Company: TDY
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0001094285-25-000140
Chunk: 51

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 to emphasize growth in our four business segments: Digital Imaging, Instrumentation, Aerospace and Defense Electronics 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.

Trends and Other Matters Affecting Our Business

The global trade environment continues to be highly dynamic, including new potential tariffs and retaliatory tariffs, and a number of the tariffs remain in effect. There have been continuing significant tariffs and trade sanctions between the United States and China, including in each country designation of persons with trading restrictions.  China has also restricted the export of certain rare earth minerals which are used in our products, which could disrupt the supply chain for these minerals and components made from these materials.  Tariffs, trade restrictions and retaliatory measures could result in revenue reductions, 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.  To date, our strategies have helped minimize our exposure to these conditions. 

The current U.S. Government shutdown could negatively impact our businesses.  Previous U.S. Government shutdowns have resulted in delays in anticipated contract awards, issuances of export licenses, shipments and payments of invoices for several of our businesses, and the current shutdown could have similar or worse effects.

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 against the U.S. dollar.  See Note