Statements Cautionary Notice
This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, relating to earnings. All statements made in this press release that are not historical in nature should be considered forward-looking. Actual results could differ materially from these forward-looking statements. Many factors, including changes in demand for products sold to the semiconductor, defense electronics, communications, commercial aviation and energy exploration markets, funding, continuation, timing and award of government programs, continued liquidity of the company's customers (including commercial aviation customers) and economic and political conditions, could change the anticipated results. In addition, stock market fluctuations affect the value of the company's pension assets.
Global responses to terrorism and other perceived threats increase uncertainties associated with forward-looking statements about the company's businesses. Various responses to terrorism and perceived threats could realign government programs, and affect the composition, funding or timing of the company's programs. Flight restrictions would negatively impact the market for general aviation aircraft piston engines and components.
The company continues to take action to assure compliance with the internal controls, disclosure controls and other requirements of the Sarbanes-Oxley Act of 2002. While the company believes its control systems are effective, there are inherent limitations in all control systems, and misstatements due to error or fraud may occur and not be detected.
Teledyne Technologies' growth strategy includes pending and possible acquisitions. The announced pending acquisitions of Rockwell Scientific and Ocean Design, Inc. are subject to conditions to closing, and if these conditions are not satisfied or waived prior to closing, the acquisitions may not occur. The company cannot provide any assurance as to when, if or on what terms any other acquisitions will be made. Acquisitions involve various inherent risks, such as, among others, the company's ability to integrate acquired businesses and to achieve identified financial and operating synergies.
Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Teledyne Technologies' periodic filings with the Securities and Exchange Commission, including its 2005 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company assumes no duty to update forward-looking statements.