Tyco Electronics Inc., the electronics components unit of Tyco International Ltd., led the conglomerate to another strong performance in
the December quarter with a 63% increase in operating profit from the
Tyco Electronics' operating profit rose to $768.1 million in the parent
company's fiscal 2001 first quarter, ended Dec. 31, from $470.5 million in
the last quarter of calendar 1999. The unit's revenue rose 39%, to $2.9
billion from $2.1 billion in the comparable period of 1999.
Continuing recovery in the European electronics market helped Tyco
Electronics during the quarter as the company gained market share in
several product areas, according to company executives. Tyco Electronics
also benefited from new products introduced during the quarter, including
components geared towards the networking and telecommunications markets.
"Each of Tyco [International's] segments reported solid gains in revenue,
operating profits and cash flow, even in the face of a turning economic
environment," said Dennis Kozlowski, Tyco's chairman and chief executive
in a statement. "The strongest growth was recorded by Tyco Electronics,
where double-digit organic growth was enhanced by the successful
integration of the Thomas & Betts OEM division."
Tyco Electronics accounted for 37% of the parent company's $8 billion
revenue and 44% of its operating profit of $1.7 billion. The unit is
expected to maintain its strong growth pace over the next months as Tyco
integrates the power systems business bought from Lucent Technologies
Inc., the company said.
Tyco's net income after charges rose 29%, to $979.5 million, or 57 cents a
share, from $757 million, or 44 cents a share in the year-ago period. The
latest results include a gain of $410 million from the sale of Tyco's ADT
Automotive business and another charge of $29.7 million related to
accounting change, the company said.
Tyco said its future results will meet expectations despite the uncertain
market condition, which could lead to slower growth in some of its
"Although we face an uncertain economic environment, we remain comfortable
with Tyco's outlook for the remainder of 2001," Kozlowski said. "Based on
current business trends, we believe that although some parts of our
business will see slower growth, overall Tyco's results will be in line
with our expectations."