Teledyne Technologies today reported second quarter 2010 sales of $442.5 million, compared with sales of $441.1 million for the same period of 2009. Net income for the second quarter of 2010 was $28.6 million ($0.78 per diluted share), compared with net income of $25.2 million ($0.69 per diluted share) for the second quarter of 2009.

"Our commercial businesses continued to recover nicely in the quarter," said Robert Mehrabian, Chairman, President and Chief Executive Officer. "Our Electronics and Communications segment performed well as a result of double-digit sales growth and margin improvement in our commercial electronic instrumentation businesses. Our commercial aerospace businesses also performed strongly with increased sales and improved margins. In June 2010, we acquired Optimum Optical Systems, our second investment in tactical military imaging and optics businesses this year. In addition, in July 2010 we completed the acquisition of Intelek plc, expanding our capabilities in microwave systems. Specifically, Intelek's Paradise Datacom division manufactures high power solid state amplifiers and modems for commercial customers which complement Teledyne's strong position in broadband high power traveling wave tube and lower power solid state subsystems, primarily for military customers."

Review of Operations (Comparisons are with the second quarter of 2009, unless noted otherwise).

Electronics and Communications

The Electronics and Communications segment's second quarter 2010 sales were $323.8 million, compared with $305.1 million, an increase of 6.1%. Second quarter 2010 operating profit was $41.6 million, compared with operating profit of $39.9 million, an increase of 4.3%.

The second quarter 2010 sales change resulted primarily from higher sales of electronic instrumentation, partially offset by lower sales of other commercial electronics. Sales of electronic instrumentation primarily reflected higher sales of marine and environmental instrumentation products. Lower sales of other commercial electronics primarily reflected reduced sales from product lines which the company is exiting, such as commercial electronic manufacturing services and telecommunication subsystems partially offset by higher sales for relay products. Sales of defense electronics increased slightly and included $0.4 million in sales from the acquisition of Optimum Optical Systems, Inc. in June 2010. The increase in operating profit reflected the impact of higher sales, partially offset by charges of $8.2 million, primarily to correct inventory valuations incorrectly recorded in previous periods at a business unit.

Operating profit in the second quarter of 2010 also included $0.7 million in professional fees related to acquisition activity. Operating profit included pension expense of $0.8 million in the second quarter of 2010, compared with $2.4 million. Pension expense allocated to contracts pursuant to U.S. Government Cost Accounting Standards (CAS) was $0.7 million in the second quarter of 2010, compared with $0.6 million.