Tyco Reports Third Quarter Earnings from Continuing Operations of
$0.56 Per Share * Results Include Income of $0.06 Per Share
Consisting of a $0.15 Per Share Net Gain From Divestitures
Partially Offset by $0.09 Per Share of Charges for Early Retirement
of Debt * Cash Flow From Operating Activities of $1.6 Billion; Free
Cash Flow of $1.25 Billion * $1.5 Billion Share Repurchase Program
Announced PEMBROKE, Bermuda, Aug. 2 /PRNewswire-FirstCall/ -- Tyco
International Ltd. (NYSE:TYC)(BSX:TYC) today reported diluted GAAP
earnings per share (EPS) from continuing operations of $0.56 for
the third fiscal quarter of 2005, compared with $0.43 in the third
fiscal quarter of 2004. Included in EPS from continuing operations
was income totaling $0.06 per share, consisting of a $0.15 per
share net gain from divestiture activity which was partially offset
by charges of $0.09 per share for early retirement of debt. Last
year's third quarter results included net charges of $0.02 per
share related to the early retirement of debt, as well as
restructuring and divestiture programs. Revenue in the third
quarter grew 3 percent to $10.6 billion, with organic revenue
growth of 3 percent. Cash flow from operating activities was $1.6
billion, and the company generated free cash flow of $1.25 billion
in the quarter. "Tyco's third quarter results reflect our ongoing
efforts to build the operating foundation of this company," said
Chairman and Chief Executive Officer Ed Breen. "While we have made
a great deal of progress, this is a long-term process and there is
much more to be accomplished." Organic revenue growth and free cash
flow are non-GAAP financial measures and are described below. For a
reconciliation of these non-GAAP measures, see the attached tables.
HIGHLIGHTS * Tyco's Board of Directors approved a $1.5 billion
share repurchase program. * As part of its third quarter debt
reduction activities, the company used $620 million of cash to
repurchase $448 million of convertible debt securities. This action
reduced Tyco's fully diluted shares outstanding by approximately 20
million shares and generated a $179 million, or $0.09 per share,
charge in the third quarter, for which no tax benefit was
available. In total, this program has reduced diluted shares
outstanding by 96 million shares since the fourth quarter of 2004.
* Tyco acquired Vivant Medical Inc., a leading developer of
microwave ablation medical technology. Vivant's VivaWave(TM)
Microwave Ablation System, which will be used in the treatment of
various types of cancer, is an excellent strategic fit with Tyco's
current offering in this market. * On June 30, the company closed
the previously announced sale of the Tyco Global Network for cash
of $130 million and the assumption of certain liabilities. As a
result of this transaction, Tyco recorded a pre-tax gain on the
sale of $307 million ($331 million after-tax), or $0.15 per share.
SEGMENT RESULTS The financial results presented in the tables below
are in accordance with GAAP. All dollar amounts are pretax and
stated in millions. All comparisons are to the quarter ended June
30, 2004, unless otherwise indicated. Prior period amounts have
been reclassified to reflect the impact of discontinued operations
accounting. Fire & Security July 1, 2005 June 30, 2004 $ Change
% Change Revenue $2,853 $2,858 ($5) 0% Operating Income $301 $276
$25 9% Operating Margin 10.6% 9.7% Revenue declined $5 million,
with essentially flat organic revenue growth. The year-over-year
comparison was adversely impacted by $81 million of revenue from
divested businesses. Worldwide Security revenue growth was flat
organically, reflecting modest growth in North America, largely
offset by a revenue decline in Europe. Worldwide Fire also had
relatively flat organic revenue growth. Operating income increased
by $25 million primarily due to lower restructuring costs in the
third quarter. An increase in selling expenses was offset by a
reduction in general and administrative costs. Operating income
also included a $6 million charge related to divestitures.
Electronics July 1, 2005 June 30, 2004 $ Change % Change Revenue
$3,120 $3,058 $62 2% Operating Income $512 $464 $48 10% Operating
Margin 16.4% 15.2% Revenue increased $62 million, or 2 percent,
with organic revenue growth of 3 percent. The year-over-year
comparison was adversely impacted by $87 million of revenue from
divested businesses. Growth in connector and cable assemblies was
driven by strength in computer and consumer electronics, energy,
aerospace, and wireless communications. Continued weakness in Power
Systems and Printed Circuit Boards partially offset this growth.
Operating income increased $48 million, and the operating margin
improved to 16.4 percent. Operationally, margin improvement
benefited from higher revenue and increased operating efficiencies,
partially offset by 70 basis points of continued cost escalation in
metals and other commodities. Additionally, the settlement of
certain legal issues increased the operating margin in the quarter
by 30 basis points. Healthcare July 1, 2005 June 30, 2004 $ Change
% Change Revenue $2,440 $2,260 $180 8% Operating Income $678 $615
$63 10% Operating Margin 27.8% 27.2% Revenue increased $180
million, or 8 percent. Organic revenue growth of 7 percent was
driven by strong international sales across all regions, continued
strength in the Surgical business, and new product introductions in
Respiratory and Pharmaceutical. This growth was partially offset by
modest revenue declines in Retail and Medical. Operating income
increased $63 million due to increased volume and continued
improvement in operating efficiency, which helped offset commodity
cost pressures. Operating income further benefited from an improved
sales mix. Engineered Products & Services July 1, 2005 June 30,
2004 $ Change % Change Revenue $1,679 $1,608 $71 4% Operating
Income $178 $225 ($47) (21%) Operating Margin 10.6% 14.0% Revenue
increased $71 million, or 4 percent. Organic revenue growth was 2
percent, led by double-digit growth at Flow Control and Fire &
Building Products. Declines at Electrical & Metal Products and
Infrastructure Services partially offset this growth. Operating
income decreased $47 million, which included a $109 million decline
at Electrical & Metal Products due to higher steel raw material
costs, reduced steel selling prices, and lower volumes. The decline
was partially offset by operating income and margin improvements in
the segment's other business units. Plastics & Adhesives July
1, 2005 June 30, 2004 $ Change % Change Revenue $459 $435 $24 6%
Operating Income $20 $38 ($18) (47%) Operating Margin 4.4% 8.7%
Revenue increased $24 million, or 6 percent, with essentially flat
organic revenue growth. The revenue increase in the Plastics
business was driven by higher selling prices, partially offset by
revenue declines in A&E and Ludlow Coated Products. Operating
income in the third quarter decreased $18 million versus last year
due to declines in A&E and Ludlow Coated Products. As
previously announced, Tyco is actively pursuing the divestiture of
the Plastics & Adhesives business segment. OTHER ITEMS * The
third quarter effective tax rate was 21.4 percent. The tax rate was
decreased by 3.6 percentage points due to benefits realized from
the previously discussed divestiture gain partially offset by
charges for early retirement of debt. * The company's
debt-to-capital ratio improved to 29.1 percent at quarter- end
versus 35.6 percent at the end of fiscal 2004. * During the
quarter, the company reduced debt by $1.3 billion to $13.1 billion,
and reduced net debt to $10.5 billion. OUTLOOK For the fourth
quarter of 2005, the company expects to achieve EPS from continuing
operations excluding special items of $0.45 to $0.47. On a
quarter-sequential basis, EPS from continuing operations excluding
special items is expected to be lower as a result of lower
operating income in Engineered Products & Services primarily
due to dynamics in the steel market, lower sequential revenue and
the resulting impact on operating income in Electronics, and a
modestly higher tax rate for the company. For the full- year, this
would result in EPS from continuing operations excluding special
items of $1.85 to $1.87. The company expects full-year cash from
operating activities of $6.0 to $6.4 billion and free cash flow of
$4.2 to $4.6 billion. With respect to fiscal year 2006, the company
expects EPS before special items to increase by approximately 10
percent over full-year 2005 results. This outlook reflects a
continuation of growth trends the company has been experiencing in
the Electronics and Fire & Security segments and the impact
this has on operating margins. The company further expects that
2006 free cash flow will exceed net income excluding special items.
EPS from continuing operations excluding special items and net debt
are non-GAAP financial measures and are described below. ABOUT TYCO
INTERNATIONAL Tyco International Ltd. is a global, diversified
company that provides vital products and services to customers in
five business segments: Fire & Security, Electronics,
Healthcare, Engineered Products & Services, and Plastics &
Adhesives. With 2004 revenue of $40 billion, Tyco employs
approximately 250,000 people worldwide. More information on Tyco
can be found at http://www.tyco.com/. CONFERENCE CALL AND WEBCAST
The company will hold a conference call for investors today
beginning at 8:30 a.m. ET. The call can be accessed in three ways:
* At Tyco's website: http://investors.tyco.com/. A replay of the
call will be available through Aug. 16, 2005 at the same website. *
By telephone dial-in to participate in a "listen-only" mode. The
telephone dial-in number for participants in the United States is
(888) 428-4470. The telephone dial-in number for participants
outside the United States is (612) 332-0228. The access code for
all "listen-only" callers is 788520. Investors who do not intend to
ask questions should dial this number. * By telephone dial-in with
the capability to participate in the question- and-answer portion
of the call. The telephone dial-in number for participants in the
United States is (888) 423-3276. The telephone dial-in number for
participants outside the United States is (612) 332- 0630. An audio
replay of the conference call will be available beginning at 12:00
p.m. on Aug. 2, 2005 and ending at 11:59 p.m. on Aug. 9, 2005. The
dial-in number for participants in the United States is (800)
475-6701. For participants outside the United States the dial-in
number is (320) 365-3844. The replay access code for all callers is
788518. NON-GAAP MEASURES "EPS from continuing operations excluding
special items," "free cash flow" (FCF), "organic revenue growth"
and "net debt" are non-GAAP measures and should not be considered
replacements for GAAP results. The company has forecast its EPS
from continuing operations results excluding special items related
to divestitures, early retirement of debt, and other income or
charges that may mask the underlying results and trends and make it
difficult to give investors additional perspective on underlying
business results. Because the company cannot predict the amount and
timing of such items and the associated charges or gains that will
be taken, it is difficult to include the impact of those items in
the forecast. The company has forecast 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. 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 is also 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, * acquisition of customer
accounts (ADT dealer program), * cash paid for purchase accounting
and holdback/earn-out liabilities and, * voluntary pension
contributions. 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 impact from
the sale of accounts receivable programs and voluntary pension
contributions is 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/earn-out 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 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 shows 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. "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, or revenue reclassification.
It is also 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.
Net debt is a non-GAAP measure and should not be considered a
replacement for GAAP results. Net debt is total debt (the most
comparable GAAP measure) minus cash and cash equivalents.
Management believes net debt is an important measure of liquidity,
which it uses as a tool to measure the company's ability to meet
its future debt obligations. Cash and cash equivalents are
subtracted from the GAAP measure because they could be used to
reduce our debt obligations. See the accompanying table to this
press release for the reconciliation of net debt. The limitation
associated with using net debt is that it subtracts cash items and
therefore may imply that there is less company debt than the most
comparable GAAP measure indicates and may include certain cash
items that are not readily available for repaying debt. This
limitation is best addressed by using net debt in combination with
total debt because net debt may be significantly lower than the
GAAP measure. Net debt should be used in conjunction with other
GAAP 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 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 following subjects:
future financial condition and operating results. 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. 30, 2004, and Quarterly Report on
Form 10-Q for the quarterly period ended April 1, 2005. TYCO
INTERNATIONAL LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in
millions, except per share data) (Unaudited) Quarter Ended Nine
Months Ended July 1, June 30, July 1, June 30, 2005 2004 2005 2004
Net revenue $10,562 $10,225 $31,083 $29,711 Cost of sales 6,967
6,553 20,516 19,293 Selling, general and administrative expenses
2,015 2,090 6,019 6,174 Goodwill impairment - - 162 - Restructuring
and long-lived asset impairment charges, net 2 54 54 134 (Gains)
losses and impairments on divestitures, net (301) (3) (284) 82
Operating income 1,879 1,531 4,616 4,028 Interest income 24 16 92
56 Interest expense (199) (224) (626) (715) Other expense, net
(179) (36) (915) (38) Income from continuing operations before
income taxes and minority interest 1,525 1,287 3,167 3,331 Income
taxes (326) (359) (1,002) (886) Minority interest (2) (3) (6) (11)
Income from continuing operations 1,197 925 2,159 2,434 Loss from
discontinued operations, net of income taxes (4) (2) (65) (9) Net
income $1,193 $923 $2,094 $2,425 Basic earnings per common share:
Income from continuing operations $0.59 $0.46 $1.07 $1.22 Loss from
discontinued operations - - (0.03) (0.01) Net income $0.59 $0.46
$1.04 $1.21 Diluted earnings per common share: Income from
continuing operations $0.56 $0.43 $1.02 $1.13 Loss from
discontinued operations - - (0.03) - Net income $0.56 $0.43 $0.99
$1.13 Weighted-average number of shares outstanding: Basic 2,015
2,002 2,011 1,999 Diluted 2,149 2,222 2,179 2,222 Income
Reconciliation for Diluted EPS: Income from continuing operations
$1,197 $925 $2,159 $2,434 Add back of interest expense for
convertible debt 16 27 61 86 Income from continuing operations,
giving effect to dilutive adjustments 1,213 952 2,220 2,520 Loss
from discontinued operations (4) (2) (65) (9) Net income, giving
effect to dilutive adjustments $1,209 $950 $2,155 $2,511 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 30, 2004 and Quarterly Reports on Form 10-Q for the
quarterly periods ended December 31, 2004 and April 1, 2005. TYCO
INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions) (Unaudited)
Quarter Ended July 1, June 30, 2005 2004 NET REVENUE Fire and
Security $2,853 $2,858 Electronics 3,120 3,058 Healthcare 2,440
2,260 Engineered Products and Services 1,679 1,608 Plastics and
Adhesives 459 435 Corporate and Other 11 6 Total Net Revenue
$10,562 $10,225 OPERATING INCOME & MARGIN Fire and Security
$301 10.6% $276 9.7% Electronics 512 16.4% 464 15.2% Healthcare 678
27.8% 615 27.2% Engineered Products and Services 178 10.6% 225
14.0% Plastics and Adhesives 20 4.4% 38 8.7% Corporate and Other
190 (87) Operating Income & Margin $1,879 17.8% $1,531 15.0%
TYCO INTERNATIONAL LTD. RESULTS OF SEGMENTS (in millions)
(Unaudited) Nine Months Ended July 1, June 30, 2005 2004 NET
REVENUE Fire and Security $8,609 $8,553 Electronics 9,132 8,742
Healthcare 7,128 6,724 Engineered Products and Services 4,799 4,386
Plastics and Adhesives 1,386 1,289 Corporate and Other 29 17 Total
Net Revenue $31,083 $29,711 OPERATING INCOME & MARGIN Fire and
Security $895 10.4% $741 8.7% Electronics 1,422 15.6% 1,268 14.5%
Healthcare 1,948 27.3% 1,734 25.8% Engineered Products and Services
515 10.7% 462 10.5% Plastics and Adhesives (144) -10.4% 65 5.0%
Corporate and Other (20) (242) Operating Income & Margin $4,616
14.9% $4,028 13.6% TYCO INTERNATIONAL LTD. CONDENSED CONSOLIDATED
BALANCE SHEETS (in millions) (Unaudited) (Unaudited) September July
1, April 1, 30, 2005 2005 2004 Current Assets: Cash and cash
equivalents $2,666 $2,940 $4,467 Accounts receivable, net 7,155
7,176 6,463 Inventories 4,565 4,747 4,365 Prepaid expenses and
other current assets 2,589 2,606 2,635 Assets held for sale 28 182
615 Total current assets 17,003 17,651 18,545 Property, plant and
equipment, net 9,475 9,649 9,635 Goodwill 25,234 25,488 25,510
Intangible assets, net 5,092 5,200 5,335 Other assets 4,773 4,784
4,642 Total Assets $61,577 $62,772 $63,667 Current Liabilities:
Loans payable and current maturities of long-term debt $1,129
$1,913 $2,116 Accounts payable 2,943 2,929 2,698 Accrued and other
current liabilities 5,686 5,606 5,815 Liabilities held for sale 3
297 523 Total current liabilities 9,761 10,745 11,152 Long-term
debt 12,002 12,497 14,617 Other liabilities 7,710 7,842 7,538 Total
liabilities 29,473 31,084 33,307 Minority interest 59 59 68
Shareholders' equity 32,045 31,629 30,292 Total Liabilities and
Shareholders' Equity $61,577 $62,772 $63,667 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 30, 2004 and Quarterly Report on Form 10-Q for the
quarterly periods ended December 31, 2004 and April 1, 2005. TYCO
INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (in
millions) (Unaudited) Quarter Ended Nine Months Ended July 1, June
30, July 1, June 30, 2005 2004 2005 2004 Cash Flows from Operating
Activities: Net income $1,193 $923 $2,094 $2,425 Loss from
discontinued operations 4 2 65 9 Income from continuing operations
1,197 925 2,159 2,434 Adjustments to reconcile net cash provided by
operating activities: Non-cash restructuring and long- lived asset
impairment charges, net (13) 7 25 21 (Gains) losses and impairments
on divestitures, net (294) (7) (281) 78 Goodwill impairment - - 162
- Depreciation and amortization 528 549 1,606 1,643 Deferred income
taxes 30 47 102 224 Provision for losses on accounts receivable and
inventory 63 74 194 246 Loss on the retirement of debt 179 38 908
43 Other non-cash items 33 68 91 105 Changes in assets and
liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net (179) (101) (742) (174) Decrease in sale
of accounts receivable - (461) (15) (533) Inventories 80 (119)
(293) (260) Accounts payable 68 (16) 228 (35) Accrued and other
liabilities 14 210 (44) 192 Other (116) (92) 8 (25) Net cash
provided by operations 1,590 1,122 4,108 3,959 Cash Flows from
Investing Activities: Capital expenditures, net (323) (236) (935)
(673) Acquisition of businesses, net of cash acquired (5) - (15)
(14) Acquisition of customer accounts (ADT dealer program) (92)
(56) (227) (187) Purchase accounting and holdback/earn-out
liabilities (6) (11) (30) (83) Divestiture of businesses, net of
cash retained by businesses sold 121 46 303 145 (Increase) decrease
in investments (37) 410 (153) 393 Decrease in restricted cash 2 112
5 303 Other (23) (18) (27) (12) Net cash (used in) provided by
investing activities (363) 247 (1,079) (128) Cash Flows from
Financing Activities: Net repayments of debt (1,365) (490) (4,522)
(4,020) Proceeds from exercise of share options 53 66 171 125
Dividends paid (202) (25) (427) (75) Other (3) - (20) (21) Net cash
used in financing activities (1,517) (449) (4,798) (3,991) Effect
of currency translation on cash (15) (5) 33 26 Cash flows from
discontinued operations 31 7 (65) (30) Net (decrease) increase in
cash and cash equivalents (274) 922 (1,801) (164) Cash and cash
equivalents at beginning of period 2,940 3,100 4,467 4,186 Cash and
cash equivalents at end of period $2,666 $4,022 $2,666 $4,022
Reconciliation to "Free Cash Flow": Net cash provided by operating
activities $1,590 $1,122 $4,108 $3,959 Decrease in sale of accounts
receivable - 461 15 533 Capital expenditures, net (323) (236) (935)
(673) Acquisition of customer accounts (ADT dealer program) (92)
(56) (227) (187) Cash paid for purchase accounting and
holdback/earn-out liabilities (6) (11) (30) (83) Voluntary pension
contributions 82 173 82 173 Free Cash Flow $1,251 $1,453 $3,013
$3,722 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 July 1, 2005 Foreign Acquisition / Net
Revenue Currency Divestiture Fire and Security $2,853 -0.2% $70
2.4% $(81) -2.8% Electronics 3,120 2.0% 74 2.4% (87) -3.0%
Healthcare 2,440 8.0% 36 1.6% (4) -0.1% Engineered Products and
Services 1,679 4.4% 48 3.0% (3) -0.2% Plastics and Adhesives 459
5.5% 3 0.7% 3 0.6% Corporate and Other 11 NM - NM 5 NM Total Net
Revenue $10,562 3.3% $231 2.3% $(167) -1.7% TYCO INTERNATIONAL LTD.
ORGANIC REVENUE GROWTH RECONCILIATION (in millions) (Unaudited)
Quarter Ended July 1, 2005 Net Revenue Organic for the Revenue
Quarter Ended Other Growth June 30, 2004 Fire and Security $- 0.0%
$6 0.2% $2,858 Electronics (18)(1) -0.6% 93 3.2% 3,058 Healthcare -
0.0% 148 6.5% 2,260 Engineered Products and Services - 0.0% 26 1.6%
1,608 Plastics and Adhesives 20 (2) 4.6% (2) -0.4% 435 Corporate
and Other - NM - NM 6 Total Net Revenue $2 0.0% $271 2.7% $10,225
Nine Months Ended July 1, 2005 Foreign Acquisition / Net Revenue
Currency Divestiture Fire and Security $8,609 0.7% $244 2.9% $(245)
-2.9% Electronics 9,132 4.5% 269 3.1% (260) -3.0% Healthcare 7,128
6.0% 130 1.9% (16) -0.2% Engineered Products and Services 4,799
9.4% 139 3.2% (12) -0.3% Plastics and Adhesives 1,386 7.5% 9 0.7% 4
0.2% Corporate and Other 29 NM - NM 12 NM Total Net Revenue $31,083
4.6% $791 2.7% $(517) -1.9% Nine Months Ended July 1, 2005 Net
Revenue Organic for the Nine Revenue Months Ended Other Growth June
30, 2004 Fire and Security $- 0.0% $57 0.7% $8,553 Electronics 71
(1) 0.8% 310 3.6% 8,742 Healthcare - 0.0% 290 4.3% 6,724 Engineered
Products and Services (18)(3) -0.5% 304 7.0% 4,386 Plastics and
Adhesives 59 (2) 4.7% 25 1.9% 1,289 Corporate and Other - NM - NM
17 Total Net Revenue $112 0.4% $986 3.4% $29,711 (1) Effective
October 1, 2004, Tyco changed its fiscal year from a calendar year
to a 52/53-week year and conformed the closing periods of certain
subsidiaries. (2) Amounts relate to a reclassification of customer
reimbursed freight costs from revenue to cost of goods sold. (3)
Amount relates to the deconsolidation of several joint ventures as
a result of the adoption of FIN 46R during the second quarter of
fiscal 2004. NOTE: Organic revenue growth is a non-GAAP measure.
See description of non-GAAP measures contained in this release.
TYCO INTERNATIONAL LTD. NET DEBT RECONCILIATION (in millions)
(Unaudited) Quarter Ended Nine Months Ended July 1, 2005 July 1,
2005 Total debt at beginning of period $14,410 $16,733 Net debt
repayments (1,193) (3,642) Currency translation adjustments on debt
(136) (13) Other 50 53 Total debt at end of period 13,131 13,131
Less: cash and cash equivalents at end of period (2,666) (2,666)
Net debt at end of period $10,465 $10,465 NOTE: Net debt is a
non-GAAP measure. See description of non-GAAP measures contained in
this release. TYCO INTERNATIONAL LTD. CHARGES SUMMARY (in millions)
(Unaudited) For the Quarter Ended July 1, 2005 Engineered Products
Plastics Fire and and and Security Electronics Healthcare Services
Adhesives Income GAAP $301 $512 $678 $178 $20 Divestiture
Losses/(Gains) 6 - - - - Debt Retirement - - - - - For the Nine
Months Ended July 1, 2005 Engineered Products Plastics Fire and and
and Security Electronics Healthcare Services Adhesives Income
(Loss) GAAP $895 $1,422 $1,948 $515 ($144) Divestiture
Losses/(Gains) 12 - 8 (1) - Debt Retirement - - - - - Impairment
Charges - - - - 202 SEC Investigation - - - - - TYCO INTERNATIONAL
LTD. CHARGES SUMMARY (in millions) (Unaudited) For the Quarter
Ended July 1, 2005 Corporate Interest Other and Operating Expense,
Expense, Income Other Income net net Taxes Income GAAP $190 $1,879
($175) ($179) ($326) Divestiture Losses/(Gains) (307) (301) - -
(25) Debt Retirement - - - 179 - For the Nine Months Ended July 1,
2005 Interest Other Corporate Operating Expense, Expense, Income
and Other Income net net Taxes Income (Loss) GAAP ($20) $4,616
($534) ($915) ($1,002) Divestiture Losses / (Gains) (300) (281) - -
(31) Debt Retirement - - - 908 - Impairment Charges - 202 - - (21)
SEC Investigation 50 50 - - - TYCO INTERNATIONAL LTD. CHARGES
SUMMARY (in millions) (Unaudited) For the Quarter Ended July 1,
2005 Income Diluted EPS Add back from from Convertible Minority
Continuing Continuing Interest Interest Operations Operations
Expense Income GAAP ($2) $1,197 $0.564 $16 Divestiture
Losses/(Gains) - (326) ($0.152) - Debt Retirement - 179 $0.083 -
Diluted Shares Outstanding 2,149 For the Nine Months Ended July 1,
2005 Income Diluted EPS Add back from from Convertible Minority
Continuing Continuing Interest Interest Operations Operations
Expense Income (Loss) GAAP ($6) $2,159 $1.019 $61 Divestiture
Losses/(Gains) - (312) ($0.143) - Debt Retirement - 908 $0.417 -
Impairment Charges - 181 $0.083 - SEC Investigation - 50 $0.023 -
Diluted Shares Outstanding 2,179 DATASOURCE: Tyco International
Ltd. CONTACT: Marty Dauer, Media Relations, +1-609-720-4385, or Ed
Arditte, Investor Relations, +1-609-720-4621, or John Roselli,
Investor Relations, +1- 609-720-4624, all of Tyco International
Ltd. Web site: http://www.tyco.com/ Company News On-Call:
http://www.prnewswire.com/comp/897850.html
Copyright