Teledyne imaging sales up; e2v approves Teledyne offer
Teledyne Technologies’ Digital Imaging segment sales have grown 8.6 per cent in the fourth quarter of 2016 compared to the same period in 2015, reaching $110.9 million.
The Q4 2016 sales primarily reflected higher sales of machine vision cameras for industrial and semiconductor applications, X-ray detectors for life sciences, micro electro-mechanical systems (MEMS) and geospatial software, according to the company.
Teledyne’s Q4 sales as a whole were $552.9 million, a decrease of 7.0 per cent compared to Q4 2015. The company’s fourth quarter of 2016 includes $7.9 million in acquisition related costs for the pending purchase of e2v Technologies, which Teledyne bought in December 2016 for £620 million.
On 25 January 2017, the board of e2v voted in favour of the resolution to approve the scheme in connection with the offer made by Teledyne.
‘We concluded 2016 with our strongest quarter of the year. Furthermore, we generated record full year cash from operations,’ said Robert Mehrabian, chairman, president and CEO of Teledyne Technologies, in a statement. ‘Most of our commercial businesses are now growing, marine instrumentation comparisons will ease significantly in 2017, and our government businesses have begun to recover.
‘We closed two bolt-on acquisitions in the fourth quarter, and we were pleased to announce the pending acquisition of e2v, our largest transaction to date,’ he continued. ‘I am personally very excited about the pending acquisition of e2v, as every business in its portfolio is complementary to Teledyne. From industrial machine vision to space-based imaging, microwave devices spanning radar to radiotherapy, and specialty semiconductors through micro electro-mechanical systems, our respective capabilities and engineering-centric cultures are truly a great fit.’
Teledyne Technologies’ total year sales from continuing operations for 2016 were $2,139.8 million, compared, a decrease of 6.2 per cent on 2015. Net income from continuing operations was $192.9 million for fiscal year 2016, compared with $198.0 million for fiscal year 2015, a decrease of 2.6 per cent. Net income attributable to Teledyne was $190.9 million for 2016, compared with $195.8 million for 2015, a decrease of 2.5 per cent.
Based on its current outlook, and excluding the e2v transaction, the company’s management believes that first quarter 2017 earnings per diluted share will be in the range of $1.15 to $1.17, and full year 2017 earnings per diluted share will be in the range of $5.40 to $5.50.