Fiscal First Quarter Results - Net Sales of $2.9 Billion Increased
7 Percent Sequentially and 7 Percent Year-Over-Year - GAAP
Operating Income of $269 Million; Adjusted Operating Income of $332
Million, a 50 Percent Sequential Increase - Diluted Earnings Per
Share From Continuing Operations (GAAP EPS) of $0.37; Adjusted EPS
of $0.47, a 57 Percent Sequential Increase - Cash From Continuing
Operations of $330 Million; Free Cash Flow of $256 Million Fiscal
Second Quarter Outlook - Company Expects Sales of $2.85 to $2.95
Billion, Up 22 to 26 Percent Year-Over-Year and Flat Sequentially -
GAAP Operating Income Expected to be $315 to $350 Million; Adjusted
Operating Income Expected to be $335 to $370 Million - GAAP EPS
Expected to be $0.46 to $0.51; Adjusted EPS Expected to be $0.49 to
$0.54 SCHAFFHAUSEN, Switzerland, Jan. 27 /PRNewswire-FirstCall/ --
Tyco Electronics Ltd. (NYSE:TEL) today reported results for the
fiscal first quarter ended Dec. 25, 2009. The company reported net
sales of $2.9 billion, a 7 percent increase sequentially and a 7
percent increase compared to the prior-year period. GAAP EPS were
$0.37 for the quarter, compared to $0.07 in the prior-year period.
Included in the GAAP EPS were $0.10 per share of restructuring and
other charges. This compares to $0.14 per share of net charges in
the prior-year quarter. Adjusted EPS were $0.47 in the quarter,
compared to last year's adjusted EPS of $0.21. "The first quarter
was a very good start to the year for us," said Tyco Electronics
Chief Executive Officer Tom Lynch. "We had another quarter of
sequentially improving sales in our Electronic Components markets
due to stronger end demand and inventory replenishment in the
supply chain. This, coupled with the footprint restructuring we
began over two years ago and the aggressive cost actions we took
last year, enabled us to improve our adjusted operating margin to
11.5 percent, up from 8.2 percent last quarter. "In the second
quarter, we expect the trends we experienced in the first quarter
to continue, and overall sales to be similar to first quarter
levels. We anticipate that our adjusted operating margin will
approach 12 percent in the second quarter." The following
discussion includes non-GAAP financial measures which are described
at the end of this press release. For a reconciliation of these
non-GAAP financial measures, see the attached tables. All dollar
amounts are pre-tax and stated in millions. Dec. 25, Sept. 25, Dec.
26, 2009 2009 2008 --------- ---------- --------- ($ in millions)
Net Sales $2,892 $2,698 $2,713 Operating Income $269 $176 $83
Restructuring and Other Changes $(63) $(45) $(78) Other Items $0 $0
$(17) --- --- ---- Adjusted Operating Income $332 $221 $178
Operating Margin 9.3% 6.5% 3.1% Adjusted Operating Margin 11.5%
8.2% 6.6% % Change % Change Sequential YoY ---------- --- ($ in
millions) Net Sales 7% 7% Operating Income 53% 224% Restructuring
and Other Changes Other Items Adjusted Operating Income 50% 87%
Operating Margin Adjusted Operating Margin Sales grew 7 percent,
both sequentially and compared to the prior-year quarter.
Organically, sales increased 5 percent sequentially and 2 percent
compared to the prior year. The sequential organic sales increase
was driven by a 14 percent increase in the Electronic Components
segment, where sales were up across all end markets. The company's
growth was particularly strong in the Automotive business, where
sales grew 17 percent due to increased global production levels and
inventory replenishment. Organic sales declined 6 percent
sequentially in the Network Solutions segment, and 3 percent in the
Specialty Products segment, as these businesses continued to be
affected by low levels of capital spending. In Undersea
Telecommunications, sales declined 25 percent sequentially, in line
with our expectations as a result of lower project activity. The
adjusted operating margin improved to 11.5 percent, compared to 8.2
percent in the prior quarter and 6.6 percent a year ago, reflecting
the benefits of higher sales, footprint restructuring and cost
reduction actions. In addition, last year's first quarter included
approximately $50 million of foreign currency losses on hedging
activity. CASH FLOW Cash from continuing operations was $330
million during the quarter, compared to $32 million in the year-ago
period. Free cash flow was $256 million, compared to a use of $79
million in the prior-year period. The increase in free cash flow
was primarily driven by higher income levels, as well as lower
capital expenditures versus the prior year. ORDERS Total company
orders increased 2 percent sequentially in the first quarter. On a
year-over-year basis, orders increased 15 percent. The book-to-bill
ratio was 1.02 in the quarter. Excluding the company's Undersea
Telecommunications segment, which is a project-oriented business
with uneven order patterns, orders increased 15 percent
sequentially and increased 34 percent year-over-year, and the
book-to-bill ratio was 1.09. The 15 percent sequential order
increase was broad-based across most of the company's end markets.
ADDITIONAL ITEM On Jan. 20, the company completed the acquisition
of Sensitive Object, an early-stage software company engaged in
developing touch-enabling technology focused on computers, mobile
devices and consumer electronics, for a purchase price of
approximately $62 million in cash, subject to certain adjustments.
This acquisition will complement the company's existing touch
systems business, which is part of the Specialty Products segment.
SECOND QUARTER FISCAL 2010 OUTLOOK For the second fiscal quarter,
the company expects sales of $2.85 to $2.95 billion and GAAP
operating income of $315 to $350 million, which includes
restructuring and other charges of approximately $20 million.
Adjusted operating income is expected to be $335 to $370 million.
GAAP EPS are expected to be $0.46 to $0.51, including restructuring
and other charges of approximately $0.03 per share. Adjusted EPS
are expected to be $0.49 to $0.54, compared to adjusted EPS of
$0.14 in the prior-year period. This outlook assumes current
foreign exchange rates. ($ in millions, except per share amounts)
Q2 Outlook ---------- Sales $2,850 to $2,950 GAAP Operating Income
$315 to $350 Restructuring and Other Charges $(20) Adjusted
Operating Income $335 to $370 GAAP EPS $0.46 to $0.51 Adjusted EPS
$0.49 to $0.54 ABOUT TYCO ELECTRONICS Tyco Electronics Ltd. is a
leading global provider of engineered electronic components,
network solutions, specialty products and undersea
telecommunication systems, with fiscal 2009 sales of $10.3 billion
to customers in more than 150 countries. We design, manufacture and
market products for customers in a broad array of industries
including automotive; data communication systems and consumer
electronics; telecommunications; aerospace, defense and marine;
medical; energy; and lighting. With approximately 7,000 engineers
and worldwide manufacturing, sales and customer service
capabilities, Tyco Electronics' commitment is our customers'
advantage. More information on Tyco Electronics can be found at
http://www.tycoelectronics.com/. CONFERENCE CALL AND WEBCAST -- The
company will hold a conference call for investors today beginning
at 8:30 a.m. EST. -- Internet users will be able to access the
company's earnings webcast, including slide materials, at the
"Investors" section of Tyco Electronics' website:
http://investors.tycoelectronics.com/. -- For both "listen-only"
telephone participants and those participants who wish to take part
in the question-and-answer portion of the call, the dial-in number
in the United States is (800) 288-8960. The telephone dial-in
number for participants outside the United States is (612)
332-0530. -- An audio replay of the conference call will be
available beginning at 10:30 a.m. on Jan. 27, 2010 and ending at
11:59 p.m. on Feb. 3, 2010. The dial-in number for participants in
the United States is (800) 475-6701. For participants outside the
United States, the replay dial-in number is (320) 365-3844. The
replay access code for all callers is 140511. NON-GAAP MEASURES
"Organic Sales Growth," "Adjusted Operating Income," "Adjusted
Operating Margin," "Adjusted Income Tax Expense," "Adjusted Income
from Continuing Operations," "Adjusted Earnings Per Share," and
"Free Cash Flow" (FCF) are non-GAAP measures and should not be
considered replacements for GAAP results. "Organic Sales Growth" is
a useful measure used by the company to measure the underlying
results and trends in the business. The difference between reported
net sales growth (the most comparable GAAP measure) and Organic
Sales Growth (the non-GAAP measure) consists of the impact from
foreign currency, acquisitions and divestitures. Organic Sales
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. The limitation of this
measure is that it excludes items that have an impact on the
company's sales. This limitation is best addressed by using organic
sales growth in combination with the GAAP numbers. See the
accompanying tables to this press release for the reconciliation
presenting the components of Organic Sales Growth. The company has
presented its operating income before special items including
charges related to legal settlements and reserves, restructuring
charges, impairment charges, and other income or charges ("Adjusted
Operating Income"). The company utilizes Adjusted Operating Income
to assess segment level core operating performance and to provide
insight to management in evaluating segment operating plan
execution and underlying market conditions. It is also a
significant component in the company's incentive compensation
plans. Adjusted Operating Income is a useful measure for investors
because it better reflects the company's underlying operating
results, trends and the comparability of these results between
periods. The difference between Adjusted Operating Income and
operating income (the most comparable GAAP measure) consists of the
impact of charges related to legal settlements and reserves,
restructuring charges, impairment charges, and other income or
charges that may mask the underlying operating results and/or
business trends. The limitation of this measure is that it excludes
the financial impact of items that would otherwise either increase
or decrease the company's reported operating income. This
limitation is best addressed by using Adjusted Operating Income in
combination with operating income (the most comparable GAAP
measure) in order to better understand the amounts, character and
impact of any increase or decrease on reported results. The company
has presented its operating margin before special items including
charges related to legal settlements and reserves, restructuring
charges, impairment charges, and other income or charges ("Adjusted
Operating Margin"). The company presents and forecasts its Adjusted
Operating Margin before special items to give investors a
perspective on the underlying business results. Because the company
cannot predict the amount and timing of such items and the
associated charges or gains that will be recorded in the company's
financial statements, it is difficult to include the impact of
those items in the forecast. The company has presented income tax
expense after adjusting for the tax effect of special items
including charges related to restructuring, impairment charges, and
other income or charges ("Adjusted Income Tax Expense"). The
company presents Adjusted Income Tax Expense to provide investors
further information regarding the tax effects of adjustments used
in determining the non-GAAP financial measure Adjusted Income from
Continuing Operations (as defined below). The difference between
Adjusted Income Tax Expense and income tax expense (the most
comparable GAAP measure) is the tax effect of adjusting items. The
limitation of this measure is that it excludes the financial impact
of items that would otherwise either increase or decrease income
tax expense. This limitation is best addressed by using Adjusted
Income Tax Expense in combination with income tax expense (the most
comparable GAAP measure) in order to better understand the amounts,
character and impact of any increase or decrease in reported
amounts. The company has presented income from continuing
operations attributable to Tyco Electronics Ltd. before special
items including charges related to legal settlements and reserves,
restructuring charges, impairment charges, other income or charges
and, if applicable, related tax effects ("Adjusted Income from
Continuing Operations"). The company presents Adjusted Income from
Continuing Operations as it believes that it is appropriate for
investors to consider results excluding these items in addition to
its results in accordance with GAAP. Adjusted Income from
Continuing Operations provides additional information regarding the
company's underlying operating results, trends and the
comparability of these results between periods. The difference
between Adjusted Income from Continuing Operations and income from
continuing operations attributable to Tyco Electronics Ltd. (the
most comparable GAAP measure) consists of the impact of charges
related to legal settlements and reserves, restructuring charges,
impairment charges, other income or charges and, if applicable,
related tax effects. The limitation of this measure is that it
excludes the financial impact of items that would otherwise either
increase or decrease the company's reported results. This
limitation is best addressed by using Adjusted Income from
Continuing Operations in combination with income from continuing
operations attributable to Tyco Electronics Ltd. (the most
comparable GAAP measure) in order to better understand the amounts,
character and impact of any increase or decrease in reported
amounts. The company has presented diluted earnings per share from
continuing operations attributable to Tyco Electronics Ltd. before
special items, including charges related to legal settlements and
reserves, restructuring charges, impairment charges, and other
income or charges ("Adjusted Earnings Per Share"). The company
presents Adjusted Earnings Per Share because it believes that it is
appropriate for investors to consider results excluding these items
in addition to its results in accordance with GAAP. The company
believes such a measure provides a picture of its results that is
more comparable among periods since it excludes the impact of
special items, which may recur, but tend to be irregular as to
timing, thereby making comparisons between periods more difficult.
This limitation is best addressed by using Adjusted Earnings Per
Share in combination with diluted earnings per share from
continuing operations attributable to Tyco Electronics Ltd. (the
most comparable GAAP measure) in order to better understand the
amounts, character and impact of any increase or decrease on
reported results. "Free Cash Flow" (FCF) is a useful measure of the
company's cash generation 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. The difference reflects the impact
from: -- net capital expenditures, -- voluntary pension
contributions, and -- cash impact of special items. Net capital
expenditures are subtracted because they represent long-term
commitments. Voluntary pension contributions are subtracted from
the GAAP measure because this activity is driven by economic
financing decisions rather than operating activity. The company
forecasts its cash flow results excluding any voluntary pension
contributions because it has not yet made a determination about the
amount and timing of any future such contributions. In addition,
the company's forecast excludes the cash impact of special items
because the company cannot predict the amount and timing of such
items. 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 that 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. Because the
company does not predict the amount and timing of special items
that might occur in the future, and its forecasts are developed at
a level of detail different than that used to prepare GAAP-based
financial measures, the company does not provide reconciliations to
GAAP of its forward-looking financial measures. 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, financial condition or achievements to
differ materially from anticipated results, performance, financial
condition 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. Tyco Electronics has no intention and is under no
obligation to update or alter (and expressly disclaims any such
intention or obligation to do so) its forward-looking statements
whether as a result of new information, future events or otherwise,
except to the extent required by law. The forward-looking
statements in this release include statements addressing our future
financial condition and operating results. Examples of factors that
could cause actual results to differ materially from those
described in the forward-looking statements include, among others,
business, economic, competitive and regulatory risks, such as
developments in the credit markets; conditions affecting demand for
products, particularly the automotive industry and the
telecommunications, computer and consumer electronics industries;
future goodwill impairment; competition and pricing pressure;
fluctuations in foreign currency exchange rates and commodity
prices; political, economic and military instability in countries
in which we operate; compliance with current and future
environmental and other laws and regulations; and the possible
effects on us of changes in tax laws, tax treaties and other
legislation. More detailed information about these and other
factors is set forth in Tyco Electronics' Annual Report on Form
10-K for the fiscal year ended Sept. 25, 2009, as well as in Tyco
Electronics' Current Reports on Form 8-K and other reports filed by
Tyco Electronics with the Securities and Exchange Commission. TYCO
ELECTRONICS LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) For the Quarters Ended ---------------------- December
25, December 26, 2009 2008 ---- ---- (in millions, except per share
data) Net sales $2,892 $2,713 Cost of sales 2,051 1,989 ----- -----
Gross margin 841 724 Selling, general, and administrative expenses
368 411 Research, development, and engineering expenses 138 144
Pre-separation litigation charges, net - 9 Restructuring and other
charges, net 66 77 --- --- Operating income 269 83 Interest income
4 6 Interest expense (39) (42) Other income (expense), net 8 (1)
--- --- Income from continuing operations before income taxes 242
46 Income tax expense (69) (14) --- --- Income from continuing
operations 173 32 Income (loss) from discontinued operations, net
of income taxes - (67) --- --- Net income (loss) 173 (35) Less: net
income attributable to noncontrolling interests (1) (2) --- --- Net
income (loss) attributable to Tyco Electronics Ltd. $172 $(37) ====
==== Amounts attributable to Tyco Electronics Ltd.: Income from
continuing operations $172 $30 Income (loss) from discontinued
operations - (67) --- --- Net income (loss) $172 $(37) ==== ====
Basic earnings (loss) per share attributable to Tyco Electronics
Ltd.: Income from continuing operations $0.37 $0.07 Income (loss)
from discontinued operations - (0.15) --- ----- Net income (loss)
$0.37 $(0.08) ===== ====== Diluted earnings (loss) per share
attributable to Tyco Electronics Ltd.: Income from continuing
operations $0.37 $0.07 Income (loss) from discontinued operations -
(0.15) --- ----- Net income (loss) $0.37 $(0.08) ===== ======
Weighted-average number of shares outstanding: Basic 459 459
Diluted 462 461 TYCO ELECTRONICS LTD. CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED) December September 25, 25, 2009 2009
---- ---- (in millions, except share data) Assets Current Assets:
Cash and cash equivalents $1,695 $1,521 Accounts receivable, net of
allowance for doubtful accounts of 2,033 1,975 $41 and $48,
respectively Inventories 1,458 1,435 Prepaid expenses and other
current assets 481 487 Deferred income taxes 153 161 --- --- Total
current assets 5,820 5,579 Property, plant, and equipment, net
3,008 3,111 Goodwill 3,153 3,160 Intangible assets, net 388 407
Deferred income taxes 2,486 2,518 Receivable from Tyco
International Ltd. and Covidien plc 1,198 1,211 Other assets 230
234 --- --- Total Assets $16,283 $16,220 ======= =======
Liabilities and Shareholders' Equity Current Liabilities: Current
maturities of long-term debt $101 $101 Accounts payable 1,221 1,068
Accrued and other current liabilities 1,265 1,243 Deferred revenue
174 203 --- --- Total current liabilities 2,761 2,615 Long-term
debt 2,314 2,316 Long-term pension and postretirement liabilities
1,106 1,129 Deferred income taxes 174 188 Income taxes 2,312 2,312
Other liabilities 609 634 --- --- Total Liabilities 9,276 9,194
----- ----- Commitments and contingencies Shareholders' Equity:
Common shares, 468,215,574 shares authorized and issued, CHF 2.26
par value, at December 25, 2009; 468,215,574 shares authorized and
issued, CHF 2.43 par value, at September 25, 2009 899 1,049
Contributed surplus 8,116 8,135 Accumulated deficit (2,102) (2,274)
Treasury shares, at cost, 9,168,652 and 9,425,172 shares,
respectively (328) (349) Accumulated other comprehensive income 413
455 --- --- Total Tyco Electronics Ltd. shareholders' equity 6,998
7,016 Noncontrolling interests 9 10 --- --- Total Shareholders'
Equity 7,007 7,026 ----- ----- Total Liabilities and Shareholders'
Equity $16,283 $16,220 ======= ======= TYCO ELECTRONICS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the
Quarters Ended ---------------------- December 25, December 26,
2009 2008 ---- ---- (in millions) Cash Flows From Operating
Activities: Net income (loss) $173 $(35) (Income) loss from
discontinued operations, net of income taxes - 67 --- --- Income
from continuing operations 173 32 Adjustments to reconcile net cash
provided by operating activities: Non-cash restructuring and other
charges, net 19 10 Depreciation and amortization 138 127 Deferred
income taxes 53 (70) Provision for losses on accounts receivable
and inventories (5) 27 Other 12 16 Changes in assets and
liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net (76) 495 Inventories (20) (116)
Inventoried costs on long-term contracts (20) (28) Prepaid expenses
and other current assets 27 154 Accounts payable 162 (199) Accrued
and other current liabilities (97) (357) Income taxes - 22 Deferred
revenue (28) (52) Other (8) (29) --- --- Net cash provided by
continuing operating activities 330 32 Net cash provided by
discontinued operating activities - 1 --- --- Net cash provided by
operating activities 330 33 --- --- Cash Flows From Investing
Activities: Capital expenditures (76) (115) Proceeds from sale of
property, plant, and equipment 2 4 Proceeds from divestiture of
discontinued operations, net of cash retained by operations sold -
23 Proceeds from divestiture of business, net of cash retained by
business sold 12 - Other (2) (4) --- --- Net cash used in
continuing investing activities (64) (92) Net cash used in
discontinued investing activities - (1) --- --- Net cash used in
investing activities (64) (93) --- --- Cash Flows From Financing
Activities: Net decrease in commercial paper - (400) Proceeds from
long-term debt - 191 Repayment of long-term debt - (19) Repurchase
of common shares (18) (152) Payment of common share dividends and
cash distributions to shareholders (74) (74) Other (1) (3) --- ---
Net cash used in financing activities (93) (457) --- ---- Effect of
currency translation on cash 1 (24) Net increase (decrease) in cash
and cash equivalents 174 (541) Cash and cash equivalents at
beginning of period 1,521 1,090 ----- ----- Cash and cash
equivalents at end of period $1,695 $549 ====== ==== Supplemental
Cash Flow Information: Income taxes paid, net of refunds $16 $62
Reconciliation to Free Cash Flow: Net cash provided by continuing
operating activities $330 $32 Capital expenditures, net (74) (111)
--- ---- Free cash flow (1) $256 $(79) ==== ==== (1) Free cash flow
is a non-GAAP measure. See description of non- GAAP measures
contained in this release. TYCO ELECTRONICS LTD. CONSOLIDATED
SEGMENT DATA (UNAUDITED) For the Quarters Ended
---------------------- December 25, December 26, 2009 2008 ----
---- ($ in millions) Net Sales: Electronic Components $1,911 $1,625
Network Solutions 422 456 Specialty Products 358 367 Undersea
Telecommunications 201 265 --- --- Total $2,892 $2,713 ======
====== Operating Income (Loss): Electronic Components $163 8.5%
$(18) NM (1) Network Solutions 20 4.7% 44 9.6% Specialty Products
51 14.2% 28 7.6% Undersea Telecommunications 35 17.4% 38 14.3%
Pre-separation litigation charges, net - (9) --- --- Total $269
9.3% $83 3.1% ==== === (1) Not meaningful. TYCO ELECTRONICS LTD.
NET SALES GROWTH RECONCILIATION (UNAUDITED) Change in Net Sales for
the Quarter Ended December 25, 2009 versus Net Sales for the
Quarter Ended December 26, 2008
-------------------------------------------------------- Organic
(1) Translation(2) Divestiture ----------- --------------
----------- ($ in millions) Electronic Components (3): Automotive
$217 30.2% $85 $- DataComm (35) (14.2) 9 (12) Industrial (15) (8.4)
10 - Appliance 18 15.4 5 - Computer (5) (5.3) 1 (1) Consumer
Devices 10 8.0 1 (14) Other 8 4.9 5 (1) --- --- --- --- Total 198
12.2 116 (28) --- ---- --- --- Network Solutions (3): Energy (28)
(13.1) 17 1 Enterprise Networks (6) (5.6) 7 - Service Providers
(33) (25.4) 8 - Other - (1.8) - - --- ---- --- --- Total (67)
(14.8) 32 1 --- ----- --- --- Specialty Products (3): Aerospace,
Defense, and Marine (26) (15.7) 6 - Touch Systems - 0.4 5 - Circuit
Protection 8 13.9 3 - Medical (6) (10.4) 1 - --- ----- --- ---
Total (24) (6.6) 15 - --- ---- --- --- Undersea Telecommunications
(64) (24.2) - - --- ----- --- --- Total $43 1.6 % $163 $(27) ===
=== ==== ==== Change in Net Sales for the Quarter Ended December
25, 2009 Percentage of versus Net Sales for the Quarter Segment's
Total Ended December 26, 2008 Net Sales for the
----------------------- Quarter Ended Total December 25, 2009 -----
----------------- ($ in millions) Electronic Components (3):
Automotive $302 42.3% 53% DataComm (38) (14.8) 11 Industrial (5)
(2.6) 10 Appliance 23 20.9 7 Computer (5) (4.2) 6 Consumer Devices
(3) (2.7) 6 Other 12 9.8 7 --- --- --- Total 286 17.6 100% --- ----
--- Network Solutions (3): Energy (10) (4.7) 48 Enterprise Networks
1 0.9 26 Service Providers (25) (19.2) 25 Other - - 1 --- --- ---
Total (34) (7.5) 100% --- ---- --- Specialty Products (3):
Aerospace, Defense, and Marine (20) (12.3) 40 Touch Systems 5 6.1
24 Circuit Protection 11 18.6 20 Medical (5) (7.9) 16 --- ---- ---
Total (9) (2.5) 100% --- ---- --- Undersea Telecommunications (64)
(24.2) --- ----- Total $179 6.6% ==== === (1) Represents the change
in net sales resulting from volume and price changes, before
consideration of acquisitions, divestitures, and the impact of
changes in foreign currency exchange rates. Organic net sales
growth is a non-GAAP measure. See description of non-GAAP measures
contained in this release. (2) Represents the change in net sales
resulting from changes in foreign currency exchange rates. (3)
Industry end market information about net sales is presented
consistently with our internal management reporting and may be
periodically revised as management deems necessary. TYCO
ELECTRONICS LTD. NET SALES GROWTH RECONCILIATION (UNAUDITED) Change
in Net Sales for the Quarter Ended December 25, 2009 versus Net
Sales for the Quarter Ended September 25, 2009
--------------------------------------------------------- Organic
(1) Translation(2) Divestiture ----------- --------------
----------- ($ in millions) Electronic Components (3): Automotive
$143 17.1% $35 $- DataComm 24 12.5 3 - Industrial 21 12.6 2 -
Appliance 13 10.9 2 - Computer 6 5.1 1 - Consumer Devices 2 1.6 1 -
Other 21 19.3 5 - --- ---- --- --- Total 230 14.1 49 - --- ---- ---
--- Network Solutions (3): Energy (9) (4.4) 7 (2) Enterprise
Networks (4) (3.6) 3 - Service Providers (9) (8.2) 1 - Other (2)
(24.9) 1 - --- ----- --- --- Total (24) (5.6) 12 (2) --- ---- ---
--- Specialty Products (3): Aerospace, Defense, and Marine (7)
(4.9) 2 - Touch Systems (3) (2.9) 2 - Circuit Protection 2 2.6 1 -
Medical (2) (2.9) 1 - --- ---- --- --- Total (10) (2.7) 6 - ---
---- --- --- Undersea Telecommunications (67) (25.4) - - --- -----
--- --- Total $129 4.8% $67 $(2) ==== === === === Change in Net
Sales for the Quarter Ended December 25, 2009 Percentage of versus
Net Sales for the Quarter Segment's Total Ended September 25, 2009
Net Sales for the ------------------------ Quarter Ended Total
December 25, 2009 ----- ----------------- ($ in millions)
Electronic Components (3): Automotive $178 21.2% 53% DataComm 27
14.1 11 Industrial 23 14.1 10 Appliance 15 12.7 7 Computer 7 6.5 6
Consumer Devices 3 2.9 6 Other 26 23.9 7 --- ---- --- Total 279
17.1 100% --- ---- --- Network Solutions (3): Energy (4) (1.9) 48
Enterprise Networks (1) (0.9) 26 Service Providers (8) (7.1) 25
Other (1) (14.3) 1 --- ----- --- Total (14) (3.2) 100% --- ---- ---
Specialty Products (3): Aerospace, Defense, and Marine (5) (3.4) 40
Touch Systems (1) (1.1) 24 Circuit Protection 3 4.5 20 Medical (1)
(1.7) 16 --- ---- --- Total (4) (1.1) 100% --- ---- --- Undersea
Telecommunications (67) (25.0) --- ----- Total $194 7.2% ==== ===
(1) Represents the change in net sales resulting from volume and
price changes, before consideration of acquisitions, divestitures,
and the impact of changes in foreign currency exchange rates.
Organic net sales growth is a non-GAAP measure. See description of
non-GAAP measures contained in this release. (2) Represents the
change in net sales resulting from changes in foreign currency
exchange rates. (3) Industry end market information about net sales
is presented consistently with our internal management reporting
and may be periodically revised as management deems necessary. TYCO
ELECTRONICS LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO
GAAP FINANCIAL MEASURES For the Quarter Ended December 25, 2009
(UNAUDITED) Adjustment ---------- Restructuring and Other Adjusted
U.S. GAAP Charges, Net (1) (Non-GAAP) (2) ---------
---------------- -------------- ($ in millions, except per share
data) Operating Income: Electronic Components $163 $44 $207 Network
Solutions 20 17 37 Specialty Products 51 - 51 Undersea
Telecommunications 35 2 37 --- --- --- Total $269 $63 $332 ==== ===
==== Operating Margin 9.3% 11.5% === ==== Income Tax Expense $(69)
$(16) $(85) ==== ==== ==== Income from Continuing Operations
Attributable to Tyco Electronics Ltd. $172 $47 $219 ==== === ====
Diluted Earnings per Share from Continuing Operations Attributable
to Tyco Electronics Ltd. $0.37 $0.10 $0.47 ===== ===== ===== (1)
Includes $66 million recorded in net restructuring and other
charges and a $3 million credit recorded in cost of sales. (2) See
description of non-GAAP measures contained in this release. TYCO
ELECTRONICS LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO
GAAP FINANCIAL MEASURES For the Quarter Ended December 26, 2008
(UNAUDITED) Adjustments ----------- Restructuring and Other U.S.
Charges, Other Adjusted GAAP Net(1) Items, Net(2) (Non-GAAP)(3)
---- ------ ------------ ------------- ($ in millions, except per
share data) Operating Income: Electronic Components $(18) $42 $-
$24 Network Solutions 44 19 - 63 Specialty Products 28 14 8 50
Undersea Telecommunications 38 3 - 41 Pre-separation litigation
charges, net (9) - 9 - --- --- --- --- Total $83 $78 $17 $178 ===
=== === ==== Operating Margin 3.1% 6.6% === === Income Tax Expense
$(14) $(23) $(3) $(40) ==== ==== === ==== Income from Continuing
Operations Attributable to Tyco Electronics Ltd. $30 $55 $14 $99
=== === === === Diluted Earnings per Share from Continuing
Operations Attributable to Tyco Electronics Ltd. $0.07 $0.12 $0.03
$0.21 ===== ===== ===== ===== (1) Includes $77 million recorded in
net restructuring and other charges and $1 million recorded in cost
of sales. (2) Consists of $9 million of costs related to the
settlement of pre- separation securities litigation and $8 million
of costs related to a product liability matter from several years
ago recorded in selling, general, and administrative expenses. (3)
See description of non-GAAP measures contained in this release.
TYCO ELECTRONICS LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES For the Quarter Ended September 25, 2009
(UNAUDITED) Adjustments ----------- Restructuring and Other
Retirement Adjusted U.S. Charges, Tax of (Non- GAAP Net (1) Items
(2) Debt GAAP) (3) ---- ------- --------- ---- --------- ($ in
millions, except per share data) Operating Income: Electronic
Components $38 $24 $- $- $62 Network Solutions 37 14 - - 51
Specialty Products 47 4 - - 51 Undersea Telecommunications 54 3 - -
57 --- --- --- --- --- Total $176 $45 $- $- $221 ==== === === ===
==== Operating Margin 6.5% 8.2% === === Income Tax Expense $(1)
$(9) $(46) $- $(56) === === ==== === ==== Income from Continuing
Operations Attributable to Tyco Electronics Ltd. $83 $36 $40 $(19)
$140 === === === ==== ==== Diluted Earnings per Share from
Continuing Operations Attributable to Tyco Electronics Ltd. $0.18
$0.08 $0.09 $(0.04) $0.30 ===== ===== ===== ====== ===== (1)
Includes $46 million recorded in net restructuring and other
charges and a $1 million credit recorded in cost of sales. (2)
Includes an income tax benefit primarily related to proposed
adjustments to prior year tax returns, and charges to other expense
pursuant to the Tax Sharing Agreement with Tyco International and
Covidien. (3) See description of non-GAAP measures contained in
this release. DATASOURCE: Tyco Electronics Ltd. CONTACT: Media
Relations, Sheri Woodruff, Office, +1-610-893-9555, Mobile,
+1-609-933-9243, , or Investor Relations, John Roselli, Office,
+1-610-893-9559, , or Keith Kolstrom, Office, +1-610-893-9551, ,
all of Tyco Electronics Ltd. Web Site:
http://www.tycoelectronics.com/
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