During the second quarter of 2024, Teledyne acquired Adimec Holding B.V. for $88.1 million and Valeport Holdings 2019 Limited for $35.5 million. These acquisitions are expected to contribute to future growth.

The company had previously assumed no full year sales growth in industrial automation markets as well as electronic test and measurement markets. However, those markets weakened more than planned in the first half of the year.

Sales of Marine Instrumentation increased $20.4 million due to the ongoing recovery in offshore energy markets as well as stronger defense market sales.

SG&A expense decreased due to lower sales as well as lower research and development expense, with the lower research and development expense primarily related to continued FLIR integration-related cost-reduction efforts implemented in the second half of 2023.

At June 30, 2024, the Company was in compliance with all financial and operating covenants under its bank credit agreements.

Net cash provided by operating activities was $609.7 million for the first six months of 2024 compared with $393.5 million, driven primarily by stronger working capital conversion in the first six months of 2024, including stronger account receivable collection and higher contract liabilities from customer advances.

The company expects cost inflation impacts and supply chain constraints to continue during the remainder of 2024, although to a lesser extent compared to recent years.

It is too early to determine the full extent of the impact this conflict could have on our business and our operations, including the impact to our suppliers from these regions, and our assessment of the potential impacts is ongoing.

Although no impairment existed for the FLIR reporting unit as of the prior year assessment date, a non-cash impairment of goodwill could result from a number of circumstances, including different assumptions used in determining the fair value of the reporting unit, changes to customer spending priorities, or a sharp increase in interest rates without a corresponding increase in future net sales.

Digital Imaging segment experiences lower sales due to lower sales of industrial automation imaging systems, X-ray products and commercial infrared imaging systems.

Instrumentation segment sees growth in Marine Instrumentation due to ongoing recovery in offshore energy markets as well as stronger defense market sales.

Aerospace and Defense Electronics segment experiences increased sales due to a $4.4 million increase in defense electronics and a $4.0 million increase in aerospace electronics.

Cost of sales as a percentage of net sales increased slightly for the first six months of 2024 to 57.0% from 56.9%.

SG&A expense decreased due to lower sales as well as lower research and development expense, with the lower research and development expense primarily related to continued FLIR integration-related cost-reduction efforts implemented in the second half of 2023.

Net cash provided by operating activities was $609.7 million for the first six months of 2024 compared with $393.5 million, driven primarily by stronger working capital conversion in the first six months of 2024, including stronger account receivable collection and higher contract liabilities from customer advances.

The company continues to invest in research and development, although SG&A expenses have decreased due to FLIR integration-related cost reduction efforts.

The acquisitions of Adimec and Valeport are aimed at expanding the company's technological capabilities in digital imaging and underwater sensor technologies, respectively.

The company seeks to create new products to grow its company and expand its addressable markets using complementary technology across its businesses and through targeted research and development.

In April 2024, the Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $1.25 billion of its common stock.

In the first half of 2024, the company made a $450 million debt maturity payment on the Senior notes due April 2024.

The company currently plans to invest approximately $100 million for capital expenditures in 2024.

The company is focused on its ability to achieve emission reduction targets and decrease its carbon footprint.

At June 30, 2024, the Company's reserves for environmental remediation obligations totaled $6.8 million, of which $3.1 million is included in current accrued liabilities.

The Company is continuing to monitor the implementation of Pillar Two by individual countries and the potential effects of Pillar Two on our business.

The company had previously assumed no full year sales growth in industrial automation markets as well as electronic test and measurement markets. However, those markets weakened more than planned in the first half of the year.

Sales of Marine Instrumentation increased $20.4 million due to the ongoing recovery in offshore energy markets as well as stronger defense market sales.

It is too early to determine the full extent of the impact this conflict could have on our business and our operations, including the impact to our suppliers from these regions, and our assessment of the potential impacts is ongoing.