Company: TDY
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001094285-25-000105
Chunk: 75

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 and Engineered Systems.  The markets in which we sell our enabling technologies are characterized by high barriers to entry and include specialized products and services not likely to be commoditized.  We intend to strengthen and expand our business with targeted acquisitions and through product development.  We continue to focus on balanced and disciplined capital deployment among capital expenditures, acquisitions, stock repurchases and product development.  We aggressively pursue operational excellence to continually improve our margins and earnings by emphasizing cost containment and evaluating cost reductions in all aspects of our business.  At Teledyne, operational excellence includes the rapid integration of the businesses we acquire.  Using complementary technology across our businesses and through targeted research and development (“R&D”), we seek to create new products to grow our company and expand our addressable markets.  We continually evaluate our businesses to ensure that they are aligned with our strategy.

Consistent with our strategy, we completed two acquisitions each in the first quarter of 2025 and the full year of 2024.  The financial results of the completed acquisitions have been included since the respective date of each acquisition.

Trends and Other Matters Affecting Our Business

In early 2025, the U.S. Presidential administration implemented significant new tariffs on foreign imports impacting multiple countries, commodities and industries, and these new tariffs and export restrictions also prompted retaliatory tariffs and export restrictions from certain countries.  As of April 2025, certain tariffs and retaliatory tariffs have been delayed, but a number of the new tariffs remain in effect, including significant tariffs and trade sanctions between the United States and China.  Our net sales to China-based customers represented approximately 4% of total revenues in 2024, of which less than 50% of these sales were made directly from our U.S. subsidiaries.  China has also restricted the export of certain rare earth minerals which are used in our products.  Tariffs, trade restrictions and retaliatory measures could result in revenue reduction, cost increases on material used in our products or significant production delays, which could adversely affect our business, financial condition, operational results and cash flows.  Consistent with our strategy, we are optimizing operations and facilities and taking measures to contain costs to reduce the impact from tariffs.  We may also implement additional pricing actions to mitigate the impact of these tariffs.

Sales recorded and costs incurred recorded by subsidiaries operating outside of the United States are translated into U.S. dollars using exchange rates effective during the respective period.  As a result, we are exposed to movements in the exchange rates of various currencies