EX-99.1 2 a10-2329_1ex99d1.htm EX-99.1

Exhibit 99.1

 

News Release

 

 

 

FOR IMMEDIATE RELEASE

 

Contacts:

Media Relations:

Investor Relations:

 

Sheri Woodruff

John Roselli

 

610-893-9555 Office

610-893-9559 Office

 

609-933-9243 Mobile

john.roselli@tycoelectronics.com

 

swoodruff@tycoelectronics.com

Keith Kolstrom

 

 

610-893-9551 Office

 

 

keith.kolstrom@tycoelectronics.com

 

TYCO ELECTRONICS REPORTS FISCAL FIRST QUARTER RESULTS

 

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, 2010 — 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.

 

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“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.

 

 

 

 

 

 

 

 

 

% Change

 

% Change

 

($ in millions)

 

Dec 25, 2009

 

Sept 25, 2009

 

Dec 26, 2008

 

Sequential

 

YoY

 

Net Sales

 

$

2,892

 

$

2,698

 

$

2,713

 

7

%

7

%

Operating Income

 

$

269

 

$

176

 

$

83

 

53

%

224

%

Restructuring and Other Changes

 

$

(63

)

$

(45

)

$

(78

)

 

 

 

 

Other Items

 

$

0

 

$

0

 

$

(17

)

 

 

 

 

Adjusted Operating Income

 

$

332

 

$

221

 

$

178

 

50

%

87

%

Operating Margin

 

9.3

%

6.5

%

3.1

%

 

 

 

 

Adjusted Operating Margin

 

11.5

%

8.2

%

6.6

%

 

 

 

 

 

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

 

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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

 

 

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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

 

4



 

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

 

5



 

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.

 

6



 

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.

 

# # #

 

7



 

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 25,

 

September 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 $41 and $48, respectively

 

2,033

 

1,975

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment’s Total

 

 

 

Change in Net Sales for the Quarter Ended December 25, 2009

 

Net Sales for the

 

 

 

versus Net Sales for the Quarter Ended December 26, 2008

 

Quarter Ended

 

 

 

Organic (1)

 

Translation (2)

 

Divestiture

 

Total

 

December 25, 2009

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

Electronic Components (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive

 

$

217

 

30.2

%

$

85

 

$

 

$

302

 

42.3

%

53

%

DataComm

 

(35

)

(14.2

)

9

 

(12

)

(38

)

(14.8

)

11

 

Industrial

 

(15

)

(8.4

)

10

 

 

(5

)

(2.6

)

10

 

Appliance

 

18

 

15.4

 

5

 

 

23

 

20.9

 

7

 

Computer

 

(5

)

(5.3

)

1

 

(1

)

(5

)

(4.2

)

6

 

Consumer Devices

 

10

 

8.0

 

1

 

(14

)

(3

)

(2.7

)

6

 

Other

 

8

 

4.9

 

5

 

(1

)

12

 

9.8

 

7

 

Total

 

198

 

12.2

 

116

 

(28

)

286

 

17.6

 

100

%

Network Solutions (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy

 

(28

)

(13.1

)

17

 

1

 

(10

)

(4.7

)

48

 

Enterprise Networks

 

(6

)

(5.6

)

7

 

 

1

 

0.9

 

26

 

Service Providers

 

(33

)

(25.4

)

8

 

 

(25

)

(19.2

)

25

 

Other

 

 

(1.8

)

 

 

 

 

1

 

Total

 

(67

)

(14.8

)

32

 

1

 

(34

)

(7.5

)

100

%

Specialty Products (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace, Defense, and Marine

 

(26

)

(15.7

)

6

 

 

(20

)

(12.3

)

40

 

Touch Systems

 

 

0.4

 

5

 

 

5

 

6.1

 

24

 

Circuit Protection

 

8

 

13.9

 

3

 

 

11

 

18.6

 

20

 

Medical

 

(6

)

(10.4

)

1

 

 

(5

)

(7.9

)

16

 

Total

 

(24

)

(6.6

)

15

 

 

(9

)

(2.5

)

100

%

Undersea Telecommunications

 

(64

)

(24.2

)

 

 

(64

)

(24.2

)

 

 

Total

 

$

43

 

1.6

%

$

163

 

$

(27

)

$

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment’s Total

 

 

 

Change in Net Sales for the Quarter Ended December 25, 2009

 

Net Sales for the

 

 

 

versus Net Sales for the Quarter Ended September 25, 2009

 

Quarter Ended

 

 

 

Organic (1)

 

Translation (2)

 

Divestiture

 

Total

 

December 25, 2009

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

Electronic Components (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive

 

$

143

 

17.1

%

$

35

 

$

 

$

178

 

21.2

%

53

%

DataComm

 

24

 

12.5

 

3

 

 

27

 

14.1

 

11

 

Industrial

 

21

 

12.6

 

2

 

 

23

 

14.1

 

10

 

Appliance

 

13

 

10.9

 

2

 

 

15

 

12.7

 

7

 

Computer

 

6

 

5.1

 

1

 

 

7

 

6.5

 

6

 

Consumer Devices

 

2

 

1.6

 

1

 

 

3

 

2.9

 

6

 

Other

 

21

 

19.3

 

5

 

 

26

 

23.9

 

7

 

Total

 

230

 

14.1

 

49

 

 

279

 

17.1

 

100

%

Network Solutions (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy

 

(9

)

(4.4

)

7

 

(2

)

(4

)

(1.9

)

48

 

Enterprise Networks

 

(4

)

(3.6

)

3

 

 

(1

)

(0.9

)

26

 

Service Providers

 

(9

)

(8.2

)

1

 

 

(8

)

(7.1

)

25

 

Other

 

(2

)

(24.9

)

1

 

 

(1

)

(14.3

)

1

 

Total

 

(24

)

(5.6

)

12

 

(2

)

(14

)

(3.2

)

100

%

Specialty Products (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace, Defense, and Marine

 

(7

)

(4.9

)

2

 

 

(5

)

(3.4

)

40

 

Touch Systems

 

(3

)

(2.9

)

2

 

 

(1

)

(1.1

)

24

 

Circuit Protection

 

2

 

2.6

 

1

 

 

3

 

4.5

 

20

 

Medical

 

(2

)

(2.9

)

1

 

 

(1

)

(1.7

)

16

 

Total

 

(10

)

(2.7

)

6

 

 

(4

)

(1.1

)

100

%

Undersea Telecommunications

 

(67

)

(25.4

)

 

 

(67

)

(25.0

)

 

 

Total

 

$

129

 

4.8

%

$

67

 

$

(2

)

$

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

 

Other Items,

 

Adjusted

 

 

 

U.S. GAAP

 

Charges, Net (1)

 

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

 

Tax

 

Retirement

 

Adjusted

 

 

 

U.S. GAAP

 

Charges, Net (1)

 

Items (2)

 

of Debt

 

(Non-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.