PEMBROKE, Bermuda, July 31 /PRNewswire-FirstCall/ -- ($ millions,
except per-share amounts) Q3 2008 Q3 2007 % Change Revenue $5,215
$4,702 11% Income from Continuing Operations $199 ($3,054) Diluted
EPS from Continuing Operations $0.41 ($6.17) Special Items Per
Share After Tax $0.47 $6.68 -- Income from Continuing Operations
Before Special Items $429 $254 69% Diluted EPS from Continuing
Operations Before Special Items $0.88 $0.51 73% -- Revenue
increased 11% with organic revenue growth of 6.2% -- Company
achieved operating margin of 11.1% and operating margin before
special items of 12.1% -- Company raises guidance for full year
2008 to a range of $2.97 to $2.99 for diluted EPS from continuing
operations before special items -- Company continues to make
progress in refining its portfolio -- Company completed $1 billion
share repurchase program; new $1 billion program recently announced
Tyco International Ltd. (NYSE:TYC)(BSX:TYC) today reported $0.41 in
diluted earnings per share (EPS) from continuing operations for the
fiscal third quarter of 2008 and diluted EPS from continuing
operations before special items of $0.88. Diluted EPS from
continuing operations was negatively impacted by special items of
$0.47 per share primarily for separation-related items and
restructuring activities. Diluted EPS from continuing operations
before special items increased 73%. Revenue increased 11% versus
the prior year to $5.2 billion, with organic revenue growth of
6.2%. The company's operating margin was 11.1% and the operating
margin before special items was 12.1%. Tyco Chairman and Chief
Executive Officer Ed Breen said, "This was a solid quarter with
improved revenue growth and strong operating margin performance
across Tyco. Based on the strength of these results and our outlook
for the fourth quarter, we are raising our full year earnings
guidance. We continued to make progress in refining our portfolio,
including acquisitions that will strengthen our product and service
offerings. We also announced a new $1 billion share repurchase
program as part of our strategy to return a portion of our excess
cash to shareholders. These actions, combined with the progress we
are making on a number of our strategic objectives, position Tyco
for a strong finish to the year." The company now expects full-year
fiscal 2008 diluted earnings per share from continuing operations
before special items to be in the range of $2.97 to $2.99 per share
from the previous range of $2.65 to $2.75. As part of its portfolio
refinement activities, Tyco completed the acquisition of
FirstService Security to strengthen ADT's systems integration
capabilities in North America. The company also announced the
acquisition of two Sensormatic franchises and agreed to purchase
IntelliVid, a leading developer of advanced video analytics. Tyco
also is making progress in divesting certain non-core businesses
and to date in fiscal 2008 has received $1 billion in proceeds from
divestitures including the majority of its Infrastructure Services
Business, Ancon Building Products and Nippon Dry Chemical. Organic
revenue growth, free cash flow, operating income before special
items, operating margin before special items, income from
continuing operations before special items and diluted EPS from
continuing operations before special items are all non-GAAP
financial measures and are described below. For a reconciliation of
these non-GAAP measures, see the attached tables. Additional
schedules can be found at http://www.tyco.com/ on the Investor
Relations portion of Tyco's website. SEGMENT RESULTS The financial
results presented in the tables below are in accordance with GAAP
unless otherwise indicated. All dollar amounts are pre-tax and
stated in millions. All comparisons are to the fiscal third quarter
of 2007 unless otherwise indicated. ADT Worldwide Q3 2008 Q3 2007 %
Change Revenue $2,000 $1,909 5% Operating Income $239 $205 17%
Operating Margin 12.0% 10.7% Special Items $31 $57 Operating Income
Before Special Items $270 $262 3% Operating Margin Before Special
Items 13.5% 13.7% Revenue increased 5% with organic revenue growth
of 2%. Recurring revenue grew 5% organically and improved across
all regions. Systems installation and service revenue declined 1%
organically mostly due to weakness in the retailer end market. This
was partially offset by strong double-digit organic growth in other
international markets. Operating income was $239 million and the
operating margin was 12.0%. Special items consisted of $31 million
of restructuring charges. Operating income before special items was
$270 million and the operating margin before special items was
13.5%. Flow Control Q3 2008 Q3 2007 % Change Revenue $1,132 $982
15% Operating Income $152 $124 23% Operating Margin 13.4% 12.6%
Special Items $3 $2 Operating Income Before Special Items $155 $126
23% Operating Margin Before Special Items 13.7% 12.8% Revenue
increased 15% with organic revenue growth of 5.3% driven by
continued strong growth in the Valves business which grew 10%
organically and the Thermal Controls business which grew 15%
organically. In the Water business, organic revenue declined 7%,
primarily due to reduced water pipeline project activity in
Australia compared to the year ago quarter. Operating income was
$152 million and the operating margin was 13.4%. Operating income
before special items increased 23% to $155 million and the
operating margin before special items was 13.7%. The increase in
the operating income and the operating margin before special items
was due to higher revenue and improved productivity. Fire
Protection Services Q3 2008 Q3 2007 % Change Revenue $919 $848 8%
Operating Income $97 $58 67% Operating Margin 10.6% 6.8% Special
Items -- $13 Operating Income Before Special Items $97 $71 37%
Operating Margin Before Special Items 10.6% 8.4% Revenue increased
8% with organic revenue growth of 4%. The North American
SimplexGrinnell business grew 8% organically while the
international fire businesses declined slightly due to the planned
exit of certain non-core activities in Latin America and Asia.
Operating income was $97 million and the operating margin was
10.6%. The operating margin before special items increased 220
basis points mostly due to solid margin improvement in
SimplexGrinnell related to higher revenue and better productivity.
The international fire businesses also contributed to the operating
margin improvement due to better productivity and increased service
mix. Electrical and Metal Products Q3 2008 Q3 2007 % Change Revenue
$652 $519 26% Operating Income $141 $47 200% Operating Margin 21.6%
9.1% Special Items $5 -- Operating Income Before Special Items $146
$47 211% Operating Margin Before Special Items 22.4% 9.1% Revenue
increased 26% with organic revenue growth of 23%. The increase in
revenue was mostly driven by better pricing for steel tubular
products. Operating income was $141 million and the operating
margin was 21.6%. Operating income before special items of $146
million improved primarily due to better metal spreads and
continued improvement in manufacturing efficiencies. Safety
Products Q3 2008 Q3 2007 % Change Revenue $511 $442 16% Operating
Income $79 $72 10% Operating Margin 15.5% 16.3% Special Items $12
$8 Operating Income Before Special Items $91 $80 14% Operating
Margin Before Special Items 17.8% 18.1% Revenue increased 16% with
organic revenue growth of 11% driven primarily by strength in the
fire suppression and life safety businesses. Operating income was
$79 million and the operating margin was 15.5%. Operating income
before special items increased 14% to $91 million and the operating
margin before special items was 17.8%. The improvement in operating
income before special items was primarily due to higher volume and
improved productivity offset by increased investment in R&D and
sales and marketing. OTHER ITEMS -- Cash from operating activities
was $712 million and free cash flow was $446 million. This included
cash payments of $81 million primarily for restructuring and legacy
litigation payments. -- The $330 million of pre-tax charges for
special items ($0.47 per share) consisted primarily of $275 million
for separation-related activities including the early retirement of
debt and $53 million for restructuring activities. -- Corporate
expense was $131 million in the quarter and included a net charge
of $4 million for special items. -- Net interest expense of $75
million included $17 million of separation- related expenses. --
The GAAP tax rate for the quarter was 18.4% and was positively
impacted by 6.8 percentage points related to the tax treatment of
special items. -- The company announced a new $1 billion share
repurchase program on July 10, 2008. A previous $1 billion program
announced in September 2007 concluded earlier this month. The
company repurchased 24.3 million shares under that program,
representing approximately 5% of total shares outstanding. --
Diluted EPS from discontinued operations of $0.57 per share in the
third quarter consisted primarily of gains from the sale of a
Brazilian subsidiary of the Infrastructure Services Business and
Ancon Building Products. ABOUT TYCO INTERNATIONAL Tyco
International Ltd. (NYSE:TYC) is a diversified, global company that
provides vital products and services to customers in more than 60
countries. Tyco is a leading provider of security products and
services, fire protection and detection products and services,
valves and controls, and other industrial products. Tyco had 2007
annual revenues of more than $18 billion and 118,000 employees
worldwide. More information on Tyco can be found at
http://www.tyco.com/. CONFERENCE CALL AND WEBCAST Management will
discuss the company's third quarter results and outlook for the
fiscal fourth quarter during a conference call and webcast for
investors today beginning at 8:30 a.m. ET. Today's conference call
can be accessed in the following ways: -- At Tyco's website:
http://investors.tyco.com/. -- By telephone: For both "listen-only"
participants and those participants who wish to take part in the
question-and-answer portion of the call, the telephone dial-in
number in the United States is (888) 455-5685. The telephone
dial-in number for participants outside the United States is (773)
799-3896. The passcode for the call is TYCO. -- An audio replay of
the conference call will be available beginning at 11:00 a.m. on
July 31, 2008 and ending at 10:59 p.m. on August 7, 2008. The
dial-in number for participants in the United States is (800)
570-8795. For participants outside the United States, the replay
dial-in number is (402) 220-2264. NON-GAAP MEASURES "Organic
revenue growth," "free cash flow" (FCF), "operating income before
special items", "earnings per share (EPS) from continuing
operations before special items" and "operating margin before
special items" are non-GAAP measures and should not be considered
replacements for GAAP results. Organic revenue growth is a useful
measure used by the company to measure the underlying results and
trends in the business. The difference between reported net revenue
growth (the most comparable GAAP measure) and organic revenue
growth (the non-GAAP measure) consists of the impact from foreign
currency, acquisitions and divestitures, and other changes that do
not reflect the underlying results and trends (for example, revenue
reclassifications and changes to the fiscal year). Organic revenue
growth is a useful measure of the company's performance because it
excludes items that: i) are not completely under management's
control, such as the impact of foreign currency exchange; or ii) do
not reflect the underlying growth of the company, such as
acquisition and divestiture activity. It may be used as a component
of the company's compensation programs. The limitation of this
measure is that it excludes items that have an impact on the
company's revenue. This limitation is best addressed by using
organic revenue growth in combination with the GAAP numbers. See
the accompanying tables to this press release for the
reconciliation presenting the components of organic revenue growth.
FCF is a useful measure of the company's cash which is free from
any significant existing obligation. The difference between cash
flows from operating activities (the most comparable GAAP measure)
and FCF (the non-GAAP measure) consists mainly of significant cash
outflows that the company believes are useful to identify. FCF
permits management and investors to gain insight into the number
that management employs to measure cash that is free from any
significant existing obligation. It, or a measure that is based on
it, may be used as a significant component in the company's
incentive compensation plans. The difference reflects the impact
from: -- the sale of accounts receivable programs, -- net capital
expenditures, -- accounts purchased from ADT dealer network, --
cash paid for purchase accounting and holdback liabilities, and --
voluntary pension contributions. The impact from the sale of
accounts receivable programs and voluntary pension contributions
are added or subtracted from the GAAP measure because this activity
is driven by economic financing decisions rather than operating
activity. Capital expenditures and the ADT dealer program are
subtracted because they represent long-term commitments. Cash paid
for purchase accounting and holdback liabilities is subtracted from
Cash Flow from Operating Activities because these cash outflows are
not available for general corporate uses. The limitation associated
with using FCF is that it subtracts cash items that are ultimately
within management's and the Board of Directors' discretion to
direct and therefore may imply that there is less or more cash that
is available for the company's programs than the most comparable
GAAP measure. This limitation is best addressed by using FCF in
combination with the GAAP cash flow numbers. FCF as presented
herein may not be comparable to similarly titled measures reported
by other companies. The measure should be used in conjunction with
other GAAP financial measures. Investors are urged to read the
company's financial statements as filed with the Securities and
Exchange Commission, as well as the accompanying tables to this
press release that show all the elements of the GAAP measures of
Cash Flows from Operating Activities, Cash Flows from Investing
Activities, Cash Flows from Financing Activities and a
reconciliation of the company's total cash and cash equivalents for
the period. See the accompanying tables to this press release for a
cash flow statement presented in accordance with GAAP and a
reconciliation presenting the components of FCF. The company has
presented its operating income from continuing operations,
operating income and operating margin before special items and EPS
from continuing operations before special items, and forecast its
EPS from continuing operations before special items. Special Items
include charges and gains related to divestitures, acquisitions,
restructurings (including transaction costs related to the
separations of Tyco Electronics and Tyco Healthcare into separate
public companies), and other income or charges that may mask the
underlying operating results and/or business trends of the company
or business segment, as applicable. The company utilizes income
from continuing operations, EPS and operating income and margin, in
each case before special items to assess overall operating
performance, segment level core operating performance and to
provide insight to management in evaluating overall and segment
operating plan execution and underlying market conditions. They may
be used as significant components in the company's incentive
compensation plans. Operating income, operating margin, income from
continuing operations before special items and EPS before special
items are useful measures for investors because they permit more
meaningful comparisons of the company's underlying operating
results and business trends between periods. EPS before special
items does not reflect any additional adjustments that are not
reflected in income from continuing operations before special
items. The difference between income from continuing operations
before special items and operating income and margin before special
items versus income from continuing operations, operating income
and operating margin (the most comparable GAAP measures) consists
of the impact of charges and gains related to divestitures,
acquisitions, restructurings (including transaction costs related
to the separations of Tyco Electronics and Tyco Healthcare into
separate public companies), and other income or charges that may
mask the underlying operating results and/or business trends. The
limitation of these measures is that they exclude the impact (which
may be material) of items that increase or decrease the company's
reported operating income from continuing operations, EPS and
operating income and margin. This limitation is best addressed by
using operating income and operating margin before special items in
combination with the most comparable GAAP measures in order to
better understand the amounts, character and impact of any increase
or decrease on reported results. The company presents its EPS
forecast before special items to give investors a perspective on
the underlying business results. Because the company often cannot
predict the amount and timing of unusual or special items and
associated charges or gains that may be recorded in the company's
financial statements, it does not present forecasts that include
the impact of those items. See the accompanying tables to this
press release for the reconciliation presenting the components of
operating income before special items. FORWARD-LOOKING STATEMENTS
This release may contain certain "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995. These statements are based on
management's current expectations and are subject to risks,
uncertainty and changes in circumstances, which may cause actual
results, performance or achievements to differ materially from
anticipated results, performance or achievements. All statements
contained herein that are not clearly historical in nature are
forward-looking and the words "anticipate," "believe," "expect,"
"estimate," "plan," and similar expressions are generally intended
to identify forward-looking statements. The forward-looking
statements in this release include statements addressing the
company's future financial condition and operating results, as well
as its portfolio refinement activities. Economic, business,
competitive and/or regulatory factors affecting Tyco's businesses
are examples of factors, among others, that could cause actual
results to differ materially from those described in the
forward-looking statements. Tyco is under no obligation to (and
expressly disclaims any such obligation to) update or alter its
forward- looking statements whether as a result of new information,
future events or otherwise. More detailed information about these
and other factors is set forth in Tyco's Annual Report on Form 10-K
for the fiscal year ended Sept. 28, 2007 and Quarterly Report on
Form 10-Q for the quarterly period ended March 28, 2008. TYCO
INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in
millions, except per share data) (Unaudited) Quarter Ended Nine
Months Ended June 27, June 29, June 27, June 29, 2008 2007 2008
2007 Net revenue $5,215 $4,702 $14,915 $13,525 Cost of sales 3,364
3,104 9,706 8,943 Selling, general and administrative expenses
1,234 1,184 3,605 3,558 Class action settlement, net (7) 2,875 (7)
2,875 Separation costs - 28 4 85 Goodwill Impairment - 46 - 46
Restructuring, asset impairment and divestiture charges, net 47 46
95 147 Operating income (loss) 577 (2,581) 1,512 (2,129) Interest
income 16 29 99 54 Interest expense (91) (78) (323) (208) Other
expense, net (257) (259) (205) (257) Income (loss) from continuing
operations before income taxes and minority interest 245 (2,889)
1,083 (2,540) Income taxes (45) (163) (249) (190) Minority interest
(1) (2) (3) (3) Income (loss) from continuing operations 199
(3,054) 831 (2,733) Income (loss) from discontinued operations, net
of income taxes 277 (497) 288 810 Net income (loss) $476 $(3,551)
$1,119 $(1,923) Basic earnings per common share: Income (loss) from
continuing operations $0.41 $(6.17) $1.71 $(5.53) Income (loss)
from discontinued operations 0.58 (1.01) 0.59 1.64 Net income
(loss) $0.99 $(7.18) $2.30 $(3.89) Diluted earnings per common
share: Income (loss) from continuing operations $0.41 $(6.17) $1.70
$(5.53) Income (loss) from discontinued operations 0.57 (1.01) 0.58
1.64 Net income (loss) $0.98 $(7.18) $2.28 $(3.89) Weighted-average
number of shares outstanding: Basic 482 495 487 495 Diluted 486 495
491 495 NOTE: These financial statements should be read in
conjunction with the Consolidated Financial Statements and
accompanying notes contained in the Company's Annual Report on Form
10-K for the fiscal year ended September 28, 2007 and Quarterly
Report on Form 10-Q for the quarterly period ended March 28, 2008.
TYCO INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions)
(Unaudited) Quarter Ended June 27, June 29, 2008 2007 NET REVENUE
ADT Worldwide $2,000 $1,909 Flow Control 1,132 982 Fire Protection
Services 919 848 Electrical and Metal Products 652 519 Safety
Products 511 442 Corporate and Other 1 2 Total Net Revenue $5,215
$4,702 OPERATING INCOME AND MARGIN ADT Worldwide $239 12.0% $205
10.7% Flow Control 152 13.4% 124 12.6% Fire Protection Services 97
10.6% 58 6.8% Electrical and Metal Products 141 21.6% 47 9.1%
Safety Products 79 15.5% 72 16.3% Corporate and Other (131) N/M
(3,087) N/M Operating Income (Loss) and Margin $577 11.1% $(2,581)
-54.9% TYCO INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions)
(Unaudited) Nine Months Ended June 27, June 29, 2008 2007 NET
REVENUE ADT Worldwide $5,965 $5,659 Flow Control 3,230 2,695 Fire
Protection Services 2,609 2,455 Electrical and Metal Products 1,681
1,441 Safety Products 1,427 1,272 Corporate and Other 3 3 Total Net
Revenue $14,915 $13,525 OPERATING INCOME AND MARGIN ADT Worldwide
$710 11.9% $601 10.6% Flow Control 466 14.4% 334 12.4% Fire
Protection Services 247 9.5% 178 7.3% Electrical and Metal Products
254 15.1% 114 7.9% Safety Products 219 15.3% 209 16.4% Corporate
and Other (384) N/M (3,565) N/M Operating Income (Loss) and Margin
$1,512 10.1% $(2,129) -15.7% TYCO INTERNATIONAL LTD. CONDENSED
CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) June 27,
March 28, September 28, 2008 2008 2007 Current Assets: Cash and
cash equivalents $1,342 $1,074 $1,894 Accounts receivable, net
3,207 3,092 2,900 Inventories 1,996 1,995 1,783 Class action
settlement escrow - - 2,992 Other current assets 1,692 1,744 1,615
Assets held for sale 1,112 1,268 1,370 Total current assets 9,349
9,173 12,554 Property, plant and equipment, net 3,617 3,597 3,526
Goodwill 11,763 11,801 11,514 Intangible assets, net 2,611 2,596
2,653 Other assets 2,729 2,707 2,568 Total Assets $30,069 $29,874
$32,815 Current Liabilities: Short-term debt and current maturities
of long-term debt $539 $525 $380 Accounts payable 1,555 1,490 1,637
Class action settlement liability - - 2,992 Accrued and other
current liabilities 3,256 3,299 3,452 Liabilities held for sale 586
591 666 Total current liabilities 5,936 5,905 9,127 Long-term debt
4,070 3,977 4,082 Other liabilities 3,948 3,963 3,915 Total
Liabilities 13,954 13,845 17,124 Minority interest 58 55 67
Shareholders' equity 16,057 15,974 15,624 Total Liabilities and
Shareholders' Equity $30,069 $29,874 $32,815 NOTE: These financial
statements should be read in conjunction with the Consolidated
Financial Statements and accompanying notes contained in the
Company's Annual Report on Form 10-K for the fiscal year ended
September 28, 2007 and Quarterly Report on Form 10-Q for the
quarterly period ended March 28, 2008. TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited)
Quarter Ended Nine Months Ended June 27, June 29, June 27, June 29,
2008 2007 2008 2007 Cash Flows from Operating Activities: Net
income $476 $(3,551) $1,119 $(1,923) (Income) loss from
discontinued operations (277) 497 (288) (810) Income from
continuing operations 199 (3,054) 831 (2,733) Adjustments to
reconcile net cash provided by operating activities: Depreciation
and amortization 288 275 854 867 Non-cash compensation expense 21
40 78 121 Deferred income taxes (10) 19 (115) (74) Provision for
losses on accounts receivable and inventory 38 18 99 62 Loss on the
retirement of debt 258 259 258 259 Goodwill impairment - 46 - 46
Other non-cash items 33 17 76 35 Changes in assets and liabilities,
net of the effects of acquisitions and divestitures: Accounts
receivable, net (135) (141) (243) (208) Inventories (24) 14 (173)
(266) Other current assets 33 (62) 9 101 Accounts payable 71 (32)
(135) (83) Accrued and other liabilities (33) (145) (357) (195)
Class action settlement liability - 2,972 (3,020) 2,972 Income
taxes, net (32) (198) (8) (230) Other 5 72 (62) 137 Net cash
provided by (used in) operating activities 712 100 (1,908) 811 Net
cash (used in) provided by discontinued operating activities (29)
793 (25) 2,490 Cash Flows from Investing Activities: Capital
expenditures (190) (172) (545) (471) Proceeds from disposal of
assets 4 4 14 14 Acquisition of businesses, net of cash acquired
(65) (10) (92) (26) Accounts purchased from ADT dealer network (82)
(97) (269) (273) Liquidation of rabbi trust investments - - - 271
Class action settlement escrow - (2,960) 2,960 (2,960) Other 25 (7)
15 37 Net cash (used in) provided by investing activities (308)
(3,242) 2,083 (3,408) Net cash provided by (used in) discontinued
investing activities 466 (287) 479 (792) Cash Flows from Financing
Activities: Net repayments of debt (240) (6,120) (200) (5,927)
Proceeds from exercise of share options 19 176 40 388 Dividends
paid (73) (396) (221) (791) Repurchase of common shares by
subsidiary (279) - (756) (668) Transfers from discontinued
operations 439 7,569 458 8,652 Other 2 8 (68) 21 Net cash (used in)
provided by financing activities (132) 1,237 (747) 1,675 Net cash
(used in) provided by discontinued financing activities (437) 62
(454) (1,016) Effect of currency translation on cash (4) 18 20 39
Effect of currency translation on cash of discontinued operations -
14 - 33 Net increase (decrease) in cash and cash equivalents 268
(1,305) (552) (168) Less: net increase in cash related to
discontinued operations - (582) - (715) Cash and cash equivalents
at beginning of period 1,074 3,197 1,894 2,193 Cash and cash
equivalents at end of period $1,342 $1,310 $1,342 $1,310
Reconciliation to "Free Cash Flow": Net cash provided by (used in)
operating activities $712 $100 $(1,908) $811 Decrease in sale of
accounts receivable 2 3 12 6 Capital expenditures, net (186) (168)
(531) (457) Accounts purchased from ADT dealer network (82) (97)
(269) (273) Purchase accounting and holdback liabilities - (1) (2)
(5) Voluntary pension contributions - 5 1 23 Free Cash Flow $446
$(158) $(2,697) $105 NOTE: Free cash flow is a non-GAAP measure.
See description of non-GAAP measures contained in this release.
TYCO INTERNATIONAL LTD. ORGANIC REVENUE GROWTH RECONCILIATION (in
millions) (Unaudited) Quarter Ended June 27, 2008 Foreign Net
Revenue Currency Other ADT Worldwide $2,000 4.8% $55 2.9% $1 0.1%
Flow Control 1,132 15.3% 93 9.5% 5 0.5% Fire Protection Services
919 8.4% 35 4.2% - 0.0% Electrical and Metal Products 652 25.6% 12
2.3% - 0.0% Safety Products 511 15.6% 22 5.0% (1) -0.3% Corporate
and Other 1 -50.0% - 0.0% - 0.0% Total Net Revenue $5,215 10.9%
$217 4.6% $5 0.1% Net Revenue for the Quarter Ended Organic Revenue
June 29, Growth 2007 ADT Worldwide $35 1.8% $1,909 Flow Control 52
5.3% 982 Fire Protection Services 36 4.2% 848 Electrical and Metal
Products 121 23.3% 519 Safety Products 48 10.9% 442 Corporate and
Other (1) -50.0% 2 Total Net Revenue $291 6.2% $4,702 Nine Months
Ended June 27, 2008 Foreign Net Revenue Currency Other ADT
Worldwide $5,965 5.4% $209 3.7% $(20) -0.4% Flow Control 3,230
19.9% 270 10.0% 3 0.2% Fire Protection Services 2,609 6.3% 114 4.7%
- 0.0% Electrical and Metal Products 1,681 16.7% 34 2.4% - 0.0%
Safety Products 1,427 12.2% 67 5.3% (2) -0.2% Corporate and Other 3
0.0% - 0.0% - 0.0% Total Net Revenue $14,915 10.3% $694 5.1% $(19)
-0.1% Net Revenue for the Nine Months Ended Organic Revenue June
29, Growth 2007 ADT Worldwide $117 2.1% $5,659 Flow Control 262
9.7% 2,695 Fire Protection Services 40 1.6% 2,455 Electrical and
Metal Products 206 14.3% 1,441 Safety Products 90 7.1% 1,272
Corporate and Other - 0.0% 3 Total Net Revenue $715 5.3% $13,525
NOTE: Organic revenue growth is a non-GAAP measure. See description
of non-GAAP measures contained in this release. TYCO INTERNATIONAL
LTD. EARNINGS PER SHARE SUMMARY (Unaudited) Year Quarter Ended
Ended Dec. 29, March 30, June 29, Sept. 28, Sept. 28, 2006 2007
2007 2007 2007 Diluted EPS from Continuing Operations $0.31 $0.33
($6.17) $0.42 ($5.10) Restructuring charges in cost of sales and
SG&A - 0.00 0.00 0.01 0.01 Class action settlement, net - -
5.83 (0.02) 5.81 Separation costs 0.07 0.10 0.69 0.08 0.93 Losses
on divestitures - 0.00 0.00 - (0.00) Restructuring and asset
impairment charges, net 0.10 0.02 0.07 0.07 0.26 Goodwill
impairment - - 0.09 - 0.09 Tax items - (0.12) - - (0.12) Voluntary
Replacement Program - - - 0.01 0.01 Reserve Adjustment - - - - -
Legacy Legal Settlement - - - - - Diluted EPS from Continuing
Operations Before Special Items $0.48 $0.33 $0.51 $0.57 $1.89 Year
to Quarter Ended Date Dec. 28, March 28, June 27, June 27, 2007
2008 2008 2008 Diluted EPS from Continuing Operations $0.72 $0.56
$0.41 $1.70 Restructuring charges in cost of sales and SG&A
0.01 0.01 0.01 0.02 Class action settlement, net - - (0.01) (0.01)
Separation costs (0.08) 0.01 0.39 0.32 Losses on divestitures - -
0.00 - Restructuring and asset impairment charges, net 0.02 0.06
0.06 0.14 Goodwill impairment - - - - Tax items 0.04 0.00 - 0.04
Voluntary Replacement Program - - - - Reserve Adjustment - (0.01) -
(0.01) Legacy Legal Settlement - 0.04 0.02 0.06 Diluted EPS from
Continuing Operations Before Special Items $0.71 $0.67 $0.88 $2.26
TYCO INTERNATIONAL LTD. FOR THE QUARTER ENDED JUNE 27, 2008 (in
millions, except per share data) (Unaudited) Fire Electrical Corp-
ADT Flow Protection & Metal Safety orate Worldwide Control
Services Products Products & Other Revenue Revenue $2,000
$1,132 $919 $652 $511 $1 $5,215 Fire Electrical Corp- Oper- ADT
Flow Protection & Metal Safety orate ating Worldwide Control
Services Products Products & Other Income Operating Income $239
$152 $97 $141 $79 ($131) $577 Restructuring charges in cost of
sales and SG&A 2 (1) 2 3 6 Class action settlement, net (7) (7)
Separation costs Losses on divestitures 1 1 Restructuring and asset
impairment charges, net 31 1 1 3 9 1 46 Goodwill impairment Tax
items Voluntary Replacement Program Reserve Adjustment Legacy Legal
Settlement 9 9 Operating Income Before Special Items $270 $155 $97
$146 $91 ($127) $632 Diluted Income EPS Interest Other from from
Expense, Expense, Income Minority Continuing Continuing net net
Taxes Interest Operations Operations Operating Income ($75) ($257)
($45) ($1) $199 $0.41 Restructuring charges in cost of sales and
SG&A (1) 5 0.01 Class action settlement, net (7) (0.01)
Separation costs 17 258 (83) 192 0.39 Losses on divestitures 1 0.00
Restructuring and asset impairment charges, net (16) 30 0.06
Goodwill impairment Tax items Voluntary Replacement Program Reserve
Adjustment Legacy Legal Settlement 9 0.02 Operating Income Before
Special Items ($58) $1 ($145) ($1) $429 $0.88 Diluted Shares
Outstanding 486 Diluted Shares Outstanding - Before Special Items
486 DATASOURCE: Tyco International Ltd. CONTACT: News Media, Paul
Fitzhenry, +1-609-720-4261, or Investor Relations, Ed Arditte,
+1-609-720-4621, or Antonella Franzen, +1-609-720-4665, all of Tyco
International Ltd. Web site: http://www.tyco.com/
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