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Tyco Reports Q1

SCHAFFHAUSEN, Switzerland — Tyco Electronics Ltd. (NYSE: TEL) today reported results for the fiscal first quarter ended Dec. 24, 2010. The company reported a net sales increase of 11 percent year-over-year, and 2 percent sequentially, to $3.2 billion. Earnings Per Share from Continuing Operations (GAAP EPS) were $0.60 for the quarter, compared to $0.37 in the prior-year period. Included in the GAAP EPS were $0.13 per share of ADC acquisition-related charges and $0.01 per share of restructuring charges. This compares to $0.10 per share of restructuring charges in the prior-year quarter. Adjusted EPS were $0.73 in the quarter, up 55 percent compared to $0.47 in the prior-year quarter. In the fiscal first quarter, the acquisition of ADC contributed $51 million of revenues and had no impact on adjusted EPS.

“We are off to a good start to our fiscal year with strong first quarter results and the completion of the acquisition of ADC in December,” said Tyco Electronics Chief Executive Officer Tom Lynch. “Sales were up 11 percent and adjusted EPS of $0.73 were up 55 percent over the prior year. Orders grew 7 percent in the quarter and our book-to-bill ratio was 1.03, excluding our SubCom business, reflecting strength across most of our end markets. We are excited about completing the acquisition of ADC, which positions TE as a world leader in the rapidly expanding broadband connectivity market.”

RAISING 2011 OUTLOOK

“For the full year, we expect revenue growth of 15 to 18 percent and adjusted EPS growth of 20 to 26 percent,” Lynch said. “The sales growth reflects approximately $1 billion related to the ADC acquisition and the continued momentum we expect in the majority of the end markets we serve, especially automotive, energy, and telecom. We have increased our full year adjusted EPS outlook to reflect the accretion of the ADC acquisition and our strong first quarter performance.”

For the second quarter, the company expects net sales of $3.45 to $3.55 billion, an increase of 17 to 20 percent over the prior-year period. GAAP EPS are expected to be $0.60 to $0.64, including ADC acquisition-related charges of $0.10. Adjusted EPS are expected to be $0.70 to $0.74, up 9 to 16 percent compared to adjusted EPS of $0.64 in the prior-year period. Approximately $280 million of the expected sales growth and $0.02 per share of adjusted EPS is due to the impact of the ADC acquisition.

For the full fiscal year, which includes 53 weeks in 2011, the company expects sales of $13.9 to $14.3 billion, an increase of 15 to 18 percent over the prior year. GAAP EPS are expected to be $2.75 to $2.90, including acquisition-related and restructuring charges of approximately $0.30 per share. Adjusted EPS are expected to be $3.05 to $3.20, up 20 to 26 percent compared to adjusted EPS of $2.54 in the prior-year period. Approximately $1.0 billion of the expected growth and $0.12 per share of adjusted EPS is due to the impact of the ADC acquisition. Approximately $240 million of the expected growth and $0.05 per share of EPS is due to the impact of the additional week in 2011.

{complink 5844|Tyco Electronics Ltd.}

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