Teledyne Technologies Incorporated (TDY) has reported a 7.66 percent rise in profit for the quarter ended Oct. 02, 2016. The company has earned $52 million, or $1.46 a share in the quarter, compared with $48.30 million, or $1.34 a share for the same period last year. Revenue during the quarter dropped 4.51 percent to $526.80 million from $551.70 million in the previous year period. Gross margin for the quarter expanded 151 basis points over the previous year period to 39.83 percent. Total expenses were 86.62 percent of quarterly revenues, down from 86.99 percent for the same period last year. This has led to an improvement of 37 basis points in operating margin to 13.38 percent.
Operating income for the quarter was $70.50 million, compared with $71.80 million in the previous year period.
"In the third quarter, we continued to achieve organic growth in our commercial imaging and aerospace businesses. Sales of electronic test and measurement instrumentation also increased nicely," said Robert Mehrabian, chairman, president and chief executive officer. "I am very pleased with our execution across Teledyne, especially given the generally weaker capital spending environment. Our earnings and cash from operations were at record levels for any third quarter. Furthermore, Teledyne’s GAAP operating margin was an all-time record. Despite continued weakness in energy markets and while we remain cautious, we also believe that our marine instrumentation businesses, collectively, have bottomed. Finally, given our resilient business portfolio and strong balance sheet, we are committed to ongoing investment in research and development, as well as disciplined acquisitions."
For fiscal year 2016, Teledyne Technologies Incorporated expects diluted earnings per share from continuing operations to be in the range of $5.26 to $5.31.
For the fourth-quarter 2016, Teledyne Technologies Incorporated expects diluted earnings per share from continuing operations to be in the range of $1.32 to $1.37.
Working capital drops significantly
Teledyne Technologies Incorporated has witnessed a decline in the working capital over the last year. It stood at $322.20 million as at Oct. 02, 2016, down 29.20 percent or $132.90 million from $455.10 million on Sep. 27, 2015. Current ratio was at 1.61 as on Oct. 02, 2016, down from 2.11 on Sep. 27, 2015. Cash conversion cycle (CCC) has decreased to 72 days for the quarter from 113 days for the last year period. Days sales outstanding went up to 66 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 47 days for the quarter compared with 88 days for the previous year period. At the same time, days payable outstanding went up to 41 days for the quarter from 40 for the same period last year.
Debt comes down
Teledyne Technologies Incorporated has recorded a decline in total debt over the last one year. It stood at $613 million as on Oct. 02, 2016, down 13.99 percent or $99.70 million from $712.70 million on Sep. 27, 2015. Total debt was 21.94 percent of total assets as on Oct. 02, 2016, compared with 25.72 percent on Sep. 27, 2015. Debt to equity ratio was at 0.40 as on Oct. 02, 2016, down from 0.50 as on Sep. 27, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
