Teledyne Technologies Cuts Q3, FY15 Earnings Outlook

(RTTNews) - Sophisticated instrumentation, digital imaging products provider Teledyne Technologies Inc. (TDY) Monday announced a cut in third quarter and full year earnings projections, owing to lower sales, currency impacts and higher tax rates.

The company now expects third quarter earnings in the range of around $1.30 to $1.33 per share, while the prior outlook was for $1.45 to $1.48 per share. On average, 7 analysts polled by Thomson Reuters is looking for $1.47 per share.

For the full year 2015, the company's projection is for earnings in the range of approximately $5.10 to $5.17, down from the previous outlook of $5.60 to $5.65 per share. Wall Street expects $5.62 per share.

Robert Mehrabian, chairman, president and chief executive officer said, sales of marine and electronic test and measurement instrumentation declined from last year and were lower than previously forecasted. He further said, sales to offshore energy markets generally declined as expected in the third quarter, orders have slowed in recent weeks.

The company pointed out that the strong U.S. dollar and challenging capital spending environment impacted demand from emerging markets, resulting in lost sales in the third quarter. The company's tax rate increased, as a result of reduced international sales.

Teledyne said its estimated pretax severance charges for the full year totals approximately $8 million. Effective tax rate for full year 2015 is now expected to be 30.8 percent, before discrete items, compared to a prior outlook of 29.5 percent.