On April 28th, Teledyne Technologies published its financial results for Q1 2021. These show that the company achieved record results during the first quarter. Robert Mehrabian, Executive Chairman, commented: “We began 2021 with the best first-quarter sales, earnings, operating margin and cash flow in the company’s history”. Quarterly sales reached $805.7m, compared with $784.6m in Q1 2020, an increase of approximately +2.7% year-on-year. Net income was $84.7m, compared with $82.2m in Q1 2020, an increase of +3% year-on-year. These results reflect the aggregated performance of the companies four reportable segments:
- Instrumentation
- Digital Imaging
- Aerospace and Defense Electronics
- Engineered Systems
The Digital Imaging Segment
The digital imaging segment encompasses a portfolio of digital imaging products for use in industrial, government and medical applications. This includes sensors, cameras and systems, within the visible, infrared and X-ray spectra, such as its series of CMOS based X-ray detectors. The segment also includes its semiconductor business, analogue-to-digital converters as well as micro-electro-mechanical systems (“MEMS”). The digital imaging segment has principal operations in the United States, Canada, France, the Netherlands and the United Kingdom.
The Digital Imaging segment’s first quarter 2021 net sales were $263.3 million, compared with $246.7 million, an increase of 6.7%. Operating income was $52.0 million for the first quarter of 2021, compared with $43.8 million, an increase of 18.7%. The first quarter of 2021 net sales primarily reflected greater sales of industrial and scientific sensors and cameras, detectors for space imaging applications, as well as geospatial imaging systems. The increase in operating income in the first quarter of 2021 reflected the increase in sales as well as improved margins across most product categories.
Outlook for 2021
Given the strong first quarter, the company revised the outlook for total company organic sales growth in 2021. The company projects overall organic sales growth of approximately 6% in 2021, led by forecasted growth of about 10% in Digital Imaging. During the Q1 earnings call, Robert Mehrabian, Executive Chairman, commented: “Healthcare year-over-year 2019 to 2020, we had about 13.7% decrease in revenue from $255 million to $220 million. This year, we’re starting to see some improvements, and we anticipate that between our CMOS X-ray panels as well as some of the equipment that we supply, for X-ray sources, we will have an increase of about 9% over last year to approximately $240 million. The recovery is a little slower than we anticipated. But it is there. We are getting some really good orders in that domain. More in the flat panel displays, with the X-ray sources kind of lagging a little bit, but still coming up.”
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