PEMBROKE, Bermuda, Jan. 23 /PRNewswire-FirstCall/ -- Tyco International
Ltd. (NYSE: TYC; BSX: TYC) today announced preliminary financial results
for the first quarter of fiscal 2008. As previously announced, the company
will issue its full first quarter 2008 financial results and hold a
conference call for investors on February 5, 2008.
Preliminary first quarter results included revenue growth of 12% and
organic revenue growth of 6%, which was stronger than previous guidance of
8% revenue growth and organic revenue growth of approximately 5%. Revenue
improved across each of the company's five business segments and was led by
solid year over year increases in Flow Control and ADT Worldwide.
Preliminary operating income in the quarter was $499 million and
operating income before special items was $523 million, an increase of 55%
over the prior year. The company's operating margin was 10.2% and its
operating margin before special items was 10.7%, compared to previous
guidance of approximately 9.0% for the operating margin before special
items. Strong year over year income growth in all segments led by Flow
Control and ADT Worldwide and lower corporate expenses contributed to the
increase in the operating income.
"The first quarter was a good start to 2008. We had strong operational
performance across all of our businesses led by Flow Control and ADT. Based
on our performance this quarter and our outlook for the year, we are
raising our full year earnings per share guidance," said Tyco Chairman and
Chief Executive Officer Ed Breen.
The company is raising its full year guidance for fiscal 2008 diluted
EPS from continuing operations before special items to $2.60-2.70 from
$2.50-2.65. Management will discuss the company's outlook in detail during
its investor conference call and webcast on February 5.
Income Statement Summary
($ millions)
Q1 2008 Q1 2007 % Change
Revenue $4,870 $4,365 12%
Operating Income $499 $256 95%
Operating Margin 10.2% 5.9% --
Special Items* $(24) $(81) --
Operating Income Before Special Items $523 $337 55%
Operating Margin Before Special Items 10.7% 7.7% --
*Primarily separation and restructuring charges
Revenue Growth Reconciliation
($ millions)
% Change
Net Revenue Q1 FY08 $4,870
Net Revenue Q1 FY07 $4,365
------------------------------------------------------------------
Revenue Growth $505 12%
Foreign Currency Impact $(253)
Acquisitions, Divestitures and Other, Net $12
------------------------------------------------------------------
Organic Revenue Growth $264 6%
Investors and analysts can participate in the Feb. 5 conference call as
follows:
-- At Tyco's website: http://investors.tyco.com.
-- By telephone: For both "listen-only" participants and those
participants who wish to take part in the question-and-answer portion
of the call, the telephone dial-in number in the United States is (800)
230-1085. The telephone dial-in number for participants outside the
United States is (612) 332-0107.
-- An audio replay of the conference call will be available beginning at
10:30 a.m. on February 5, 2008 and ending on February 12, 2008. 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 904017.
NON-GAAP MEASURES
"Organic revenue growth," "operating income before special items",
"diluted earnings per share (EPS) from continuing operations before special
items" and "operating margin before special items" are non-GAAP measures
and should not be considered replacements for GAAP results.
Organic revenue growth is a useful measure used by the company to
measure the underlying results and trends in the business. The difference
between reported net revenue growth (the most comparable GAAP measure) and
organic revenue growth (the non-GAAP measure) consists of the impact from
foreign currency, acquisitions and divestitures, and other changes that do
not reflect the underlying results and trends (for example, revenue
reclassifications and changes to the fiscal year). Organic revenue growth
is a useful measure of the company's performance because it excludes items
that: i) are not completely under management's control, such as the impact
of foreign currency exchange; or ii) do not reflect the underlying growth
of the company, such as acquisition and divestiture activity. It may be
used as a component of the company's compensation programs. The limitation
of this measure is that it excludes items that have an impact on the
company's revenue. This limitation is best addressed by using organic
revenue growth in combination with the GAAP numbers.
The company has presented its operating income and operating margin
before special items and has forecast its EPS from continuing operations
before special items. Special Items include charges and gains related to
divestitures, acquisitions, restructurings (including transaction costs
related to the separations of Tyco Electronics and Covidien into separate
public companies), and other income or charges that may mask the underlying
operating results and/or business trends of the company or business
segment, as applicable. The company utilizes operating income, EPS and
operating margin before special items to assess overall operating
performance, segment level core operating performance and to provide
insight to management in evaluating overall and segment operating plan
execution and underlying market conditions. They are also significant
components in the company's incentive compensation plans. Operating income,
EPS and operating margin before special items are useful measures for
investors because they permit more meaningful comparisons of the company's
underlying operating results and business trends between periods. The
difference between operating income and operating margin before special
items and operating income and operating margin (the most comparable GAAP
measures) consists of the impact of charges and gains related to
divestitures, acquisitions, restructurings (including transaction costs
related to the separations of Tyco Electronics and Covidien into separate
public companies), and other income or charges that may mask the underlying
operating results and/or business trends. The limitation of these measures
is that they exclude the impact (which may be material) of items that
increase or decrease the company's reported operating income, EPS and
operating margin. This limitation is best addressed by using operating
income and operating margin before special items in combination with the
most comparable GAAP measures in order to better understand the amounts,
character and impact of any increase or decrease on reported results.
The company presents its EPS from continuing operations forecast before
special items to give investors a perspective on the underlying business
results. Because the company often cannot predict the amount and timing of
unusual or special items and associated charges or gains that may be
recorded in the company's financial statements, it does not present
forecasts that include the impact of those items. In addition, the EPS from
continuing operations before special items excludes the impact of
discontinued operations which may mask underlying operating results.
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. 28, 2007.
Tyco International (NYSE: TYC) is a diversified, global company that
provides vital products and services to customers in more than 60
countries. Tyco is a leading provider of security products and services,
fire protection and detection products and services, valves and controls,
and other industrial products. Tyco had 2007 revenue of more than $18
billion and has 118,000 employees worldwide. More information on Tyco can
be found at http://www.tyco.com.
SOURCE Tyco International Ltd.
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Related links:
http://www.tyco.com
http://investors.tyco.com
CONTACT:
Media, Paul Fitzhenry, +1-609-720-4261,
pfitzhenry@tyco.com, or Investor Relations, Ed Arditte,
+1-609-720-4621, or Karen Chin, +1-609-720-4398, all of Tyco
International Ltd.
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