Teledyne
Annual Report 2012

Plain-text annual report

TELEDYNE TECHNOLOGIES Annual Report 2012 DEFENSECOMMERCIALINSTRUMENTATIONGROWTHDESIGNGROWTHADVANCEMENTADVANCE EXPLORATIONPOWERSPECTRUMEXPLORATIONX-RAYMARSSUCCESSCURIOSITYSHAREHOLDEREARNINGSELECTRONICSFLUOROSCOPY RADIOGRAPHYHUBBLECOMMERCIALLECROY BLUEVIEW OPTECHACQUIREUNCOOLEDRECORDAEROSPACEEARNINGSSPECTRUMCUSTOMERS&OILGASINFRAREDMATERIALSDIGITALIMAGINGREVENUESRECORDMARSSCIENCEMARINEINSTRUMENTATIONEverywhereyoulookTM Financial Highlights Selected Consolidated Financial Data (In millions, except per share data) SummaRy FinanCial inFORmaTiOn Sales $ 2,127.3 $ 1,941.9 $ 1,644.2 $ 1,652.1 $ 1,722.0 2012 2011 2010 2009 2008 Net income from continuing operations Income (loss) from discontinued operations, net of taxes Net income attributable to Teledyne Technologies Diluted earnings per common share Continuing operations Discontinued operations Diluted earnings per common share Weighted average common shares outstanding SummaRy BalanCe SheeT DaTa Cash and cash equivalents Working capital Total assets Long-term debt and capital lease obligations Total equity 161.8 2.3 142.1 113.1 119.9 115.9 116.6 0.6 (2.6) (5.3) 164.1 255.2 120.5 113.3 111.3 4.33 0.06 4.39 3.81 3.03 6.84 3.25 0.02 3.17 (0.07) 3.20 (0.15) 3.27 3.10 3.05 37.4 37.3 36.9 36.6 36.5 2012 $45.8 337.5 2,406.4 556.2 1,203.4 2011 $ 49.4 268.5 1,826.1 311.4 984.1 2010 $ 75.1 306.8 1,557.8 265.3 787.0 2009 $ 26.1 242.6 1,421.5 251.6 2008 $ 20.4 274.8 1,534.5 332.1 667.4 506.9 See “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and the “Notes to Consolidated Financial Statements” in the 2012 Annual Report on Form 10-K for additional information regarding Teledyne Technologies Incorporated’s financial data. On April 19, 2011, we completed the sale of our general aviation piston engine businesses, which comprised the former Aerospace Engines and Components segment. Accordingly, our consolidated financial statements have been restated to classify this former segment as a discontinued operation. 3 | | 4| 4 Teledyne LeCroy’s award-winning 12-bit High Definition Oscilloscopes offer electronics technicians and engineers 16 times more resolution than standard 8-bit test equipment. SIGNALTESTMEASUREMENT ENGINEERINGINSTRUMENTATIONEXPERIENCEEXPLORATIONR&D OSCILLOSCOPESOSCILLATORLECROYLEADERSHIPGROWTHCOMMERCIAL FREQUENCY PROTOCOLGLOBALDESIGNHIGH DEFINITION LOGIC65 GHzELECTRONICS RESEARCH LEVERAGE ANALYZERGENERATORPERFORMANCEIntroducing Teledyne leCroy Fifty years ago, Walter LeCroy started a small company in New York to provide high-speed measurement solutions to a growing community of particle physicists. That company has grown to produce the highest performance oscilloscopes and protocol analyzers in the world. As part of Teledyne, LeCroy’s product lineup has never been broader, more competitive, or more compelling to customers than it is today, and Teledyne is pleased to welcome LeCroy to the Teledyne family. Over the past three years, the company has established performance leadership at the high-end of the oscilloscope market. In 2012, Teledyne LeCroy debuted high definition oscilloscopes (HDOs) for the mainstream market. The improvement over traditional oscilloscopes is dramatic and the HDO has been enthusiastically received. These instruments are essential to electronic engineering research and development in markets including telecommunication, semiconductor and consumer electronics, automotive, military and aerospace. Teledyne LeCroy’s growth will come from new product development and technology advances including innovations that leverage the unique Indium Phosphide (InP) technology and ultra high frequency mixed signal design capabilities developed at our Teledyne Scientific R&D laboratories. Headquartered in Chestnut Ridge, NY, Teledyne LeCroy has approximately 500 employees in multiple locations throughout the world. Teledyne LeCroy’s strong product line, R&D heritage, signal processing expertise, and international distribution promise to broaden Teledyne’s portfolio of analytical instrumentation businesses. With industry-leading high definition oscilloscopes (HDO), protocol analyzers, signal generators and multi function instruments, Teledyne LeCroy broadens Teledyne’s instrumentation offerings. Teledyne LeCroy’s high performance test and measurement products are vital tools for electronics engineers around the world. Teledyne LeCroy’s growth path includes next generation products with lower noise and higher native bandwidths using the Indium Phosphide technology developed by Teledyne Scientific. 5 |5 | EverywhereyoulookTMSIGNALTESTMEASUREMENT ENGINEERINGINSTRUMENTATIONEXPERIENCEEXPLORATIONR&D OSCILLOSCOPESOSCILLATORLECROYLEADERSHIPGROWTHCOMMERCIAL FREQUENCY PROTOCOLGLOBALDESIGNHIGH DEFINITION LOGIC65 GHzELECTRONICS RESEARCH LEVERAGE ANALYZERGENERATORPERFORMANCE| 6 Curiosity provided a dramatic self-portrait from Gale crater on Mars. Teledyne Technologies Incorporated Annual Report 2012NAVCAMDESCENTHAZCAMENVIRONMENT EXPLORATIONENERGYSYSTEMSSWITCHESMMRTGLIFEINNOVATIONNAVIGATEGEOPHYSICAL CURIOSITYELECTROMECHANICAL ENERGYRADIOSTOPECURRENT RESEARCH POWERLAUNCHPROFILERRELAYSIMAGINGIMAGEA martian Success Story Teledyne Powers NASA’s Curiosity Rover On August 6, 2012, Teledyne joined science lovers everywhere in congratulating NASA and JPL on the successful deployment of the Mars Science Laboratory (MSL) “Curiosity” rover in Gale crater on Mars. Curiosity is the largest rover launched by NASA to date, and its mission to determine whether Mars is, or ever has been, hospitable to microbial life has already delivered remarkable results. Teledyne had many reasons to applaud, not least of which were the vital contributions Teledyne companies made to the launch, landing, and operation of the mission. Teledyne developed the radioisotope thermoelectric generator system that provides nuclear power to the rover. We also supplied two complex radio frequency modules which were part of the terminal descent and landing unit. Our electromechanical relays and electromechanical transfer switches are used on the rover and the Atlas V launch vehicle, respectively. Finally, Teledyne manufactured the image sensors for Curiosity’s navigation and hazard avoidance cameras. Teledyne is proud to be able to contribute to a project that poses such technical challenges and holds such promise for the advancement of science and knowledge. Teledyne is also pleased to have contributed in so many ways. From the deepest parts of our planet’s oceans to the surface of Mars and beyond the edges of our solar system, Teledyne’s technologies enable exploration, analysis and communication. The Atlas V rocket that launched Curiosity contained electromechanical transfer switches from Teledyne Impulse. Teledyne Microelectronics Technologies and Teledyne Relays provided crucial components used in the descent module. Taken with Teledyne DALSA-built image sensors, this photo shows Curiosity’s radioisotope thermoelectric generator, built by Teledyne Energy Systems. 7 | EverywhereyoulookTM | 8 Teledyne’s autonomous underwater vehicles (AUVs including this GaviaTM model) offer arrays of sensors and custom payload modules for research, monitoring or surveillance tasks where autonomy, cost and ease of deployment matter. P h o t o c o u r t e s y o f B r a n t A l l e n Teledyne Technologies Incorporated Annual Report 2012DOPPLERSUBSEASEABEDENVIRONMENT EXPLORATIONENERGYEXPLORATIONPLUMESUBUNDERWATERNAVIGATEGEOPHYSICAL MARINEOCEANOGRAPHYWATERPRODUCTIONCURRENT RESEARCH AQUACULTUREEPSOILGASPROFILERPIPELINEIMAGINGEXTREMESCIENCEREVENUEINSTRUMENTATION Teledyne marine Riding a Tide of Success and Growth Teledyne Marine has become one of the key growth platforms of our Instrumentation segment. From its inception in 2004, Teledyne Marine has grown more than elevenfold to account for nearly 20% of Teledyne’s total revenue. What has driven this growth? Over the last decade, the increase in offshore energy prospecting and production, the rise in overall maritime traffic and the expanding construction of marine-based renewable energy infrastructure have meant increased demand for hydrographic surveys, oceanographic measurements and deep sea imaging. With our extensive range of water column, geophysical, seismic, and dynamic positioning sensors, including bathymetry, navigation and acoustic communication instruments as well as autonomous underwater vehicles, Teledyne Marine offers world-leading capabilities to world-class customers engaged in offshore oil & gas, oceanographic research, undersea telecommunications and naval defense. The applications for marine instrumentation are as expansive as the seas themselves. Teledyne sees robust growth on the horizon as it hones its leading portfolio of underwater technologies to address challenges in extremely harsh environments and provide solutions from surface to seafloor with its array of mobile underwater sensor platforms, unmanned submersibles and multibeam sonar instruments. Teledyne’s autonomous underwater vehicles offer self-contained solutions for bathymetry, pipeline inspections, and environmental surveys. Teledyne’s wide portfolio of marine sensing solutions can be networked together. Teledyne’s high resolution multibeam sonar serves underwater navigation, monitoring, survey, and detection. 9 | P h o t o c o u r t e s y o f B r a n t A l l e n EverywhereyoulookTM | 10 Colorized RGB point cloud of street in Toronto, Canada, collected by LIDAR imaging using Optech’s Lynx Mobile Mapper. Teledyne Technologies Incorporated Annual Report 2012VISIBLEINFRAREDIMAGE CAPTURE DATA FUSION LIDARX-RAYMEGAPIXELSOBSERVATIONSPECTRUMULTRAVIOLET DIGITALIMAGINGMICROBOLOMETERMULTISPECTRALIMAGE CAPTURE EARTHCCDMAPPINGINTEGRATEDGISCMOSHIGHPERFORMANCEINSPECTIONINDUSTRIALInGAsHgCdTeSENSORSSMART CAMERAS Expanding horizons Digital Imaging from Infrared to X-ray The growth in the Digital Imaging segment is a great example of the transformation of Teledyne’s business portfolio towards commercial and international markets. Primarily through targeted acquisitions, the Digital Imaging segment has increased to 20% of Teledyne’s total revenue, from 8% just two years ago. Teledyne’s exceptional imaging solutions extend across the electromagnetic spectrum from infrared to X-ray. Our cooled infrared image sensors define the state of the art for astronomy, which is why you’ll find them in the Mauna Kea observatories and the Hubble and James Webb space telescopes. Our connection to space continues with the new MUSES multi-instrument commercial earth imaging platform we’re building to install on the International Space Station (ISS). The demand for infrared is also growing in commercial markets, where we are leveraging our MEMS (microelectromechanical systems) fabrication capabilities to deliver uncooled microbolometer detectors to complement the world-leading high-speed, high resolution visible spectrum imaging components we already provide for machine vision and factory automation. Even farther up the frequency spectrum, our CMOS (complementary metal oxide semiconductor) digital X-ray detectors, which provide better performance at lower radiation doses than any competitor, have been extremely well received in medical and dental radiography applications. Going forward, we see exciting opportunities to network multiple types of sensors and combine their data—infrared, visible, ultraviolet, X-ray, and LIDAR (light detection and ranging) sensing on the ground and in the air, plus acoustic sensing underwater—to offer advanced and integrated multispectral solutions. Across the spectrum, from sea to surface to sky, Teledyne offers unprecedented imaging capabilities—not only everywhere you look, but every way you look. Teledyne offers a range of infrared imagers, both cooled and uncooled, to cover short wave, medium wave, and long wave IR imaging. Teledyne and NASA entered an agreement to develop the Multi-User System for Earth Sensing (MUSES) Earth imaging platform for the International Space Station. Teledyne’s world-leading CMOS X-ray detectors provide better images at a lower dose for medical, dental, and industrial imaging applications. 11 | EverywhereyoulookTM | 12 Our products are used throughout the life cycle of offshore energy projects from early seafloor and seismic surveys, through construction and operation of deepwater wells, and for the developing market of long term reservoir monitoring. Teledyne Technologies Incorporated Annual Report 2012 INTERFACINGEXPANSION INNOVATION DISTRIBUTIONRESEARCH SCIENCE PIPLELINEFIELD PERFORMANCE OIL &GASINSTRUMENTATIONEXPLORATIONPOWER DATA DEVELOPING MARKETS MAPPINGINTEGRATEDHARSHCONDITIONS RUGGEDIZEDRESERVES WET-MATE RELIABILITYHYDROCARBONSSYSTEMSINTERCONNECTDEEP WATER SUBSEAELECTRICALOPTICAL NETWORKING Teledyne Oil & Gas Supplying Mission Critical Systems to the Oil & Gas Industry Increasing global demand for oil and gas, driven primarily by developing nations such as China and India, is fueling significant investments by oil companies in the discovery and development of subsea hydrocarbon reserves. Emerging exploration technologies are moving the industry into deeper water where discoveries of complex reservoirs are in turn requiring the development of new production technologies and enhanced oil recovery techniques. The deeper production fields require subsea boosting and pumping technologies that use Teledyne Oil & Gas next generation high power interconnect systems. Funded by the oil companies themselves, these systems are jointly developed with customers and leverage the leading edge materials science research done at our Teledyne Scientific R&D laboratories to identify new materials and certify performance—including operating life greater than 25 years. Our emphasis on delivering long-term reliability is clear in the development of new subsea natural gas fields, such as in southeast Asia. The highly caustic, pipeline-corroding substances (e.g. hydrogen sulfide) that these fields contain make our high resolution pipeline monitoring sensors and systems very valuable to production companies. Our R&D capabilities will be further enhanced by a 50,000 square foot Technology Development Center opening in mid-2013 at the Teledyne Oil & Gas world headquarters in Daytona Beach, Florida. Through our global locations and recent expansions in Brazil and Asia, Teledyne Oil & Gas delivers innovative engineered solutions to solve sensing and high power, high bandwidth interconnection challenges both above and below the surface. Our new 50,000 square foot research center in Daytona Beach, Florida will house laboratory, product design, product testing and engineering collaboration space. Teledyne’s wet-mate electrical and fiber-optic interconnect systems allow installation, maintenance, and upgrade of subsea networks in the harshest environments. Photo credit: UVic NEPTUNE World-class companies use our solutions in oil and gas exploration and production around the world. 13 | EverywhereyoulookTM Teledyne Technologies Incorporated Annual Report 2012 Letter to Stockholders In 2012, we accelerated Teledyne’s ongoing transformation into a higher technology company serving industrial growth markets, such as offshore energy, high-end digital imaging and analytical and electronic test and measurement instrumentation. Given the strength of our commercial businesses, as well as strategic acquisitions, we were able to achieve record sales and earnings in 2012. Record Performance • Sales of $2.13 billion increased 9.5% • Earnings per share from continuing operations $4.33 increased 13.6% Today, Teledyne has the greatest proportion of international and commercial sales in our history. International sales in 2012 were 39% of total revenue and exceeded U.S. commercial sales by ten percentage points. Despite the challenging regional economic environment, our sales to Europe increased given strong growth of marine instrumentation. We also continued to experience growth in Asia, largely driven by increased Robert Mehrabian Chairman, President and Chief Executive Officer, Teledyne Technologies Incorporated sales of instrumentation and avionics systems. Finally, the U.S. Government accounted for only 32% of total sales, a decrease from 47% just three years ago. Continued Focus on expanding the Spectrum of our Capabilities We have maintained a strategic focus on development and acquisition of product lines throughout the electromagnetic and acoustic spectra. During 2012, we acquired complementary 3D acoustic imaging and broadband electromagnetic instrumentation product lines, as I will describe below. Growth in Technologies for Offshore energy and Global infrastructure Our products are used throughout the life cycle of offshore energy projects from early seafloor and seismic surveys, through construction and operation of deepwater wells, and for the developing market of long term reservoir monitoring. Sales of marine instrumentation grew 12% in 2012, with international sales representing over 60% of the total. Although the majority of our sales are for oil and gas applications, we are also seeing growth in renewable energy, such as offshore wind farms. TELEDYNE TECHNOLOGY: COVERING THE FREQUENCY SPECTRUM 10-9 10-8 10-7 10-6 10-5 10-4 10-3 10-2 10-1 100 101 102 103 X-Ray Ultraviolet Visible Infrared Microwave Radio 1017 1016 1015 1014 1013 1012 1011 1010 109 108 107 106 105 WAVELENGTH(m) FREQUENCY(Hz) | 14 EverywhereyoulookTM In July, we acquired BlueView Technologies, to expand our capabilities in 2D and 3D sonar imaging, with growing applications in subsea oil and gas, marine science and defense. We also introduced a new multibeam sonar to address the value end of the seafloor mapping, or hydrographic survey market. Then, in January 2013 we announced the pending acquisition of RESON, a leading provider of multibeam sonar systems and specialty acoustic sensors for hydrography, global marine infrastructure and offshore energy operations. RESON’s products, which address the midrange and higher performance segments of the hydrographic survey market, are very complementary to our existing instruments. REsON’s broad range of seafloor mapping and 3D imaging sonars are complementary to Teledyne’s existing product lines. expansion into Test and measurement instrumentation We expanded our broad line of analytical instruments for environmental, process control and laboratory markets by acquiring LeCroy Corporation, a leading manufacturer of electronic test and measurement systems. Teledyne LeCroy is a leader in high-end oscilloscopes, including the new LabMaster 10Zi, which features an unprecedented real-time bandwidth of 65 GHz. We anticipate further advancements in oscilloscope performance over time as we begin to apply the very high performance indium phosphide semiconductor technology that has been developed at our research center to future generations of oscilloscope probes and instruments. The LabMaster 10 Zi is the world’s highest bandwidth real-time oscilloscope. In the fourth quarter, Teledyne LeCroy launched the industry’s first line of high-definition oscilloscopes. These new products are based on the market’s only true 12-bit signal acquisition technology, which provides 16 times the measurement resolution of the 8-bit technology used by virtually all competitors. This high resolution is important for an increasing number of customer applications, ranging from automotive electronics component development to mobile devices. advancements in Digital imaging Teledyne’s broad range of digital imaging technologies includes 3D laser imaging, or LIDAR, infrared, X-ray, and ultraviolet sensors, linescan and area array cameras, imaging software, and integrated imaging solutions. Sales of our high- resolution, low-dose X-ray sensors for medical and dental applications grew strongly during the year as new products reached production while we continued to perform well on major development contracts. 10-9 10-8 10-7 10-6 10-5 10-4 10-3 10-2 10-1 100 101 102 103 WAVELENGTH(m) FREQUENCY(Hz) X-Ray Ultraviolet Visible Infrared Microwave Radio 1017 1016 1015 1014 1013 1012 1011 1010 109 108 107 106 105 15 | Teledyne Technologies Incorporated Annual Report 2012 In April, we increased our ownership in the parent company of Optech Incorporated from 19% to 51%. Optech is a leading supplier of airborne and terrestrial 3D laser imaging systems used for a wide range of survey applications. Optech’s LIDARs have been integrated with BlueView and RESON sonars. Using imaging fusion software, the integrated systems can capture 3D images of offshore oil platforms, bridges and other structures above and below the waterline and produce a composite 3D image with precise dimensional measurements. Our digital imaging solutions span the range from airborne to subsea, and increasingly feature multisensor 3D image fusion. In partnership with NASA, we have embarked on an exciting new project to add digital imaging technology to the International Space Station. Anticipated to be operational in 2015, the Multi- User System for Earth Science (MUSES) will enable remote space sensing for scientific and humanitarian purposes and will enable Teledyne to address the commercial market for Earth imagery. Our digital imaging solutions span the range from airborne to subsea, and increasingly feature multisensor 3D image fusion. Stabilizing aerospace and Defense Products and Services Sales of avionics systems for commercial air transport applications reached record levels in 2012. Our leading position The MUsEs system will provide Earth imagery for scientific, humanitarian and commercial applications. in end-to-end solutions for airline data management continued to attract new customers and expanded business with existing customers. Facing a weak market for defense electronic products and government systems, we are consolidating operations to drive down our cost structure. Despite the defense spending downturn, there are some bright spots in this market including production of autonomous underwater glider vehicles and sensors for the U.S. Navy, development of the Shallow Water Combat Submersible vehicle that will be used to transport Special Operations Forces, and a major contract to develop and construct the test framework for all the missile defense system elements. We also supply microwave power amplifiers and other subsystems for UAV data links and for both government and commercial satellite communication systems. ELECTROMAGNETIC SPECTRUM 1017 1016 1015 1014 1013 1012 1011 1010 109 108 107 106 105 X-Ray Ultraviolet Visible Infrared Microwave Radio • Trace element spectrometers (ultraviolet) • Package inspection systems (X-Ray) • High performance image sensors and cameras for ultraviolet, visible and infrared • Environmental gas analyzers FREQUENCY(Hz) | 16 EverywhereyoulookTM looking ahead Despite the continued economic and government funding uncertainty, we entered 2013 with the strength of our balanced business portfolio and now we have the greatest proportion of commercial and international sales in our history. While we expect continued contraction in government sales, these represent a smaller percentage of our revenue and an even lower proportion of our earnings. Our customers in the offshore oil and gas industry are forecasting strong growth in coming years as it becomes increasingly necessary to move operations to deeper waters where Teledyne has a technical advantage, propelled by our strong capabilities in materials research, product engineering and manufacturing. We also anticipate strength in commercial avionics, given high multiyear backlogs at Airbus and Boeing. There is greater uncertainty about other commercial markets that are tied to world economic conditions, but we expect that our continued company and customer funded investments in research and development will put us in a strong competitive position. I wish to express my thanks to all of our employees and to our Board of Directors for their hard work and continued commitment to making Teledyne a stronger company. Finally, all of us at Teledyne are deeply saddened by the passing of Dr. George A. Roberts on February 15, 2013. George Roberts entered the United States Naval Academy in 1935, where he and his roommate, Henry Singleton, first met. George later attended the Carnegie Institute of Technology (now Carnegie Mellon University) where he studied metallurgical science and received a D.Sc. in 1942. While friends over the years, George and Henry reunited in 1966, when our predecessor, Teledyne, Inc., founded by Henry, merged with Vasco Metals Corporation, where George had become President and Chairman of the Board. Following the merger of Teledyne and Vasco, Henry became Chairman and Chief Executive Officer, and George was made President. Over the next 27 years, with George as President and later Chief Executive Officer, Teledyne grew immensely. Some of the original businesses of Teledyne, Inc. continue to reside in our operations. George’s passing, along with Henry’s on August 31, 1999, closes a significant chapter in Teledyne’s history. We are privileged to be the standard bearer of the Teledyne name and will continue their heritage of putting our stockholders’ interests first. Sincerely, Robert Mehrabian Chairman, President and Chief Executive Officer February 26, 2013 1017 1016 1015 1014 1013 1012 1011 1010 109 108 107 106 105 FREQUENCY(Hz) X-Ray Ultraviolet Visible Infrared Microwave • High power microwave amplifiers for satellite communication uplinks • Frequency synthesizers Radio • Radio frequency microwave relays and switches • Radio frequency and microwave cables 17 | Teledyne Board of Directors Left to Right: ChaRleS CROCkeR (2)(3) Chairman and CEO, Crocker Capital Retired Chairman and CEO, BEI Technologies, Inc. FRank V. CahOueT (1)(2) Retired Chairman and CEO, Mellon Financial Corporation WeSley W. VOn SChaCk (2)(3) Chairman, AEGIS Insurance Company Former Chairman, President and CEO, Energy East Corporation ROBeRT mehRaBian Chairman, President and CEO, Teledyne Technologies Incorporated Paul D. milleR (1)(2) Retired Chairman and CEO Alliant Techsystems, Inc. kenneTh C. DahlBeRG (1)(3) Retired Chairman and CEO, Science Applications International Corporation (SAIC) miChael T. SmiTh (1)(2) Retired Chairman and CEO, Hughes Electronics Corporation RuTh e. BRuCh (1)(3) Retired Senior Vice President and Chief Information Officer of Kellogg Company ROxanne S. auSTin (2)(3) President, Austin Investment Advisors Former President and Chief Operating Officer of DIRECTV, Inc. SimOn m. lORne (1)(2) Vice Chairman and Chief Legal Officer, Millennium Management LLC Co-director of Stanford Law School’s Directors’ College (1) Audit Committee (2) Nominating and Governance Committee (3) Personnel and Compensation Committee | 18 Teledyne Technologies Incorporated Annual Report 2012 Corporate Management ROBeRT mehRaBian* Chairman, President and Chief Executive Officer melanie S. CiBik* Senior Vice President, General Counsel and Secretary SuSan l. main* Senior Vice President and Chief Financial Officer CynThia y. Belak Vice President, Business Risk Assurance STePhen F. BlaCkWOOD Vice President and Treasurer GeORGe C. BOBB, iii* Vice President, Chief Compliance Officer and Deputy General Counsel - Litigation WaJiD ali* Vice President and Controller ROByn e. mCGOWan Vice President, Administration, Human Resources and Assistant Secretary PaTRiCk T. neVille Vice President and Chief Information Officer ROBeRT W. STeenBeRGe Vice President and Chief Technology Officer JaSOn VanWeeS Vice President, Strategy and Mergers & Acquisitions Segment Executives alDO (al) PiChelli* Instrumentation and Aerospace and Defense Electronics Segments Rex D. GeVeDen* Engineered Systems Segment and Teledyne Scientific & Imaging, LLC Stockholder Information BRian C. DOODy Teledyne DALSA, Inc. ThOmaS h. ReSleWiC Teledyne LeCroy, Inc. CORPORaTe OFFiCeS Teledyne Technologies Incorporated 1049 Camino Dos Rios Thousand Oaks, CA 91360 Telephone: (805) 373-4545 Fax: (805) 373-4775 www.teledyne.com TRanSFeR aGenT anD ReGiSTRaR Computershare 480 Washington Boulevard Jersey City, NJ 07310 Customer Service: 1-888-540-9867 www.computershare.com * Section 16 Officer STOCkhOlDeR PuBliCaTiOnS - FORm 10-k Annual reports (including Form 10-K) and proxy statements are mailed to all stockholders of record. Copies of our SEC periodic reports, corporate governance guidelines, code of ethics and committee charters are also available on our web site at www.teledyne.com. For additional informa- tion, contact Corporate Communications or Investor Relations. STOCk exChanGe liSTinG The common stock of Teledyne Technologies Incorporated is traded on the New York Stock Exchange (symbol TDY). annual meeTinG The annual meeting of stockholders will be held on Wednesday, April 24, 2013, at 9:00 a.m. PDT, at Teledyne Technologies Incor- porated, 1049 Camino Dos Rios, Thousand Oaks, CA 91360. inDePenDenT auDiTORS Ernst & Young LLP Los Angeles, California CuRRenT neWS anD GeneRal inFORmaTiOn Information about Teledyne is available at www.teledyne.com. 19 | EverywhereyoulookTM Forward-Looking Statements Cautionary Notice From time to time the Company makes, and this Annual Report, may contain, forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, directly and indirectly relating to earnings, growth opportunities, product sales, capital expenditures, pension matters, stock option compensation expense, the credit facility, interest expense, severance and relocation costs, taxes and strategic plans. All statements made in this Annual Report that are not historical in nature should be considered forward-looking. Actual results could differ materially from these forward-looking statements. Many factors could change the anticipated results: including disruptions in the global economy; changes in demand for products sold to the defense electronics, instrumentation, digital imaging, energy exploration and production, commercial aviation, semiconductor and communications markets; funding, continuation and award of government programs; cuts to defense spending resulting from future deficit reduction measures, including potential automatic cuts to defense spending that have been triggered by the Budget Control Act of 2011. Increasing fuel costs could negatively affect the markets of our commercial aviation businesses. Lower oil and natural gas prices, as well as instability in the Middle East or other oil producing regions, and new regulations or restrictions relating to energy production, including with respect to hydraulic fracturing could negatively affect our businesses that supply the oil and gas industry. In addition, financial market fluctuations affect the value of our pension assets. Changes in the policies of U.S. and foreign governments could result, over time, in reductions and realignment in defense or other government spending and further changes in programs in which the Company participates. While Teledyne’s growth strategy includes possible acquisitions, we cannot provide any assurance as to when, if or on what terms any acquisitions will be made. Acquisitions involve various inherent risks, such as, among others, our ability to integrate acquired businesses, retain customers and achieve identified financial and operating synergies. There are additional risks associated with acquiring, owning and operating businesses outside of the United States, including those arising from U.S. and foreign government policy changes or actions and exchange rate fluctuations. The Company continues to take action to assure compliance with the internal controls, disclosure controls and other requirements of the Sarbanes-Oxley Act of 2002. While we believe our control systems are effective, there are inherent limitations in all control systems, and misstatements due to error or fraud may occur and may not be detected. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Teledyne Technologies’ periodic filings with the Securities and Exchange Commission, including its 2012 Annual Report on Form 10-K. Forward-looking statements are generally accompanied by words such as “estimate”, “project”, “predict”, “believes” or “expect”, that convey the uncertainty of future events or outcomes. The Company assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or otherwise. Copyright © 2013 Teledyne Technologies Incorporated. All Rights Reserved. Editors: Patrick Myles & Neil Humphrey | Designer: Laura Fama | Printed in Canada. TELEDYNE TECHNOLOGIES www.teledyne.com 1049 Camino Dos Rios, Thousand Oaks, California 91360 • 805.373.4545 • fax: 805.373.4775 DEFENSECOMMERCIALINSTRUMENTATIONGROWTHDESIGNGROWTHADVANCEMENTADVANCE EXPLORATIONPOWERSPECTRUMEXPLORATIONX-RAYMARSSUCCESSCURIOSITYSHAREHOLDEREARNINGSELECTRONICSFLUOROSCOPY RADIOGRAPHYHUBBLECOMMERCIALLECROY BLUEVIEW OPTECHACQUIREUNCOOLEDRECORDAEROSPACEEARNINGSSPECTRUMCUSTOMERS&OILGASINFRAREDMATERIALSDIGITALIMAGINGREVENUESRECORDMARSSCIENCEMARINEINSTRUMENTATION

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