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Tyco International Reports Second Quarter Earnings from Continuing Operations Before Special Items of $0.55 Per Share; Impact of Special Items Results in Loss From Continuing Operations of $5.40 Per Share
Date:4/30/2009

SCHAFFHAUSEN, Switzerland, April 30 /PRNewswire-FirstCall/ --

    ($ millions, except per-share amounts)

                                                Q2 2009  Q2 2008  % Change
                                                -------  -------  --------
    Revenue                                     $4,150   $4,863      (15%)
    (Loss) / Income from Continuing Operations ($2,555)    $272         -
    Diluted EPS from Continuing Operations      ($5.40)   $0.56
    Special Items                               ($5.95)  ($0.11)
    Income from Continuing Ops Before Special
     Items                                        $261     $325      (20%)
    Diluted EPS from Continuing Ops Before
     Special Items                               $0.55    $0.67      (18%)

Tyco International Ltd. (NYSE: TYC) today reported a loss of $5.40 in diluted earnings per share (EPS) from continuing operations for the fiscal second quarter of 2009 and diluted EPS from continuing operations before special items of $0.55 per share. Revenue in the quarter of $4.2 billion declined 15% versus the prior year, mostly due to the impact of the stronger U.S. dollar against foreign currencies. Organic revenue declined 5.5% in the quarter.

Second quarter income from continuing operations was negatively impacted by special items, which totaled $2.8 billion after tax or $5.95 per share as follows:


                                                 After Tax
                                                 ---------  $Per Share
                                              $in Millions  -----------
                                              -------------
    Goodwill and Intangible Asset Impairments       $2,637       $5.56
    Legacy Legal Matters                              $105       $0.23
    Restructuring, Asset Impairments and
     Divestiture Charges                               $74       $0.16
                                                       ---       -----
    TOTAL                                           $2,816       $5.95
                                                    ======       =====

Based on the significant downturn in the global economy, the company re-assessed the fair value of its goodwill and intangible assets versus their respective book values during the quarter and recognized a non-cash goodwill and intangible asset impairments charge of $2.6 billion, or $5.56 per share. Legacy legal matters and restructuring, asset impairment and divestiture charges accounted for the remaining $0.39 per share of special items in the quarter. The company's effective tax rate for the second quarter was 12.1% excluding the impact of the special items.

"The diversified nature of our business mix, including our recurring and service revenue, combined with the actions we have taken to reduce our cost structure, allowed us to exceed our earnings guidance this quarter despite the difficult conditions in the global economy," said Tyco Chairman and Chief Executive Officer Ed Breen. "We continue to aggressively manage our cost structure and working capital, generate strong cash flow and invest in our businesses for long-term growth."

Organic revenue, free cash flow, operating (loss) income before special items, operating margin before special items and income and diluted EPS from continuing operations before special items are non-GAAP financial measures and are described below. For a reconciliation of these non-GAAP measures, see the attached tables. Additional schedules as well as Second Quarter Review slides can be found at www.tyco.com on the Investor Relations portion of Tyco's Website. Certain tables in this press release contain the symbol "-", where the percent change is not meaningful.

SEGMENT RESULTS

The financial results presented in the tables below are in accordance with GAAP unless otherwise indicated. Beginning in the first quarter of fiscal 2009, certain businesses within the ADT Worldwide and Fire Protection Services segments have been realigned, resulting in changes to historical segment performance. The revenue and operating income results shown below have been adjusted to reflect these changes. All dollar amounts are pre-tax and stated in millions. All comparisons are to the fiscal second quarter of 2008 unless otherwise indicated.

ADT Worldwide

                                             Q2 2009  Q2 2008  % Change
                                             -------  -------  --------
    Revenue                                   $1,694   $1,895      (11%)
    Operating (Loss) Income                    ($457)    $220         -
    Operating Margin                               -     11.6%
    Special Items                              ($678)    ($10)
    Operating Income Before Special Items       $221     $230       (4%)
    Operating Margin Before Special Items       13.0%    12.1%

Revenue of $1.7 billion declined 11%, primarily due to changes in foreign currency rates and an organic revenue decline of 3%. Recurring revenue grew 4% organically with growth in all geographic regions. Systems installation and service revenue declined 11% organically mostly due to weakness in North America and Europe as a result of continuing lower sales to retailers and other commercial customers.

ADT incurred an operating loss of $457 million which included $678 million of special items consisting of a $635 million goodwill and intangible asset impairment charge and restructuring charges of $43 million. Operating income before special items of $221 million decreased $9 million, which included an $18 million negative foreign currency impact. The operating margin before special items improved 90 basis points to 13.0%.

Flow Control

                                            Q2 2009  Q2 2008  % Change
                                            -------  -------  --------
    Revenue                                    $927   $1,024       (9%)
    Operating Income                           $133     $143       (7%)
    Operating Margin                           14.3%    14.0%
    Special Items                               ($8)
    Operating Income Before Special Items      $141     $143       (1%)
    Operating Margin Before Special Items      15.2%    14.0%

Revenue of $927 million declined 9% due to changes in foreign currency rates with organic revenue growth of 5%. The Valves business grew 14% organically, which was partially offset by a 9% organic revenue decline in the Water business and a 1% organic revenue decline in the Thermal Controls business.

Operating income was $133 million and the operating margin was 14.3%. Special items of $8 million consisted primarily of restructuring charges. Operating income before special items was $141 million, which included a $25 million negative foreign currency impact. The operating margin before special items improved 120 basis points to 15.2% driven primarily by the Valves and Thermal Controls businesses. Backlog of $1.7 billion decreased 9% organically on a quarter sequential basis.

Fire Protection Services

                                          Q2 2009  Q2 2008  % Change
                                          -------  -------  --------
    Revenue                                  $817     $932      (12%)
    Operating (Loss) Income                 ($122)     $79         -
    Operating Margin                            -      8.5%
    Special Items                           ($191)     ($2)
    Operating Income Before Special Items     $69      $81      (15%)
    Operating Margin Before Special Items     8.4%     8.7%

Revenue of $817 million declined 12% primarily due to changes in foreign currency rates and an organic revenue decline of 2%. Service revenue grew 1% organically and was offset by a decline in installation revenue.

Fire Protection Services incurred an operating loss of $122 million, which included $191 million of special items consisting of a $180 million goodwill impairment charge and restructuring charges of $11 million. Operating income before special items of $69 million decreased $12 million due to a $6 million negative foreign currency impact and lower volume. The operating margin before special items was 8.4%. Backlog of $1.2 billion decreased 2% organically on a quarter sequential basis.

Electrical and Metal Products

                                                 Q2 2009  Q2 2008  % Change
                                                 -------  -------  --------
    Revenue                                         $330     $542      (39%)
    Operating (Loss) Income                        ($962)     $72         -
    Operating Margin                                   -     13.3%
    Special Items                                  ($936)     ($3)
    Operating (Loss) Income Before Special Items    ($26)     $75     (135%)
    Operating Margin Before Special Items           (7.9%)    13.8%

Revenue of $330 million declined 39% with an organic revenue decline of 35%. The decline was primarily due to continued weak demand in end markets, which resulted in a 49% decline in volume for steel products and an 11% decline in volume for copper products.

Electrical and Metal Products incurred an operating loss of $962 million, which included a $935 million goodwill impairment charge. The operating loss before special items was $26 million due to low volume and tighter metal spreads.

Safety Products

                                              Q2 2009  Q2 2008  % Change
                                              -------  -------  --------
    Revenue                                      $382     $469      (19%)
    Operating (Loss) Income                     ($943)     $54         -
    Operating Margin                                -     11.5%
    Special Items                               ($992)    ($26)
    Operating Income Before Special Items         $49      $80      (39%)
    Operating Margin Before Special Items        12.8%    17.1%

Revenue of $382 million declined 19% due to changes in foreign currency rates and an organic revenue decline of 9%. The organic revenue decline was a result of lower volumes across the fire suppression, electronic security and life safety businesses, due to weaker demand in end markets as well as lower distributor inventory levels.

Safety Products incurred an operating loss of $943 million, which included $992 million of special items consisting of a $955 million goodwill and intangible asset impairment charge and $37 million of restructuring and asset impairment charges. Operating income before special items decreased $31 million to $49 million primarily due to lower volume.

OTHER ITEMS

  • Corporate and other expense in the quarter was $203 million and included net charges of $107 million for special items primarily related to legacy legal matters.
  • The company incurred pre-tax charges totaling $108 million in the quarter related to restructuring actions and asset impairments.
  • Cash flow from operating activities was $726 million in the quarter. The company had free cash flow of $454 million, which included cash payments of $50 million primarily related to restructuring activities.

ABOUT TYCO INTERNATIONAL

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 2008 revenue of more than $20 billion and has approximately 110,000 employees worldwide. More information on Tyco can be found at www.tyco.com.

CONFERENCE CALL AND WEBCAST

Management will discuss the company's second quarter results for 2009 and outlook for the third quarter and full year during a conference call and webcast today beginning at 8:30 a.m. EDT. Today's conference call for investors can be accessed in the following ways:

  • 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 (888) 455-5685. The telephone dial-in number for participants outside the United States is (773) 799-3896. The participant code is TYCO.
  • An audio replay of the conference call will be available beginning at 11:00 a.m. on April 30, 2009 and ending on May 7, 2009. The dial-in number for participants in the United States is (866) 386-1322. For participants outside the United States, the replay dial-in number is (203) 369-0408.

NON-GAAP MEASURES

"Organic revenue," "free cash flow (outflow)" (FCF), "income from continuing operations before special items", "earnings per share (EPS) from continuing operations before special items", "operating income before special items" and "operating margin before special items" are non-GAAP measures and should not be considered replacements for GAAP results.

Organic revenue is a useful measure used by the company to measure the underlying results and trends in the business. The difference between reported net revenue (the most comparable GAAP measure) and organic revenue (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 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 results of the company's existing businesses, such as acquisitions and divestitures. 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 in combination with the GAAP numbers. See the accompanying tables to this press release for the reconciliation presenting the components of organic revenue.

FCF is a useful measure of the company's cash which is free from any significant existing obligation. 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, or a measure that is based on it, may be used as a component in the company's incentive compensation plans. The difference reflects the impact from:

  • net capital expenditures,
  • accounts purchased from ADT dealer network,
  • cash paid for purchase accounting and holdback liabilities,
  • voluntary pension contributions, and
  • the sale of accounts receivable programs.

Capital expenditures and the ADT dealer program are subtracted because they represent long-term commitments. Cash paid for purchase accounting and holdback liabilities is subtracted from Cash Flow from Operating Activities because these cash outflows are not available for general corporate uses. Voluntary pension contributions and the impact from the sale of accounts receivable programs are added or subtracted from the GAAP measure because this activity is driven by economic financing decisions rather than operating activity.

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 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 show 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. 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 company has presented its income and EPS from continuing operations before special items and operating income and margin before special items. Special Items include charges and gains related to divestitures, acquisitions, restructurings, impairments, legacy legal and tax charges 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 income and EPS from continuing operations before special items and operating income and margin before special items to assess overall operating performance and segment level core operating performance, as well as to provide insight to management in evaluating overall and segment operating plan execution and underlying market conditions. They may be used as significant components in the company's incentive compensation plans. Operating income, operating margin, and income and EPS from continuing operations 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 income and EPS from continuing operations before special items and income and EPS from continuing operations (the most comparable GAAP measures) consists of the impact of charges and gains related to divestitures, acquisitions, restructurings, impairments, legacy legal and tax charges and other income or charges that may mask the underlying operating results and/or business trends. Operating income and margin before special items do not reflect any additional adjustments that are not reflected in income from continuing operations before special items. 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 and margin and operating income and EPS from continuing operations. This limitation is best addressed by using the non-GAAP measures 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.

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 and in accompanying conference calls or webcasts 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 company's future financial condition and operating results, as well as its portfolio refinement activities. 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. 26, 2008 and Quarterly Report on Form 10-Q for the quarterly period ended March 27, 2009.

                              TYCO INTERNATIONAL LTD.
                    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                       (in millions, except per share data)
                                    (Unaudited)

                                    Quarter Ended         Six Months Ended
                                    -------------         ----------------
                                March 27,   March 28,   March 27,   March 28,
                                    2009        2008        2009        2008
                                    ----        ----        ----        ----
    Net revenue                   $4,150      $4,863      $8,576      $9,700
    Cost of sales                  2,715       3,185       5,584       6,342
    Selling, general and
     administrative expenses       1,200       1,204       2,340       2,371
    Separation costs                   -          (5)          -           4
    Goodwill and intangible
     asset
     impairments                   2,705           -       2,705           -
    Restructuring, asset
     impairment and
     divestiture
     charges, net                     84          37          88          48
                                      --          --          --          --
       Operating (loss) income   $(2,554)       $442     $(2,141)       $935
    Interest income                   11          25          23          83
    Interest expense                 (78)       (115)       (151)       (232)
    Other income, net                  7           -          11          52
                                     ---         ---          --          --
        (Loss) income from
         continuing operations
         before income taxes
         and minority interest    (2,614)        352      (2,258)        838
    Income tax benefit (expense)      60         (79)        (24)       (204)
    Minority interest                 (1)         (1)         (1)         (2)
                                      --          --          --          --
       (Loss) income from
        continuing operations     (2,555)        272      (2,283)        632
    (Loss) income from
      discontinued operations,
      net of income taxes            (12)          8          (7)         11
                                     ---         ---          --          --
       Net (loss) income         $(2,567)       $280     $(2,290)       $643
                                 =======        ====     =======        ====

    Basic earnings per common
     share:
       (Loss) income from
        continuing operations     $(5.40)      $0.56      $(4.83)      $1.29
       (Loss) income from
        discontinued
        operations                 (0.02)       0.02       (0.01)       0.02
                                   -----        ----       -----        ----
       Net (loss) income          $(5.42)      $0.58      $(4.84)      $1.31
                                  ======       =====      ======       =====
    Diluted earnings per
    common share:
       (Loss) income from
        continuing operations     $(5.40)      $0.56      $(4.83)      $1.28
       (Loss) income from
        discontinued
        operations                 (0.02)       0.01       (0.01)       0.03
                                   -----        ----       -----        ----
       Net (loss) income          $(5.42)      $0.57      $(4.84)      $1.31
                                  ======       =====      ======       =====

    Weighted-average number
     of shares outstanding:
      Basic                          473         486         473         489
      Diluted                        473         489         473         493



    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
    26, 2008 and Quarterly Report on Form 10-Q for the quarter ended December
    26, 2008.


                            TYCO INTERNATIONAL LTD.
                             RESULTS OF SEGMENTS
                                 (in millions)
                                  (Unaudited)

                                                Quarter Ended
                                                -------------
                                         March 27,           March 28,
                                           2009                2008
                                           ----                ----
    NET REVENUE
    ADT Worldwide                        $1,694              $1,895
    Flow Control                            927               1,024
    Fire Protection Services                817                 932
    Electrical and Metal Products           330                 542
    Safety Products                         382                 469
    Corporate and Other                       -                   1
                                            ---                 ---
       Total Net Revenue                 $4,150              $4,863
                                         ======              ======

    OPERATING (LOSS) / INCOME AND MARGIN
    ADT Worldwide                         $(457)  -27.0%       $220  11.6%
    Flow Control                            133    14.3%        143  14.0%
    Fire Protection Services               (122)  -14.9%         79   8.5%
    Electrical and Metal Products          (962) -291.5%         72  13.3%
    Safety Products                        (943) -246.9%         54  11.5%
    Corporate and Other                    (203)    N/M        (126)  N/M
                                           ----                ----
        Operating (loss) / Income and
         Margin                         $(2,554)  -61.5%       $442   9.1%
                                        =======                ====



                                              Six Months Ended
                                              ----------------
                                         March 27,           March 28,
                                           2009                2008
                                           ----                ----
    NET REVENUE
    ADT Worldwide                        $3,486              $3,823
    Flow Control                          1,886               2,098
    Fire Protection Services              1,668               1,832
    Electrical and Metal Products           746               1,029
    Safety Products                         790                 916
    Corporate and Other                       -                   2
                                            ---                 ---
       Total Net Revenue                 $8,576              $9,700
                                         ======              ======

    OPERATING (LOSS) / INCOME AND MARGIN
    ADT Worldwide                         $(226)   -6.5%       $466  12.2%
    Flow Control                            270    14.3%        314  15.0%
    Fire Protection Services                (64)   -3.8%        155   8.5%
    Electrical and Metal Products          (935) -125.3%        113  11.0%
    Safety Products                        (869) -110.0%        140  15.3%
    Corporate and Other                    (317)    N/M        (253)  N/M
                                           ----                ----
        Operating (loss) / Income and
         Margin                         $(2,141)  -25.0%       $935   9.6%
                                        =======                ====



                        TYCO INTERNATIONAL LTD.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                             (in millions)
                              (Unaudited)


                                             March 27, September 26,
                                                 2009          2008
                                                 ----          ----
    Current Assets:
    Cash and cash equivalents                  $1,419        $1,519
    Accounts receivable, net                    2,608         3,024
    Inventories                                 1,712         1,879
    Other current assets                        1,911         1,805
    Assets of discontinued operations              36           126
                                                   --           ---
      Total current assets                      7,686         8,353

    Property, plant and equipment, net          3,346         3,519
    Goodwill                                    8,410        11,619
    Intangible assets, net                      2,531         2,693
    Other assets                                2,804         2,620
                                                -----         -----
      Total Assets                            $24,777       $28,804
                                              =======       =======

    Current Liabilities:
    Short-term debt and current maturities
     of long-term debt                            $19          $555
    Accounts payable                            1,166         1,632
    Accrued and other current liabilities       3,124         2,766
    Deferred revenue                              618           608
    Liabilities of discontinued operations          6            82
                                                    -            --
      Total current liabilities                 4,933         5,643

    Long-term debt                              4,223         3,709
    Other liabilities                           3,727         3,944
                                                -----         -----
      Total Liabilities                        12,883        13,296

    Minority interest                              11            14

    Shareholders' equity                       11,883        15,494

                                              -------       -------
      Total Liabilities and Shareholders'
       Equity                                 $24,777       $28,804
                                              =======       =======


    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
    26, 2008 and Quarterly Report on Form 10-Q for the quarter ended December
    26, 2008.



                              TYCO INTERNATIONAL LTD.
                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (in millions)
                                    (Unaudited)

                                       Quarter Ended       Six Months Ended
                                       -------------       ----------------
                                   March 27,  March 28,   March 27,  March 28,
                                       2009       2008        2009       2008
                                       ----       ----        ----       ----
    Cash Flows from Operating
     Activities:
    Net (loss) income               $(2,567)      $280     $(2,290)      $643
      Loss (income) from
       discontinued operations           12         (8)          7        (11)
                                         --         --           -        ---

    Income from continuing
     operations                      (2,555)       272      (2,283)       632
    Adjustments to reconcile net
     cash provided by operating
     activities:
      Goodwill and intangible
       asset impairments              2,705          -       2,705          -
      Depreciation and
       amortization                     284        290         559        566
      Non-cash compensation
       expense                           23         22          52         57
      Deferred income taxes            (165)       (49)       (182)      (105)
      Provision for losses
       on accounts
       receivable and
       inventory                         35         31          69         61
      Other non-cash items               18         30          36         43
       Changes in assets and
        liabilities, net of the effects
        of acquisitions and
        divestitures:
           Accounts receivable, net     149        (36)        162       (108)
           Inventories                  172        (31)         21       (149)
           Other current assets        (300)        29        (287)       (24)
           Accounts payable            (201)       (67)       (376)      (206)
           Accrued and other
            liabilities                 490         17         190       (324)
           Class action settlement
            liability                     -     (3,020)          -     (3,020)
           Income taxes, net             (8)        11          22         24
           Other                         79         34          94        (67)
                                         --         --          --        ---
    Net cash provided by (used in)
     operating activities               726     (2,467)        782     (2,620)
                                        ---     ------         ---     ------
    Net cash (used in) provided
     by discontinued operating
     activities                         (13)        28         (13)         4

    Cash Flows from Investing
     Activities:
         Capital expenditures          (172)      (179)       (331)      (355)
         Proceeds from disposal
          of assets                       2          3           4         10
         Acquisition of
          businesses, net of
          cash acquired                  (2)        (5)        (47)       (27)
         Accounts purchased from
          ADT dealer program           (114)       (97)       (231)      (187)
         Class action settlement
          escrow                          -      2,960           -      2,960
         Other                          (16)        (7)          2        (10)
                                        ---         --         ---        ---
    Net cash (used in) provided
     by investing activities           (302)     2,675        (603)     2,391
                                       ----      -----        ----      -----
    Net cash provided by
     discontinued investing activities   29         32          32         13

    Cash Flows from Financing
     Activities:
         Net repayments of debt        (126)        31         (20)        40
         Proceeds from exercise
          of share options                1          8           1         21
         Dividends paid                 (94)       (74)       (189)      (148)
         Repurchase of common shares
          by subsidiary                   -       (248)         (3)      (477)
         Transfers from (to)
          discontinued operations        16         61          19         19
         Other                           (7)         2          (5)       (70)
                                         --        ---          --        ---
    Net cash used in financing
     activities                        (210)      (220)       (197)      (615)
                                       ----       ----        ----       ----
    Net cash used in discontinued
     financing activities               (16)       (60)        (19)       (17)

    Effect of currency
     translation on cash                 12         17         (82)        24
                                         --         --         ---         --
    Net increase (decrease) in cash
     and cash equivalents               226          5        (100)      (820)
    Cash and cash equivalents at
     beginning of period              1,193      1,069       1,519      1,894
                                      -----      -----       -----      -----

    Cash and cash equivalents at
     end of period                   $1,419     $1,074      $1,419     $1,074
                                     ======     ======      ======     ======

    Reconciliation to "Free
     Cash Flow":
    Net cash provided by (used in)
     operating activities              $726    $(2,467)       $782    $(2,620)
    Decrease in sale of
     accounts receivable                  7          5          10         10
    Capital expenditures, net          (170)      (176)       (327)      (345)
    Accounts purchased from ADT
     dealer program                    (114)       (97)       (231)      (187)
    Purchase accounting and holdback
     liabilities                         (1)        (1)         (1)        (2)
    Voluntary pension contributions       6          1           6          1
                                        ---        ---         ---        ---
    Free Cash Flow                     $454    $(2,735)       $239    $(3,143)


    NOTE: Free cash flow is a non-GAAP measure.  See description of non-GAAP
    measures contained in this release.



                             TYCO INTERNATIONAL LTD.
                         ORGANIC REVENUE RECONCILIATION
                                  (in millions)
                                   (Unaudited)

                                     Quarter Ended March 27, 2009
                                     ----------------------------
                                                              Acquisition/
                                                 Foreign      Divestiture/
                             Net Revenue         Currency         Other
                             -----------         --------     -------------
    ADT Worldwide          $1,694   -10.6%     $(192) -10.1%    $54     2.8%
    Flow Control              927    -9.5%      (150) -14.6%      4     0.0%
    Fire Protection
     Services                 817   -12.3%       (95) -10.2%      -     0.0%
    Electrical and Metal
     Products                 330   -39.1%       (16)  -3.0%     (9)   -1.6%
    Safety Products           382   -18.6%       (41)  -8.7%     (2)   -0.5%
    Corporate and Other         -  -100.0%         -    0.0%      -     0.0%
                              ---                ---            ---
       Total Net Revenue   $4,150   -14.7%     $(494) -10.2%    $47     1.0%
                           ======              ======           ===


                                                    Net Revenue
                                                      for the
                               Organic              Quarter Ended
                               Revenue              March 28, 2008
                              ---------             --------------
    ADT Worldwide            $(63)   -3.3%             $1,895
    Flow Control               49     4.8%              1,024
    Fire Protection
     Services                 (20)   -2.1%                932
    Electrical and Metal
     Products                (187)  -34.5%                542
    Safety Products           (44)   -9.4%                469
    Corporate and Other        (1) -100.0%                  1
                               --                         ---
       Total Net Revenue    $(266)   -5.5%             $4,863
                            =====                      ======


                                  Six Months Ended March 27, 2009
                                  -------------------------------
                                                                Acquisition/
                                                  Foreign       Divestiture/
                              Net Revenue         Currency         Other
                              -----------         --------      -------------
    ADT Worldwide           $3,486    -8.8%     $(361)  -9.4%   $110     2.8%
    Flow Control             1,886   -10.1%      (273) -13.0%      6     0.3%
    Fire Protection
     Services                1,668    -9.0%      (177)  -9.7%      -     0.0%
    Electrical and Metal
     Products                  746   -27.5%       (32)  -3.1%     (9)   -0.9%
    Safety Products            790   -13.8%       (74)  -8.1%     (4)   -0.5%
    Corporate and Other          -  -100.0%         -    0.0%      -     0.0%
                               ---                ---            ---
       Total Net Revenue    $8,576   -11.6%     $(917)  -9.5%   $103     1.1%
                            ======              =====           ====


                                                   Net Revenue
                                                   for the Six
                               Organic             Months Ended
                               Revenue            March 28, 2008
                              ---------           --------------
    ADT Worldwide            $(86)   -2.2%             $3,823
    Flow Control               55     2.6%              2,098
    Fire Protection
     Services                  13     0.7%              1,832
    Electrical and Metal
     Products                (242)  -23.5%              1,029
    Safety Products           (48)   -5.2%                916
    Corporate and Other        (2) -100.0%                  2
                               --                          --
       Total Net Revenue    $(310)   -3.2%             $9,700
                            ======                     ======

    NOTE:  Organic revenue is a non-GAAP measure.  See description of
           non-GAAP measures contained in this release.



    Tyco International Ltd.
    -----------------------
    Earnings Per Share Summary
    (Unaudited)

                                        March 27, 2009  March 28,2008
    --------------------------          -------------  -------------
    Diluted EPS from Continuing
     Operations (GAAP)                         ($5.40)         $0.56
    ---------------------------                ------          -----

    Restructuring charges in cost
     of sales and SG&A                           0.03           0.01

    Class action settlement, net                    -              -

    Restructuring and asset impairment
     charges, net                                0.13           0.06

    Losses on divestitures                          -              -

    Separation costs                                -           0.01

    Intangible impairments                       0.09              -

    Goodwill impairments                         5.47              -

    Tax items                                       -              -

    Voluntary Replacement Program                   -              -

    Reserve adjustment                              -          (0.01)

    Legacy legal items                           0.23           0.04

    --------------------------                  -----          -----
    Total Before Special Items                  $0.55          $0.67
    --------------------------                  -----          -----



    Tyco International Ltd.
    For the Quarter Ended March 27, 2009
    (in millions, except per share data)
    (Unaudited)

                 ADT             Fire    Electrical
                World  Flow   Protection  & Metal    Safety  Corporate
                -wide Control  Services   Products  Products and Other Revenue
                ----- ------- ---------- ---------- -------- --------- -------
    Revenue
     (GAAP)    $1,694   $927      $817      $330       $382      $0    $4,150


                                    Operating Income
                ------------------------------------------------------
                 ADT             Fire    Electrical                     Oper-
                World  Flow   Protection  & Metal    Safety  Corporate  ating
                -wide Control  Services   Products  Products and Other Income
                ----- ------- ---------- ---------- -------- --------- -------

    As Reported
     (GAAP)     ($457)  $133     ($122)    ($962)     ($943)  ($203)  ($2,554)


    Restructuring
     charges
     in cost
     of sales
     and SG&A       2      1                   4         14       1        22

    Class action
     settlement, net

    Separation
     costs

    Losses on
     divestitures   -      3                  (5)                          (2)

    Restructuring
     and asset
     impairment
     charges, net  41      4        11         2         23       5        86

    Intangible
     impairments   22                                    42                64

    Goodwill
     impairments  613              180       935        913             2,641

    Tax items

    Legacy legal
     items                                                      101       101

    Total
     Before
     Special
     Items       $221   $141       $69      ($26)        $49   ($96)     $358




                                                        Income   Diluted EPS
                   Interest   Other                      from        from
                    Income,  Expense, Income Minority Continuing  Continuing
                     net       net     Taxes Interest Operations  Operations

    As Reported
     (GAAP)         ($67)      $7       $60     ($1)    ($2,555)    ($5.40)

    Restructuring
     charges in
     cost of
     sales and SG&A                      (8)                 14       0.03

    Class action
     settlement, net                                          -          -

    Separation costs                                          -          -

    Losses on
     divestitures                                            (2)         -

    Restructuring
     and asset
     impairment
     charges, net                       (24)                 62       0.13

    Intangible
     impairments                        (25)                 39       0.09

    Goodwill
     impairments                        (43)              2,598       5.47

    Tax items                                                 -          -

    Legacy legal
     items                                4                 105       0.23

    Total
     Before
     Special
     Items         ($67)       $7      ($36)    ($1)       $261      $0.55



             --------------------------------------------------        ---
              Diluted Shares Outstanding                               473
             --------------------------------------------------        ---
              Diluted Shares Outstanding - Before Special Items        475
             --------------------------------------------------        ---



    Tyco International Ltd.
    For the Quarter Ended March 28, 2008
    (in millions, except per share data)
    (Unaudited)

                 ADT             Fire    Electrical
                World  Flow   Protection  & Metal    Safety  Corporate
                -wide Control  Services   Products  Products and Other Revenue
                ----- ------- ---------- ---------- -------- --------- -------


    Previously
     Reported
     Revenue
     (GAAP)    $1,966  $1,024     $861       $542      $469      $1    $4,863

    Segment
     Realignment  (71)              71                                      -

    Recasted
     Revenue
     (GAAP)    $1,895  $1,024     $932       $542      $469      $1    $4,863



                                    Operating Income
                ------------------------------------------------------
                                                                       Total
                 ADT             Fire    Electrical                    Oper-
                World  Flow   Protection  & Metal    Safety  Corporate ating
                -wide Control  Services   Products  Products and Other Income
                ----- ------- ---------- ---------- -------- --------- -------

    As
     Previously
     Reported
     (GAAP)      $222    $143      $77        $72       $54   ($126)     $442

    Segment
     Realignment   (2)               2                                      -

    As
     Reported
     (GAAP)      $220    $143      $79        $72       $54   ($126)     $442


    Restructuring
     charges in
     cost of
     sales and
     SG&A                                       2         1       3         6

    Class action
     settlement,
     net                                                                    -

    Separation
     costs                                                       (5)       (5)

    Restructuring
     and asset
     impairment
     charges, net  10                2          1        25      (1)       37

    Goodwill
     impairment                                                             -
                                                                            Tax
     items                                                                  -

    Voluntary
     Replacement
     Program                                                                -

    Reserve
     adjustment                                                  (9)       (9)

    Legacy
     legal
     items                                                       20        20

    Total
     Before
     Special
     Items       $230    $143      $81        $75       $80   ($118)     $491




                                                        Income   Diluted EPS
                   Interest   Other                      from        from
                   Expense,  Expense, Income Minority Continuing  Continuing
                     net       net     Taxes Interest Operations  Operations

    As Previously
     Reported
     (GAAP)          ($90)      $0     ($79)    ($1)      $272       $0.56

    Segment
     Realignment                                             -           -

    As Reported
     (GAAP)          ($90)      $0     ($79)    ($1)      $272       $0.56

    Restructuring
     charges in
     cost of
     sales and
     SG&A                                (2)                 4        0.01

    Class action
     settlement, net                                         -           -

    Separation
     costs             23               (14)                 4        0.01


    Restructuring
     and asset
     impairment
     charges, net                        (7)                30        0.06

    Goodwill
     impairment                                              -

    Tax items                             1                  1           -

    Voluntary
     Replacement
     Program                                                 -           -

    Reserve
     adjustment                           3                 (6)      (0.01)

    Legacy legal
     items                                                  20        0.04


    Total Before
    Special Items    ($67)      $0     ($98)    ($1)      $325       $0.67


              --------------------------------------------------       ---
              Diluted Shares Outstanding                               489
              --------------------------------------------------       ---
              Diluted Shares Outstanding - Before Special Items        489
              --------------------------------------------------       ---


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SOURCE Tyco International Ltd.
Copyright©2009 PR Newswire.
All rights reserved


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