Throughout 2022, we found ourselves, like many other companies, challenged by the external forces of inflation, a strong dollar and supply chain constraints. Nevertheless, Teledyne continued its long history of navigating difficult market environments, and we ultimately delivered record financial results.
Record sales of $5,458.6 million increased 18.3% compared with last year. Furthermore, record full year GAAP diluted earnings per share of $16.53 and non-GAAP diluted earnings per share of $18.19 increased 64.5% and 7.9%, respectively. Full year 2022 GAAP and non-GAAP operating margins were also records.
Imaging Milestones
In 2022, we continued to demonstrate our leadership in imaging sensor technology. Teledyne infrared detectors are used in three of the four instruments of the James Webb Space Telescope (JWST), accounting for 95% of all imaging pixels. The JWST was launched on December 25, 2021, and after commissioning, the first images were released to the public in July 2022. The JWST has imaged galaxies beyond the grasp of other telescopes and yielded unprecedented views of star formation and the early universe.
Looking Earthward, Teledyne infrared detectors are utilized in the latest Earth science missions and space-based defense programs that protect our nation and allies. For example, Teledyne’s imaging sensors support critical defense missions that detect and track conventional and advanced missile threats, including hypersonic missile systems.
Recent Acquisitions and Safety, Health and Security
For years, Teledyne Marine Instrumentation systems and Digital Imaging software have helped hydrographic agencies around the world provide accurate nautical charts for safe navigation of the world’s waterways and oceans. Through the January 2023 acquisition of ChartWorld, Teledyne now provides these electronic navigation charts and other value-added software information services directly to vessel pilots, owners, and operators.
In October 2022, Teledyne acquired ETM, a multi-decade customer of Teledyne’s specialty electronic components used in healthcare, security, and defense applications. ETM accelerated Teledyne’s ability to provide greater content and subsystem-level solutions to our existing cancer radiotherapy customers. In addition, Teledyne now supplies higher-level assemblies used in defense radar and electronic countermeasures applications, as well as for X-ray cargo security screening at ports and borders.
Also in 2022, Teledyne acquired a majority interest in NL Acoustics, whose easy-to-use products detect leaks of gases—such as air or hydrogen—with no infrared signature, as well as partial discharge events at electric utilities. Collectively, Teledyne and NL Acoustics now provide a wide range of condition monitoring and safety solutions, including acoustic imaging systems, optical gas leak detection cameras, and hazardous gas and flame detection instrumentation.
2023 and Beyond
While it may be difficult to predict outcomes this early in 2023, we are reasonably confident of growth in our longer-cycle businesses serving defense, medical, energy, and aerospace markets. In our shorter-cycle instrumentation and imaging businesses, thus far in 2023, orders have generally remained stable while supply chain constraints have begun to ease.
Given the strength of our balance sheet and balanced business portfolio, I am optimistic that Teledyne will continue its successful path in 2023: investing in our businesses to drive organic growth, being vigilant on costs, and continuing to acquire and integrate complementary businesses.
We sincerely thank our employees for delivering our results, our Board of Directors for its guidance, and our stockholders for their loyalty and support.
Respectfully,
Robert Mehrabian
Chairman, President and Chief Executive Officer
February 24, 2023
Read the original letter here.
