TDY » Topics » 2008 compared with 2007

These excerpts taken from the TDY 10-K filed Feb 26, 2009.
2008 compared with 2007
 
Our Electronics and Communications segment sales were $1,276.6 million in 2008, compared with sales of $1,071.6 million in 2007, an increase of 19.1%. Operating profit was $183.0 million in 2008, compared with $143.2 million in 2007, an increase of 27.8%.
 
The 2008 sales growth of $205.0 million resulted primarily from revenue growth in electronic instruments and defense electronics, partially offset by lower sales of other commercial electronics. The revenue growth of $141.9 million in electronic instruments was driven by organic sales growth and the acquisitions, including DGO, Impulse, Storm, TSS, Webb and Cormon. Organic sales growth in electronic instruments reflected increased sales of geophysical sensors for the energy exploration market, other marine instruments and environmental instruments for the air and water monitoring markets. We currently expect a contraction in the second half of 2009 in sales of marine instruments that serve the offshore exploration market. The incremental increase in revenue from acquisitions in electronic instruments for 2008, compared with 2007, was $98.0 million. The revenue growth of $66.9 million in defense electronics was driven by organic sales growth and acquisitions, including Storm, Judson and the Defense Electronics business of Filtronic PLC. The increase in revenue from acquisitions in defense electronics products for 2008, compared with 2007, was $44.9 million. Organic growth of defense electronics for 2008 was primarily due to higher sales of defense manufacturing services, as well as increased sales of imaging sensors and subsystems and greater sales of microwave components and subsystems. Revenue in avionics and other commercial electronics decreased by $3.8 million and primarily reflected decreased sales of medical electronic manufacturing services. In 2008, for the Electronics and Communications segment, revenues increased by $142.9 million and operating profit, including synergies, increased by $17.8 million due to the incremental impact of acquisitions that we acquired since 2006. Segment operating profit was favorably impacted by the increase in revenue and sales mix. Segment operating profit was negatively impacted by $3.5 million of stock option compensation expense in 2008 compared with $3.1 million of stock option compensation expense in 2007. Fiscal year 2008 also reflected lower LIFO expense of $1.0 million compared with fiscal year 2007. Pension expense, in accordance with the pension accounting requirements of SFAS No. 87, was $3.5 million in 2008 compared with $4.0 million in 2007. Pension expense allocated to contracts pursuant to CAS was $1.9 million in 2008, compared with $1.7 million for 2007.


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2008 compared with 2007
 
Our Engineered Systems segment sales were $361.2 million in 2008, compared with sales of $301.7 million in 2007, an increase of 19.7%. Operating profit was $35.0 million in 2008, compared with $26.2 million in 2007, an increase of 33.6%.
 
Sales for 2008, compared with 2007, reflected revenue growth in aerospace and defense programs and higher environmental sales. The revenue growth of $51.1 million in aerospace and defense programs primarily reflected revenue growth in certain manufacturing programs including gas centrifuge service modules for nuclear power applications, as well as other aerospace programs and specialized engineering and project


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support for NASA. The revenue growth in environmental programs reflected engineering support for the gas centrifuge service modules program. Operating profit for 2008 reflected the impact of higher revenue and higher margins in aerospace programs and certain manufacturing programs, increased award fees and improved overhead rates. Segment operating profit also included pension expense under SFAS No. 87 of $5.0 million in 2008 compared with $6.4 million of pension expense in 2007. Pension expense allocated to contracts pursuant to CAS was $7.7 million in 2008 compared with $8.1 million in 2007.
 
2008 compared with 2007
 
Our Aerospace Engines and Components segment sales were $171.0 million in 2008, compared with sales of $180.7 million in 2007, a decrease of 5.4%. The 2008 operating loss was $9.7 million, compared with operating income of $19.2 million in 2007. We currently expect sales in this segment to decrease further in 2009.
 
Sales for 2008, compared with 2007, reflected reduced OEM piston engine and spare parts sales. The decrease in operating profit in 2008, compared with 2007, reflected an estimated charge of $18.0 million for product recall and replacement costs, the impact of lower sales and higher defense and settlement fees. The charge was required to replace certain aircraft piston engine cylinders produced since November 2007. The replacement program should be completed by the end of 2009. Operating profit in 2007 included the receipt of a litigation settlement of $1.4 million, net of expenses and the $1.7 million writedown of accounts receivable related to a customer bankruptcy. Segment operating profit also included pension expense, under SFAS No. 87 of $0.6 million in 2008 compared with $0.7 million for 2007. Segment operating profit for 2008 also reflected higher LIFO expense of $0.5 million.


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Table of Contents

2008 compared with 2007
 
Our Energy and Power Systems segment sales were $84.2 million in 2008, compared with sales of $68.3 million in 2007, an increase of 23.3%. Operating income was $10.2 million in 2008, compared with $6.3 million in 2007, an increase of 61.9%.
 
The increase in sales for 2008, compared with 2007, primarily resulted from higher government power systems sales and higher turbine engine sales, primarily due to Joint Air-to-Surface Standoff Missile (“JASSM”) engines. Commercial hydrogen generator sales increased slightly. Operating profit reflected the impact of higher sales, higher margins in the turbine engine business and the reversal of $1.3 million for environmental reserves no longer needed due to a final settlement.
 
2008
compared with 2007



 



Our Electronics and Communications segment sales were
$1,276.6 million in 2008, compared with sales of
$1,071.6 million in 2007, an increase of 19.1%. Operating
profit was $183.0 million in 2008, compared with
$143.2 million in 2007, an increase of 27.8%.


 



The 2008 sales growth of $205.0 million resulted primarily
from revenue growth in electronic instruments and defense
electronics, partially offset by lower sales of other commercial
electronics. The revenue growth of $141.9 million in
electronic instruments was driven by organic sales growth and
the acquisitions, including DGO, Impulse, Storm, TSS, Webb and
Cormon. Organic sales growth in electronic instruments reflected
increased sales of geophysical sensors for the energy
exploration market, other marine instruments and environmental
instruments for the air and water monitoring markets. We
currently expect a contraction in the second half of 2009 in
sales of marine instruments that serve the offshore exploration
market. The incremental increase in revenue from acquisitions in
electronic instruments for 2008, compared with 2007, was
$98.0 million. The revenue growth of $66.9 million in
defense electronics was driven by organic sales growth and
acquisitions, including Storm, Judson and the Defense
Electronics business of Filtronic PLC. The increase in revenue
from acquisitions in defense electronics products for 2008,
compared with 2007, was $44.9 million. Organic growth of
defense electronics for 2008 was primarily due to higher sales
of defense manufacturing services, as well as increased sales of
imaging sensors and subsystems and greater sales of microwave
components and subsystems. Revenue in avionics and other
commercial electronics decreased by $3.8 million and
primarily reflected decreased sales of medical electronic
manufacturing services. In 2008, for the Electronics and
Communications segment, revenues increased by
$142.9 million and operating profit, including synergies,
increased by $17.8 million due to the incremental impact of
acquisitions that we acquired since 2006. Segment operating
profit was favorably impacted by the increase in revenue and
sales mix. Segment operating profit was negatively impacted by
$3.5 million of stock option compensation expense in 2008
compared with $3.1 million of stock option compensation
expense in 2007. Fiscal year 2008 also reflected lower LIFO
expense of $1.0 million compared with fiscal year 2007.
Pension expense, in accordance with the pension accounting
requirements of SFAS No. 87, was $3.5 million in
2008 compared with $4.0 million in 2007. Pension expense
allocated to contracts pursuant to CAS was $1.9 million in
2008, compared with $1.7 million for 2007.





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Table of Contents







2008
compared with 2007



 



Our Engineered Systems segment sales were $361.2 million in
2008, compared with sales of $301.7 million in 2007, an
increase of 19.7%. Operating profit was $35.0 million in
2008, compared with $26.2 million in 2007, an increase of
33.6%.


 



Sales for 2008, compared with 2007, reflected revenue growth in
aerospace and defense programs and higher environmental sales.
The revenue growth of $51.1 million in aerospace and
defense programs primarily reflected revenue growth in certain
manufacturing programs including gas centrifuge service modules
for nuclear power applications, as well as other aerospace
programs and specialized engineering and project





44





Table of Contents






support for NASA. The revenue growth in environmental programs
reflected engineering support for the gas centrifuge service
modules program. Operating profit for 2008 reflected the impact
of higher revenue and higher margins in aerospace programs and
certain manufacturing programs, increased award fees and
improved overhead rates. Segment operating profit also included
pension expense under SFAS No. 87 of $5.0 million
in 2008 compared with $6.4 million of pension expense in
2007. Pension expense allocated to contracts pursuant to CAS was
$7.7 million in 2008 compared with $8.1 million in
2007.


 




2008
compared with 2007



 



Our Aerospace Engines and Components segment sales were
$171.0 million in 2008, compared with sales of
$180.7 million in 2007, a decrease of 5.4%. The 2008
operating loss was $9.7 million, compared with operating
income of $19.2 million in 2007. We currently expect sales
in this segment to decrease further in 2009.


 



Sales for 2008, compared with 2007, reflected reduced OEM piston
engine and spare parts sales. The decrease in operating profit
in 2008, compared with 2007, reflected an estimated charge of
$18.0 million for product recall and replacement costs, the
impact of lower sales and higher defense and settlement fees.
The charge was required to replace certain aircraft piston
engine cylinders produced since November 2007. The replacement
program should be completed by the end of 2009. Operating profit
in 2007 included the receipt of a litigation settlement of
$1.4 million, net of expenses and the $1.7 million
writedown of accounts receivable related to a customer
bankruptcy. Segment operating profit also included pension
expense, under SFAS No. 87 of $0.6 million in
2008 compared with $0.7 million for 2007. Segment operating
profit for 2008 also reflected higher LIFO expense of
$0.5 million.





45





Table of Contents







2008
compared with 2007



 



Our Energy and Power Systems segment sales were
$84.2 million in 2008, compared with sales of
$68.3 million in 2007, an increase of 23.3%. Operating
income was $10.2 million in 2008, compared with
$6.3 million in 2007, an increase of 61.9%.


 



The increase in sales for 2008, compared with 2007, primarily
resulted from higher government power systems sales and higher
turbine engine sales, primarily due to Joint Air-to-Surface
Standoff Missile (“JASSM”) engines. Commercial
hydrogen generator sales increased slightly. Operating profit
reflected the impact of higher sales, higher margins in the
turbine engine business and the reversal of $1.3 million
for environmental reserves no longer needed due to a final
settlement.


 




EXCERPTS ON THIS PAGE:

10-K (8 sections)
Feb 26, 2009
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