Tyco Posts Q1 Profit

Tyco International reports revenues of $8.9B, up 4% from last year's Q1, but electronics revenues slip 10% due to the telecom slump

January 22, 2003

2 Min Read

PEMBROKE, Bermuda -- Tyco International Ltd. (NYSE-TYC, BSX-TYC, LSE-TYI) reported today that earnings per share for its first quarter were 32 cents, as compared to 47 cents from continuing operations for the same period last year. Revenues were $8.9 billion, up 4% from $8.6 billion in the first quarter last year. Income from continuing operations was $635 million for the quarter as compared with $935 million for the same period last year. Free cash flow was $482 million in the quarter. "Results for the first quarter reflect a base of operations on which we can build during fiscal 2003," said Ed Breen, Tyco's Chairman and Chief Executive Officer. "Given the challenging economic environment in which we are operating and the issues we worked to resolve during the quarter, these results demonstrate the strength of our market positions and the appeal of our products and services." Table 1: Electronics Segment

December 31, 2002

December 31, 2001

Segment revenues

$2,528.3

$2,817.3

Segment profit

$292.6

$525.7

Segment margins

11.6%

18.7%



Revenues decreased 10% due to a significant decline within the telecommunications sector, primarily associated with a decline of $379 million at TyCom, where there were no new third party construction or capacity sales in FY03. These declines were partially offset by acquisitions made in FY02 and favorable fluctuations in foreign currency rates. Additionally, year over year declines in the telecommunication end market of our electronic components business were partially offset by growth in product sales to the automotive industry. Segment profits were negatively impacted by lower operating profits in the telecommunications sector, including operating losses of $65 million at TyCom, compared to profit of $67 million in the year ago period, as well as lower manufacturing volumes in the electronic components business and higher pension expense. Tyco International Ltd.

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