Teledyne Lays Off 300 Workers, Expects More Cuts

Teledyne Technologies Inc., which makes electronic relays used to test computer chips, dismissed 300 employees, or 5% of its work force, to cut costs Wednesday. It plans to eliminate more jobs and said second-quarter and full-year profit will be less than analysts’ estimates.

The move is expected to save about $13 million a year, the Los Angeles-based company said in a prepared statement. Teledyne will take a second-quarter pretax charge of $5 million to $10 million to cover the cost of the actions.

Teledyne is reacting to declines throughout its industry. Intel Corp., the No. 1 chip maker, said first-quarter sales dropped 16% and announced plans to cut 5,000 jobs as the slowing economy hurt demand for personal computers and networking gear.

Teledyne said second-quarter profit will be 16 cents to 18 cents a share, trailing the 20-cent average estimate of three analysts polled by First Call/Thomson Financial. Full-year profit will be 70 cents to 80 cents a share, the company said. It’s expected to earn 91 cents, according to First Call.

Teledyne said first-quarter profit from continuing operations fell 53% to $4.8 million, or 15 cents a share, from $10.3 million, or 38 cents, in the year-earlier period. The company was expected to earn 14 cents, according to First Call.

In the year-ago period, Teledyne had a loss from discontinued operations of $100,000, making net income $10.2 million.

The company said the quarter was hurt by a 26% decline in sales at its aerospace-engines and components business, as well as less demand from semiconductor and telecommunications customers.

Teledyne shares fell 16 cents to close at $13.14 on the New York Stock Exchange. They have lost 44% this year.