PEMBROKE, Bermuda, Nov. 11 /PRNewswire-FirstCall/ -- ($ millions,
except per-share amounts) Q4 Q4 % FY FY % 2008 2007 Change 2008
2007 Change Revenue $5,284 $4,952 7% $20,199 $18,477 9% Income
(Loss) from Continuing Operations $264 $209 26% $1,095 ($2,524) N/A
Diluted EPS from Continuing Operations $0.55 $0.42 31% $2.25
($5.10) N/A Special Items ($0.26) ($0.15) ($0.81) ($6.99) Income
from Continuing Ops Before Special Items $387 $284 36% $1,493 $948
57% Diluted EPS from Continuing Ops Before Special Items $0.81
$0.57 42% $3.06 $1.89 62% -- Revenue increased 7% with organic
revenue growth of 4% -- Company achieved operating margin of 8.1%
and operating margin before special items of 11.0% -- Company had
strong cash flow quarter -- Quarterly dividend increased 33% during
the quarter to $0.20 per share -- Company's long-term debt rating
improved to BBB+ Tyco International Ltd. (NYSE:TYC)(BSX:TYC) today
reported $0.55 in diluted earnings per share (EPS) from continuing
operations for the fiscal fourth quarter of 2008 and diluted EPS
from continuing operations before special items of $0.81. Diluted
EPS from continuing operations was negatively impacted by special
items which totaled $0.26 per share, primarily for restructuring
activities. Diluted EPS from continuing operations before special
items increased 42% compared to the fourth quarter of 2007. Revenue
in the quarter increased 7% to $5.3 billion, with organic revenue
growth of 4%. The company's operating margin was 8.1% and the
operating margin before special items was 11.0%. For the full year,
revenue increased 9% to $20.2 billion, with organic revenue growth
of 5%. The company's operating margin for the full year was 9.6%
and the operating margin before special items was 11.0%. Cash from
operating activities was $1.0 billion in the quarter. The company
had free cash flow of $759 million which was negatively impacted by
$62 million primarily for restructuring activities. Tyco Chairman
and Chief Executive Officer Ed Breen said, "We delivered solid
results in the fourth quarter and for the full year, with good
revenue growth and operating income improvement. We continued to
make progress on our key initiatives to improve our operations,
refine our portfolio and carefully allocate our capital. While we
always take a disciplined approach to managing our businesses, this
is an area of intense focus in this period of economic uncertainty.
Our strong balance sheet and cash flow provide us with flexibility
to strengthen our businesses through internal investments and
bolt-on acquisitions." 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 fourth quarter of 2007 unless otherwise indicated. ADT
Worldwide Q4 Q4 % FY FY % 2008 2007 Change 2008 2007 Change Revenue
$2,052 $1,989 3% $8,017 $7,648 5% Operating Income $200 $241 (17%)
$910 $842 8% Operating Margin 9.7% 12.1% 11.4% 11.0% Special Items
($48) ($16) ($97) ($129) Operating Income Before Special Items $248
$257 (4%) $1,007 $971 4% Operating Margin Before Special Items
12.1% 12.9% 12.6% 12.7% Revenue increased 3% in the quarter with
organic revenue growth of 0.5%. Recurring revenue grew 5%
organically and improved across all regions. Systems installation
and service revenue declined 3.5% organically due to weakness in
North America and Europe, mostly as a result of lower sales to the
retailer end market in North America and Europe and softness in the
U.K. commercial market. This was partially offset by continued
strong growth in the rest of the world. Operating income was $200
million in the quarter and the operating margin was 9.7%. Special
items consisted of $48 million of restructuring charges. Operating
income before special items was $248 million and the operating
margin before special items was 12.1% which was negatively impacted
by 70 basis points primarily for legal matters and by approximately
40 basis points related to the acquisition of First Service
Security. For the full year, revenue increased 5% to $8 billion
with organic revenue growth of 2%. Operating income was $910
million and the operating margin was 11.4%. Operating income before
special items increased 4% to more than $1 billion and the
operating margin before special items was 12.6%, which was
adversely impacted by approximately 50 basis points related to the
analog-to- digital conversion. Flow Control Q4 Q4 % FY FY % 2008
2007 Change 2008 2007 Change Revenue $1,188 $1,071 11% $4,418
$3,766 17% Operating Income $152 $123 24% $618 $457 35% Operating
Margin 12.8% 11.5% 14.0% 12.1% Special Items ($9) ($12) ($14) ($29)
Operating Income Before Special Items $161 $135 19% $632 $486 30%
Operating Margin Before Special Items 13.6% 12.6% 14.3% 12.9%
Revenue increased 11% in the quarter with organic revenue growth of
6.5% led by continued growth in the Valves business, which grew 15%
organically. This was offset by a 6% organic revenue decline in the
Water business primarily due to reduced water pipeline project
activity in Australia. Operating income was $152 million in the
quarter and the operating margin was 12.8%. Operating income before
special items increased 19% to $161 million and the operating
margin before special items improved by 100 basis points to 13.6%.
The increase in the operating income and margin before special
items was led by the Valves and Thermal Controls businesses. For
the full year, revenue increased 17% to $4.4 billion with organic
revenue growth of 9%. Operating income was $618 million and the
operating margin was 14.0%. Operating income before special items
increased 30% to $632 million and the operating margin before
special items improved by 140 basis points to 14.3% due to higher
revenue and productivity improvements. Fire Protection Services Q4
Q4 % FY FY % 2008 2007 Change 2008 2007 Change Revenue $944 $911 4%
$3,553 $3,366 6% Operating Income $74 $80 (8%) $321 $258 24%
Operating Margin 7.8% 8.8% 9.0% 7.7% Special Items ($30) ($8) ($31)
($23) Operating Income Before Special Items $104 $88 18% $352 $281
25% Operating Margin Before Special Items 11.0% 9.7% 9.9% 8.3%
Revenue increased 4% in the quarter with organic revenue growth of
2%. The North America SimplexGrinnell business grew 7% organically
due to higher levels of service and installation activities. The
international fire businesses declined due to the planned exit of
certain non-core fire activities. Operating income was $74 million
in the quarter and the operating margin was 7.8%. Special items of
$30 million consisted primarily of restructuring charges in Europe.
Operating income before special items increased 18% to $104 million
and the operating margin before special items increased 130 basis
points to 11.0%, with improvements in SimplexGrinnell as well as
our international businesses. For the full year, revenue increased
6% to $3.6 billion with organic revenue growth of 2%. Operating
income was $321 million and the operating margin was 9%. Operating
income before special items increased 25% to $352 million and the
operating margin before special items improved 160 basis points to
9.9%. Electrical and Metal Products Q4 Q4 % FY FY % 2008 2007
Change 2008 2007 Change Revenue $591 $533 11% $2,272 $1,974 15%
Operating Income $88 $45 96% $342 $159 115% Operating Margin 14.9%
8.4% 15.1% 8.1% Special Items ($31) ($7) ($43) ($7) Operating
Income Before Special Items $119 $52 129% $385 $166 132% Operating
Margin Before Special Items 20.1% 9.8% 16.9% 8.4% Revenue increased
11% in the quarter with organic revenue growth of 9%. The increase
in revenue was driven by better pricing for steel tubular and
copper products partially offset by lower volume. Operating income
was $88 million in the quarter and the operating margin was 14.9%.
Special items consisted of $31 million of restructuring charges.
Operating income before special items of $119 million improved
primarily due to better metal spreads and continuing productivity
improvements. For the full year, revenue increased 15% to $2.3
billion with organic revenue growth of 13%. Operating income was
$342 million and the operating margin was 15.1%. Operating income
before special items more than doubled to $385 million. The
operating margin before special items was 16.9%. Safety Products Q4
Q4 % FY FY % 2008 2007 Change 2008 2007 Change Revenue $507 $447
13% $1,934 $1,719 13% Operating Income $65 $65 0% $284 $274 4%
Operating Margin 12.8% 14.5% 14.7% 15.9% Special Items ($34) ($19)
($73) ($39) Operating Income Before Special Items $99 $84 18% $357
$313 14% Operating Margin Before Special Items 19.5% 18.8% 18.5%
18.2% Revenue increased 13% in the quarter with organic revenue
growth of 11% led by the fire suppression and life safety
businesses. Operating income was $65 million in the quarter and the
operating margin was 12.8%. Special items consisted of $34 million
of restructuring charges. Operating income before special items
increased 18% to $99 million and the operating margin before
special items improved 70 basis points to 19.5% due to higher
revenue and productivity while investments in R&D and sales and
marketing increased. For the full year, revenue increased 13% to
$1.9 billion with organic revenue growth of 8%. Operating income
was $284 million and the operating margin was 14.7%. Special items
for the full year consisted of $73 million of restructuring
charges. Operating income before special items was $357 million and
the operating margin before special items was 18.5%. OTHER ITEMS --
Corporate and Other expense in the quarter was $150 million
including $2 million of income from special items. Corporate
expense was negatively impacted by certain foreign exchange
transactions. -- Restructuring charges of $111 million in the
fourth quarter were incurred as part of the company's
previously-announced restructuring program. -- The GAAP tax rate
for the quarter was 24.7% and was favorably impacted by 50 basis
points for tax benefits related to special items. The GAAP tax rate
for the full year was 23.4% and was favorably impacted by 1.2
percentage points of tax benefits related to special items. --
Since announcing a new $1 billion share repurchase program in July,
the company repurchased 2.5 million shares for $100 million. -- In
September, the company announced a 33% increase in its fourth
quarter dividend from $0.15 to $0.20. -- During September, Standard
& Poors and Fitch Ratings each raised their long-term debt
rating on Tyco to BBB+ from BBB. -- Tyco continues to make progress
in its portfolio refinement activities including last month's
acquisition of Vue Technology, Inc., a leading provider of radio
frequency identification (RFID) technology for its Sensormatic
business. ABOUT TYCO INTERNATIONAL Tyco International (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 2008 revenue of more than $20 billion
and has more than 110,000 employees worldwide. More information on
Tyco can be found at http://www.tyco.com/. CONFERENCE CALL AND
WEBCAST Management will discuss the company's fourth quarter
results and 2009 outlook during a conference call and webcast for
investors today beginning at 8:30 am ET. Today's conference call
for investors 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 November 11, 2008 and ending at 10:59 p.m. on November 18,
2008. The dial-in number for participants in the United States is
(866) 465-1306. For participants outside the United States, the
replay dial-in number is (203) 369-1423. 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 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 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 June 27, 2008. TYCO
INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (in
millions, except per share data) (Unaudited) Quarter Ended Twelve
Months Ended Sept 26, Sept 28, Sept 26, Sept 28, 2008 2007 2008
2007 Net revenue $5,284 $4,952 $20,199 $18,477 Cost of sales 3,417
3,274 13,123 12,217 Selling, general and administrative expenses
1,301 1,218 4,906 4,776 Class action settlement, net (3) (13) (10)
2,862 Separation costs - 20 4 105 Goodwill impairment 9 - 9 46
Restructuring, asset impairment and divestiture charges, net 131 56
226 203 Operating income (loss) 429 397 1,941 (1,732) Interest
income 11 50 110 104 Interest expense (73) (105) (396) (313) Other
(expense) income, net (19) 2 (224) (255) Income (loss) from
continuing operations before income taxes and minority interest 348
344 1,431 (2,196) Income taxes (86) (134) (335) (324) Minority
interest 2 (1) (1) (4) Income (loss) from continuing operations 264
209 1,095 (2,524) Income (loss) from discontinued operations, net
of income taxes 170 (28) 458 782 Net income (loss) $434 $181 $1,553
$(1,742) Basic earnings per common share: Income (loss) from
continuing operations $0.56 $0.42 $2.26 $(5.10) Income (loss) from
discontinued operations 0.35 (0.06) 0.95 1.58 Net income (loss)
$0.91 $0.36 $3.21 $(3.52) Diluted earnings per common share: Income
(loss) from continuing operations $0.55 $0.42 $2.25 $(5.10) Income
(loss) from discontinued operations 0.36 (0.06) 0.94 1.58 Net
income (loss) $0.91 $0.36 $3.19 $(3.52) Weighted-average number of
shares outstanding: Basic 475 496 484 495 Diluted 478 500 488 495
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 June 27, 2008. TYCO
INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions) (Unaudited)
Quarter Ended Sept 26, 2008 Sept 28, 2007 NET REVENUE ADT Worldwide
$2,052 $1,989 Flow Control 1,188 1,071 Fire Protection Services 944
911 Electrical and Metal Products 591 533 Safety Products 507 447
Corporate and Other 2 1 Total Net Revenue $5,284 $4,952 OPERATING
INCOME AND MARGIN ADT Worldwide $200 9.7% $241 12.1% Flow Control
152 12.8% 123 11.5% Fire Protection Services 74 7.8% 80 8.8%
Electrical and Metal Products 88 14.9% 45 8.4% Safety Products 65
12.8% 65 14.5% Corporate and Other (150) N/M (157) N/M Operating
Income (Loss) and Margin $429 8.1% $397 8.0% Twelve Months Ended
Sept 26, 2008 Sept 28, 2007 NET REVENUE ADT Worldwide $8,017 $7,648
Flow Control 4,418 3,766 Fire Protection Services 3,553 3,366
Electrical and Metal Products 2,272 1,974 Safety Products 1,934
1,719 Corporate and Other 5 4 Total Net Revenue $20,199 $18,477
OPERATING INCOME AND MARGIN ADT Worldwide $910 11.4% $842 11.0%
Flow Control 618 14.0% 457 12.1% Fire Protection Services 321 9.0%
258 7.7% Electrical and Metal Products 342 15.1% 159 8.1% Safety
Products 284 14.7% 274 15.9% Corporate and Other (534) N/M (3,722)
N/M Operating Income (Loss) and Margin $1,941 9.6% $(1,732) -9.4%
TYCO INTERNATIONAL LTD. CONSOLIDATED BALANCE SHEETS (in millions)
(Unaudited) Sept 26, 2008 Sept 28, 2007 Current Assets: Cash and
cash equivalents $1,519 $1,894 Accounts receivable, net 2,987 2,900
Inventories 1,865 1,783 Class action settlement escrow - 2,992
Other current assets 1,257 1,157 Deferred income taxes 529 458
Assets held for sale 384 1,385 Total current assets 8,541 12,569
Property, plant and equipment, net 3,503 3,526 Goodwill 11,498
11,499 Intangible assets, net 2,655 2,653 Other assets 2,607 2,568
Total Assets $28,804 $32,815 Current Liabilities: Short-term debt
and current maturities of long-term debt $555 $380 Accounts payable
1,611 1,637 Class action settlement liability - 2,992 Accrued and
other current liabilities 2,756 2,869 Deferred revenue 607 583
Liabilities held for sale 128 662 Total current liabilities 5,657
9,123 Long-term debt 3,709 4,082 Other liabilities 3,930 3,919
Total Liabilities 13,296 17,124 Minority interest 14 67
Shareholders' equity 15,494 15,624 Total Liabilities and
Shareholders' Equity $28,804 $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 June 27, 2008. TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited)
Quarter Ended Twelve Months Ended Sept 26, Sept 28, Sept 26, Sept
28, 2008 2007 2008 2007 Cash Flows from Operating Activities: Net
income (loss) $434 $181 $1,553 $(1,742) (Income) loss from
discontinued operations (170) 28 (458) (782) Income from continuing
operations 264 209 1,095 (2,524) Adjustments to reconcile net cash
provided by operating activities: Depreciation and amortization 300
281 1,154 1,148 Non-cash compensation expense 21 52 99 173 Deferred
income taxes 21 58 (94) (16) Provision for losses on accounts
receivable and inventory 36 32 135 94 Loss on the retirement of
debt - - 258 259 Goodwill impairment 9 - 9 46 Other non-cash items
62 21 138 56 Changes in assets and liabilities, net of the effects
of acquisitions and divestitures: Accounts receivable, net 67 72
(176) (136) Inventories 35 103 (138) (163) Other current assets 2
52 11 154 Accounts payable 119 148 (16) 65 Accrued and other
liabilities 205 147 (152) (68) Class action settlement liability -
- (3,020) 2,992 Income taxes, net (87) (20) (95) (250) Other (18)
(152) (80) (16) Net cash provided by (used in) operating activities
1,036 1,003 (872) 1,814 Net cash provided by (used in) discontinued
operating activities 7 8 (18) 2,498 Cash Flows from Investing
Activities: Capital expenditures (189) (195) (734) (666) Proceeds
from disposal of assets 14 9 28 23 Acquisition of businesses, net
of cash acquired (255) (5) (347) (31) Accounts purchased from ADT
dealer network (107) (136) (376) (409) Liquidation of rabbi trust
investments - - - 271 Class action settlement escrow - - 2,960
(2,960) Other 17 (5) 32 32 Net cash (used in) provided by investing
activities (520) (332) 1,563 (3,740) Net cash provided by (used in)
discontinued investing activities 415 (18) 894 (810) Cash Flows
from Financing Activities: Net repayments of debt (347) (1) (547)
(5,928) Proceeds from exercise of share options 9 18 49 406
Dividends paid (71) - (292) (791) Repurchase of common shares by
subsidiary (98) (59) (854) (727) Repurchase of common shares held
in Treasury (192) - (192) - Transfers from discontinued operations
422 (67) 880 8,585 Other (4) (9) (72) 12 Net cash (used in)
provided by financing activities (281) (118) (1,028) 1,557 Net cash
(used in) provided by discontinued financing activities (422) 66
(876) (950) Effect of currency translation on cash (58) 31 (38) 70
Effect of currency translation on cash of discontinued operations -
- - 33 Net increase (decrease) in cash and cash equivalents 177 640
(375) 472 Less: net increase in cash related to discontinued
operations - (56) - (771) Cash and cash equivalents at beginning of
period 1,342 1,310 1,894 2,193 Cash and cash equivalents at end of
period $1,519 $1,894 $1,519 $1,894 Reconciliation to "Free Cash
Flow": Net cash provided by (used in) operating activities $1,036
$1,003 $(872) $1,814 Decrease in sale of accounts receivable 2 1 14
7 Capital expenditures, net (175) (186) (706) (643) Accounts
purchased from ADT dealer network (107) (136) (376) (409) Purchase
accounting and holdback liabilities - (5) (2) (10) Voluntary
pension contributions 3 - 4 23 Free Cash Flow $759 $677 $(1,938)
$782 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 September 26, 2008 Foreign Acquisition/
Net Revenue Currency Divestiture ADT Worldwide $2,052 3.2% $4 0.2%
$50 2.5% Flow Control 1,188 10.9% 44 4.1% 6 0.5% Fire Protection
Services 944 3.6% 11 1.2% - 0.0% Electrical and Metal Products 591
10.9% 10 1.9% 1 0.2% Safety Products 507 13.4% 9 2.0% 2 0.4%
Corporate and Other 2 100.0% (1) -100.0% - 0.0% Total Net Revenue
$5,284 6.7% $77 1.6% $59 1.2% Net Revenue for the Quarter Ended
Organic September Other Revenue Growth 28, 2007 ADT Worldwide $-
0.0% $9 0.5% $1,989 Flow Control (3) -0.3% 70 6.5% 1,071 Fire
Protection Services - 0.0% 22 2.4% 911 Electrical and Metal
Products - 0.0% 47 8.8% 533 Safety Products - 0.0% 49 11.0% 447
Corporate and Other - 0.0% 2 200.0% 1 Total Net Revenue $(3) -0.1%
$199 4.0% $4,952 Twelve Months Ended September 26, 2008 Foreign
Acquisition/ Net Revenue Currency Divestiture ADT Worldwide $8,017
4.8% $213 2.8% $49 0.6% Flow Control 4,418 17.3% 314 8.3% 16 0.4%
Fire Protection Services 3,553 5.6% 125 3.8% - 0.0% Electrical and
Metal Products 2,272 15.1% 44 2.2% 1 0.1% Safety Products 1,934
12.5% 76 4.4% 1 0.1% Corporate and Other 5 25.0% - 0.0% - 0.0%
Total Net Revenue $20,199 9.3% $772 4.2% $67 0.4% Net Revenue for
the Twelve Months Ended Organic Revenue September Other Growth 28,
2007 ADT Worldwide $(22) -0.3% $129 1.7% $7,648 Flow Control (10)
-0.3% 332 8.8% 3,766 Fire Protection Services - 0.0% 62 1.8% 3,366
Electrical and Metal Products - 0.0% 253 12.8% 1,974 Safety
Products - 0.0% 138 8.0% 1,719 Corporate and Other - 0.0% 1 25.0% 4
Total Net Revenue $(32) -0.2% $915 5.0% $18,477 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 Quarter Ended Year 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 Quarter Ended
Ended Dec. 28, March 28, June 27, Sept. 26, Sept. 26, 2007 2008
2008 2008 2008 Diluted EPS from Continuing Operations $0.72 $0.56
$0.41 $0.55 $2.25 Restructuring charges in cost of sales and
SG&A 0.01 0.01 0.01 0.02 0.04 Class action settlement, net
(0.01) (0.01) (0.02) Separation costs (0.08) 0.01 0.39 0.04 0.36
Losses on divestitures 0.00 0.00 Restructuring and asset impairment
charges, net 0.02 0.06 0.06 0.19 0.33 Goodwill impairment 0.02 0.02
Tax items 0.04 0.00 0.04 Voluntary Replacement Program Reserve
Adjustment (0.01) (0.02) Legacy Legal Settlement 0.04 0.02 0.06
Diluted EPS from Continuing Operations Before Special Items $0.71
$0.67 $0.88 $0.81 $3.06 Tyco International Ltd. For the Twelve
Months Ended September 26, 2008 (in millions, except per share
data) Fire Electrical Corp- ADT Flow Protection & Metal Safety
orate Worldwide Control Services Products Products & Other
Revenue Revenue $2,052 $1,188 $944 $591 $507 $2 $5,284 Fire
Electrical Corp- Oper- ADT Flow Protection & Metal Safety orate
ating Worldwide Control Services Products Products & Other
Income Operating Income $200 $152 $74 $88 $65 ($150) $429
Restructur -ing charges in cost of sales and SG&A 1 6 1 3 2 13
Class action settlement, net (3) (3) Separation costs Losses on
divestitures Restructuring and asset impairment charges, net 47 3
20 28 32 1 131 Goodwill impairment 9 9 Tax items Voluntary
Replacement Program Reserve Adjustment Legacy Legal Settlement
Operating Income Before Special Items $248 $161 $104 $119 $99
($152) $579 Income Diluted Interest Other from EPS from Expense,
Expense, Income Minority Continuing Continuing net net Taxes
Interest Operations Operations Operating Income ($62) ($19) ($86)
$2 $264 $0.55 Restructuring charges in cost of sales and SG&A
(5) 8 0.02 Class action settlement, net (3) (0.01) Separation costs
17 17 0.04 Losses on divestitures Restructuring and asset
impairment charges, net (39) 92 0.19 Goodwill impairment 9 0.02 Tax
items Voluntary Replacement Program Reserve Adjustment Legacy Legal
Settlement Operating Income Before Special Items ($62) ($2) ($130)
$2 $387 $0.81 Diluted Shares Outstanding 478 Diluted Shares
Outstanding - Before Special Items 478 Tyco International Ltd. For
the Twelve Months Ended September 26, 2008 (in millions, except per
share data) Fire Electrical Corp- ADT Flow Protection & Metal
Safety orate Worldwide Control Services Products Products &
Other Revenue Revenue $8,017 $4,418 $3,553 $2,272 $1,934 $5 $20,199
Fire Electrical Corp- Oper- ADT Flow Protection & Metal Safety
orate ating Worldwide Control Services Products Products &
Other Income Operating Income $910 $618 $321 $342 $284 ($534)
$1,941 Restructuring charges in cost of sales and SG&A 1 9 9 6
3 28 Class action settlement, net (10) (10) Separation costs 5 5
Losses on divestitures 1 1 Restructuring and asset impairment
charges, net 96 5 22 34 67 1 225 Goodwill impairment 9 9 Tax items
Voluntary Replacement Program Reserve Adjustment (9) (9) Legacy
Legal Settlement 29 29 Operating Income Before Special Items $1,007
$632 $352 $385 $357 $(514) $2,219 Income Diluted Interest Other
from EPS from Expense, Expense, Income Minority Continuing
Continuing net net Taxes Interest Operations Operations Operating
Income ($286) ($224) ($335) ($1) $1,095 $2.25 Restructuring charges
in cost of sales and SG&A (6) 22 0.04 Class action settlement,
net (10) (0.02) Separation costs 47 225 (102) 175 0.36 Losses on
divestitures 1 0.00 Restructuring and asset impairment charges, net
(65) 160 0.33 Goodwill impairment 9 0.02 Tax items 21 21 0.04
Voluntary Replacement Program Reserve Adjustment (9) (0.02) Legacy
Legal Settlement 29 0.06 Operating Income Before Special Items
($239) $1 ($487) ($1) $1,493 $3.06 Diluted Shares Outstanding 488
Diluted Shares Outstanding - Before Special Items 488 DATASOURCE:
Tyco International Ltd. CONTACT: News Media, Paul Fitzhenry,
+1-609-720-4621; 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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