Tyco Electronics Reports Fiscal Fourth Quarter Results and 2008 Outlook

- Sales Increased 11 Percent to $3.6 Billion; Organic Sales Up 8 Percent

- Income From Operations of $443 Million With Operating Margin of 12.2 Percent; Adjusted Operating Income of $494 Million With Adjusted Operating Margin of 13.7 Percent

- Earnings Per Share (EPS) From Continuing Operations of $0.53 on a GAAP Basis; Adjusted EPS of $0.59

- Company Expects Fiscal 2008 Organic Sales Growth of 6 to 8 Percent and Adjusted EPS From Continuing Operations of $2.40 to $2.50, an Increase of 10 to 15 Percent

PRNewswire-FirstCall
PEMBROKE, Bermuda
(BSX:TEL)
Nov 15, 2007

PEMBROKE, Bermuda, Nov. 15 /PRNewswire-FirstCall/ -- Tyco Electronics Ltd. (NYSE: TEL)(BSX: TEL) today reported net sales of $3.6 billion for the fiscal fourth quarter ended Sept. 28, 2007, an increase of 11 percent over the prior-year period. Excluding currency effects, organic sales growth was 8 percent. GAAP diluted earnings per share (EPS) from continuing operations was $0.53 for the quarter. Included in EPS from continuing operations were $0.06 per share of net charges related to restructuring, separation and other items. Adjusted diluted EPS from continuing operations was $0.59 in the quarter.

"Our fourth quarter was a good finish to our fiscal year and I was pleased with our progress against our financial and strategic objectives," said Chief Executive Officer Tom Lynch. "Our strong sales growth was largely due to continued strength in our international markets, which account for more than 60 percent of our sales, along with another very strong quarter in our Undersea Telecommunications business. Our operating margin was better than we anticipated due to the higher sales. We also made good progress on our strategic initiatives as we accelerated our manufacturing simplification activities and, in early October, we announced an agreement to sell our Power Systems business. In addition, we essentially completed our debt structure, announced a $750 million share repurchase program and declared our first dividend payment."

Organic Sales Growth, Adjusted Operating Income, Adjusted EPS, Adjusted Operating Margin and Free Cash Flow are all non-GAAP financial measures and are described near the end of this press release. For a reconciliation of these non-GAAP measures, see the attached tables. All dollar amounts are pre- tax and stated in millions. All comparisons are to the quarter ended Sept. 29, 2006 unless otherwise indicated.

  ($ in millions)              Sept. 28,  Sept. 29,
                                 2007        2006       $ Change    % Change
  Net Sales                    $3,619      $3,248          $371         11%
  Operating Income               $443        $158          $285        180%
  Restructuring-Related Costs    $(59)        $(5)
  Separation-Related Costs       $(20)         $0
  Other Items, Net                $28       $(316)
  Adjusted Operating Income      $494        $479           $15          3%
  Operating Margin              12.2%        4.9%
  Adjusted Operating Margin     13.7%       14.7%

GAAP operating income was $443 million, compared to $158 million in the prior-year period. The operating margin on a GAAP basis was 12.2 percent, compared to 4.9 percent in the prior-year period. Included in operating income were restructuring-related costs of $59 million and separation-related costs of $20 million, partially offset by a $24 million gain on the sale of real estate and $4 million of income related to an insurance recovery. Operating income in the prior-year quarter included a $316 million goodwill impairment charge and $5 million of restructuring-related costs. Excluding these items in both periods, adjusted operating income was $494 million, compared to $479 million a year ago. The adjusted operating margin was 13.7 percent, compared to 14.7 percent a year ago. Consistent with the prior two quarters, the year-over-year decline in the operating margin was largely due to lower production levels in the Electronic Components segment and a lower margin sales mix compared to last year.

CASH FLOW

Cash provided by operating activities was $655 million in the quarter, an increase of 11 percent over the prior-year quarter and free cash flow was $545 million. The increase was largely due to improved inventory performance compared to the prior-year quarter.

Gross capital expenditures were $145 million in the quarter, consistent with the company's expected long-term capital investment levels of 4 to 5 percent of sales. Net capital expenditures were $110 million, which reflected gross capital expenditures less $35 million of proceeds from the sale of real estate. The company ended the quarter with a cash balance of $936 million.

  OTHER ITEMS
  -- During the quarter, the company announced that its Board of Directors
     had authorized a $750 million share repurchase program and declared its
     first regular quarterly dividend of $0.14 per share, which was paid on
     Nov. 1.
  -- On Oct. 19, the company announced the execution of an agreement to sell
     its Power Systems business for $100 million in cash, subject to a final
     working capital adjustment.  The transaction is expected to close by
     the end of calendar 2007 or early in 2008.

  ORDERS

Excluding the company's Wireless Systems and Undersea Telecommunications segments, which are project-oriented businesses with uneven order patterns, orders grew 8 percent organically in the quarter and the book-to-bill ratio was 0.99. Total company orders grew 4 percent organically in the quarter compared to the prior year, and the book-to-bill ratio was 0.93.

OUTLOOK

For the full year 2008, the company expects organic sales growth of 6 to 8 percent and EPS from continuing operations of $2.23 to $2.33, including restructuring and separation-related costs of approximately $130 million ($0.17 per share). This compares to a GAAP loss from continuing operations of $0.29 per share in fiscal 2007, which included $2.33 per share of net charges related to the Tyco International shareholder litigation settlement, separation-related costs and other items. Excluding these charges, EPS in the prior year was $2.04, which included restructuring-related costs of $107 million ($0.14 per share). On an adjusted basis, excluding restructuring and other items, the company expects EPS from continuing operations of $2.40 to $2.50 in 2008, compared to $2.18 in the prior year, an increase of 10 to 15 percent.

For the first quarter of fiscal 2008, the company expects sales growth of 14 to 16 percent over prior-year sales of $3.1 billion, with organic sales growth of 10 to 12 percent. Excluding the strong growth expected in the company's Undersea Telecommunications segment, the company expects organic sales growth of 4 to 6 percent. The company further expects diluted EPS from continuing operations of $0.51 to $0.53 including restructuring and separation-related costs of approximately $40 million ($0.05 per share). This compares to EPS of $0.48 per share in the prior-year quarter, which included separation and restructuring-related costs of $12 million ($0.02 per share). On an adjusted basis, first quarter EPS is expected to be $0.56 to $0.58 compared to $0.50 last year, an increase of 12 to 16 percent.

Lynch said, "For the full year, we expect continued growth in our international markets and relatively flat sales in the U.S. The growth in our Undersea Telecommunications business is expected to be very strong in the first quarter before tapering off over the balance of the year." Lynch continued, "We expect to see solid improvement in our operating margin before restructuring costs in 2008 as we continue to make progress on our strategic priorities and our EPS will also benefit slightly from our recently-announced share repurchase plan. In the first quarter, our adjusted operating margin should be flat-to-slightly higher than last year's adjusted margin of 13.1 percent."

SEGMENT RESULTS

Tyco Electronics is comprised of four reporting segments: Electronic Components, Network Solutions, Wireless Systems and Undersea Telecommunications.

Electronic Components

The Electronic Components segment is the world's largest supplier of passive electronic components, including connectors and interconnect systems, relays, switches, circuit protection devices, touchscreens, sensors, and wire and cable.

  ($ in millions)             Sept. 28, Sept. 29,                   Organic
                                 2007     2006    $ Change % Change  Growth

  Net Sales                    $2,630   $2,439      $191      8%       4%
  Operating Income               $347     $352       $(5)    (1)%
  Restructuring-Related Costs    $(23)     $(1)
  Adjusted Operating Income      $370     $353       $17      5%
  Operating Margin              13.2%    14.4%
  Adjusted Operating Margin     14.1%    14.5%

Sales in the segment grew 8 percent year over year, or 4 percent organically. On an organic basis, growth was driven by strength in the communications (+12 percent), industrial machinery (+9 percent), aerospace and defense (+8 percent), consumer electronics (+8 percent) and automotive (+7 percent) markets. This growth was partially offset by a 4 percent decline in the computer market, primarily driven by the strategic decision to exit certain low-margin business and relatively flat sales in our appliance market. On a geographic basis, segment sales grew 10 percent organically in Asia, 4 percent in Europe, and declined 3 percent in the Americas.

Operating income decreased by $5 million, due entirely to restructuring- related costs. Adjusted operating income grew $17 million, due to higher sales levels. The adjusted operating margin decreased by 40 basis points due primarily to lower production and productivity levels in North America, particularly in automotive, communications equipment and housing-related markets. Restructuring-related costs in the quarter were $23 million, compared to $1 million in the prior-year quarter.

Network Solutions

The Network Solutions segment is a supplier of infrastructure components and systems for telecommunications and energy networks.

  ($ in millions)             Sept. 28, Sept. 29,                  Organic
                                 2007      2006  $ Change % Change  Growth

  Net Sales                      $522      $460      $62       13%     7%
  Operating Income                $46       $70     $(24)     (34)%
  Restructuring-Related Costs    $(31)      $(1)
  Adjusted Operating Income       $77       $71       $6        8%
  Operating Margin               8.8%     15.2%
  Adjusted Operating Margin     14.8%     15.4%

Segment sales grew 13 percent compared to the prior-year quarter, or 7 percent organically. On an organic basis, sales to the building networks market grew 17 percent, reflecting strong demand for faster and more secure networks and higher pricing on copper cabling products. Sales to the communication service provider market increased 7 percent, due to an increase in sales of fiber optic network components. Sales to the energy market grew 4 percent, reflecting growth in Europe and Asia.

Operating income decreased by $24 million, due to restructuring-related costs. Adjusted operating income increased by $6 million, due to the increase in sales. The decrease in the adjusted operating margin primarily relates to a lower margin sales mix compared to the prior year. Restructuring-related costs in the quarter were $31 million, compared to $1 million in the prior- year quarter.

Wireless Systems

The Wireless Systems segment is a leading innovator of wireless technology for critical communications, radar and defense applications.

  ($ in millions)              Sept. 28, Sept. 29,                   Organic
                                 2007       2006   $ Change % Change  Growth

  Net Sales                      $254       $252       $2        1%     1%
  Operating Income                $47      $(282)    $329        NM
  Other Items, Net                $24      $(316)
  Restructuring-Related Costs     $(3)       $(3)
  Adjusted Operating Income       $26        $37     $(11)    (30)%
  Operating Margin              18.5%         NM
  Adjusted Operating Margin     10.2%      14.7%

Sales in the segment were essentially flat year over year. Modest growth in the wireless networks and aerospace and defense businesses was offset by a decline in the commercial products business, primarily due to continued softness in the wireless infrastructure market.

Operating income increased by $329 million, primarily due to a $316 million goodwill impairment charge in last year's fourth quarter. The current quarter included a $24 million gain related to the sale of real estate. On an adjusted basis, the decrease in the operating margin was largely due to the softness in the wireless infrastructure market. Restructuring-related costs in both the current and year-ago quarter were $3 million.

Undersea Telecommunications

The company's Undersea Telecommunications segment installs and maintains undersea telecommunication systems.

  ($ in millions)              Sept. 28, Sept. 29, $ Change % Change Organic
                                 2007      2006                       Growth

  Net Sales                      $213       $97       $116     120%    122%
  Operating Income                $19       $18         $1       6%
  Restructuring-Related Costs     $(2)       $0
  Adjusted Operating Income       $21       $18         $3      17%
  Operating Margin               8.9%     18.6%
  Adjusted Operating Margin      9.9%     18.6%

Sales in the segment grew 122 percent organically versus the prior year due to the continued construction of a large trans-Pacific network project. Adjusted operating income increased $3 million, driven by the increased sales. The adjusted operating margin decline was primarily due to $8 million of income in the prior-year quarter related to divestitures in this segment. Restructuring-related costs in the quarter were $2 million, compared to no such costs in the prior-year quarter.

ABOUT TYCO ELECTRONICS

Tyco Electronics Ltd. is a leading global provider of engineered electronic components, network solutions, wireless systems and undersea telecommunications systems and services, with 2007 sales of US$13.5 billion to customers in more than 150 countries. We design, manufacture and market products for customers in industries from automotive, appliances and aerospace and defense to telecommunications, computers and consumer electronics. With approximately 8,000 engineers and worldwide manufacturing, sales and customer service capabilities, Tyco Electronics' commitment is our customers' advantage. More information on Tyco Electronics can be found at http://www.tycoelectronics.com/.

CONFERENCE CALL AND WEBCAST

The company will hold a conference call for investors today beginning at 5:30 p.m. EST. The call can be accessed in three ways:

  -- Web -- Go to Tyco Electronics' website at
     http://investors.tycoelectronics.com/.  A replay of the call will be
     available through Nov. 30, 2007 at the same website.

  -- Telephone -- The telephone dial-in number in the United States is (877)
     260-8897. The telephone dial-in number for participants outside the
     United States is (612) 332-0923.

  -- Audio replay -- The conference call will be available for replay
     beginning at 9:00 p.m. on Nov. 15, 2007 and ending at 11:59 p.m. on
     Nov. 22, 2007. 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 890947.

  NON-GAAP MEASURES

"Organic Sales Growth," "Adjusted Operating Income," "Adjusted Earnings Per Share," "Adjusted Operating Margin," and "Free Cash Flow" (FCF) are non- GAAP measures and should not be considered replacements for GAAP results.

"Organic Sales Growth" is a useful measure used by the company to measure the underlying results and trends in the business. The difference between reported net sales growth (the most comparable GAAP measure) and Organic Sales Growth (the non-GAAP measure) consists of the impact from foreign currency, acquisitions and divestitures. Organic Sales 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 is also 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 sales. This limitation is best addressed by using organic sales growth in combination with the GAAP numbers. See the accompanying tables to this press release for the reconciliation presenting the components of Organic Sales Growth.

The company has presented its operating income before unusual items including costs related to the separation, legal settlements, restructuring costs and other income or charges ("Adjusted Operating Income"). The company utilizes Adjusted Operating Income to assess segment level core operating performance and to provide insight to management in evaluating segment operating plan execution and underlying market conditions. It is also a significant component in the company's incentive compensation plans. Adjusted Operating Income is a useful measure for investors because it better reflects the company's underlying operating results, trends and the comparability of these results between periods. The difference between Adjusted Operating Income and operating income (the most comparable GAAP measure) consists of the impact of charges related to litigation settlement costs, separation-related costs and restructuring costs and other income or charges that may mask the underlying operating results and/or business trends. The limitation of this measure is that it excludes the financial impact of items that would otherwise either increase or decrease the company's reported operating income. This limitation is best addressed by using Adjusted Operating Income in combination with operating income (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease on reported results.

The company has presented adjusted diluted earnings per share, which is earnings per share from continuing operations before unusual items, including costs related to the separation, legal settlements, restructuring costs, loss on retirement of debt and other income or charges ("Adjusted Earnings Per Share"). The company presents Adjusted Earnings Per Share because we believe that it is appropriate for investors to consider results excluding these items in addition to our results in accordance with GAAP. We believe such a measure provides a picture of our results that is more comparable among periods since it excludes the impact of unusual items, which may recur occasionally, but tend to be irregular as to timing, thereby making comparisons between periods more difficult. This limitation is best addressed by using Adjusted Earnings Per Share in combination with earnings per share (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease on reported results.

The company has presented its operating margin before unusual items including costs related to the separation, legal settlements, restructuring costs and other income or charges ("Adjusted Operating Margin"). The company presents and forecasts its Adjusted Operating Margin before unusual items to give investors a perspective on the underlying business results. Because the company cannot predict the amount and timing of such items and the associated charges or gains that will be recorded in the company's financial statements, it is difficult to include the impact of those items in the forecast.

"Free Cash Flow" (FCF) is a useful measure of the company's cash generation 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 is also a significant component in the company's incentive compensation plans. The difference reflects the impact from:

  -- net capital expenditures,
  -- voluntary pension contributions,
  -- cash impact of unusual items

Net capital expenditures are subtracted because they represent long-term commitments. Voluntary pension contributions are subtracted from the GAAP measure because this activity is driven by economic financing decisions rather than operating activity. The company forecasts its cash flow results excluding any voluntary pension contributions because it has not yet made a determination about the amount and timing of any future such contributions. In addition, the company's forecast excludes the cash impact of unusual items because the company cannot predict the amount and timing of such items.

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 that 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.

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 Electronics' businesses are examples of factors, among others, that could cause actual results to differ materially from those described in the forward- looking statements. In addition, Tyco Electronics' historical combined financial information is not necessarily representative of the results it would have achieved as an independent, publicly-traded company and may not be a reliable indicator of its future results. Tyco Electronics has no intention and is under no obligation to update or alter (and expressly disclaims any such intention or obligation to do so) its forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. More detailed information about these and other factors is set forth in the following reports filed with the Securities and Exchange Commission: Information Statement included as Exhibit 99.1 to Tyco Electronics' Current Report on Form 8-K filed June 8, 2007; Tyco Electronics' Quarterly Report on Form 10-Q for the Quarterly Period ended June 29, 2007; and Tyco Electronics' Current Report on Form 8-K filed September 20, 2007.

                          TYCO ELECTRONICS LTD.
      CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS (UNAUDITED)

                                       For the Quarters   For the Twelve
                                            Ended          Months Ended
                                     Sept. 28, Sept. 29, Sept. 28, Sept. 29,
                                         2007     2006     2007     2006
                                       (in millions, except per share data)

  Net sales                             $3,619  $3,248  $13,460  $12,300
  Cost of sales                          2,708   2,379   10,012    8,999
      Gross income                         911     869    3,448    3,301
  Selling, general, and administrative
   expenses                                401     394    1,664    1,524
  Allocated class action settlement
   (income) costs, net                      (4)      -      887        -
  Separation costs                          20       -       45        -
  Restructuring and other charges, net      51       1       99       13
  Goodwill impairment                        -     316        -      316
     Income from operations                443     158      753    1,448
  Interest income                           13      14       53       48
  Interest expense                         (56)    (60)    (231)    (256)
  Other income (expense), net               13       -     (219)       -
     Income from continuing operations
      before income taxes and minority
      interest                             413     112      356    1,240
  Income taxes                            (146)    215     (494)     (46)
  Minority interest                         (3)     (3)      (6)      (6)
     Income (loss) from continuing
      operations                           264     324     (144)   1,188
  (Loss) income from discontinued
   operations, net of income taxes          (8)     45     (410)      13
   Income (loss) before cumulative
   effect of accounting change             256     369     (554)   1,201
  Cumulative effect of accounting
   change, net of income taxes               -       -        -       (8)
     Net income (loss)                    $256    $369    $(554)  $1,193

  Basic earnings (loss) per share:
     Income (loss) from continuing
      operations                         $0.53   $0.65   $(0.29)   $2.39
     (Loss) income from discontinued
      operations                         (0.01)   0.09    (0.82)    0.03
     Income (loss) before cumulative
      effect of accounting change         0.52    0.74    (1.11)    2.42
     Cumulative effect of accounting
      change                               -       -        -      (0.02)
     Net income (loss)                   $0.52   $0.74   $(1.11)   $2.40

  Diluted earnings (loss) per share:
     Income (loss) from continuing
      operations                         $0.53   $0.65   $(0.29)   $2.39
     (Loss) income from discontinued
      operations                         (0.02)   0.09    (0.82)    0.03
     Income (loss) before cumulative
      effect of accounting change         0.51    0.74    (1.11)    2.42
     Cumulative effect of accounting
      change                               -       -        -      (0.02)
     Net income (loss)                   $0.51   $0.74   $(1.11)   $2.40

  Weighted-average number of shares
   outstanding:
     Basic                                 496     497      497      497
     Diluted                               500     497      497      497



                          TYCO ELECTRONICS LTD.
           CONSOLIDATED AND COMBINED BALANCE SHEETS (UNAUDITED)

                                              September 28,    September 29,
                                                   2007              2006
                                           (in millions, except share data)
  Assets
  Current Assets:
    Cash and cash equivalents                       $936              $469
    Accounts receivable, net of allowance
     for doubtful accounts of $60 and
     $59, respectively                             2,686             2,434
    Inventories                                    2,047             1,850
    Class action settlement escrow                   928                 -
    Class action settlement receivable             2,064                 -
    Prepaid expenses and other current assets        672               447
    Deferred income taxes                            325               368
    Assets held for sale                             215               982
      Total current assets                         9,873             6,550
  Property, plant, and equipment, net              3,505             3,076
  Goodwill                                         7,177             7,135
  Intangible assets, net                             554               576
  Deferred income taxes                            1,397             1,501
  Other assets                                     1,182               253
      Total Assets                               $23,688           $19,091

  Liabilities and Shareholders' Equity
  Current Liabilities:
    Current maturities of long-term debt,
     including amounts due to Tyco
     International Ltd. and affiliates of $285
     at September 29, 2006                            $5              $291
    Accounts payable                               1,382             1,251
    Class action settlement liability              2,992                 -
    Accrued and other current liabilities          1,450             1,307
    Deferred revenue                                 191               155
    Liabilities held for sale                        165               145
      Total current liabilities                    6,185             3,149
  Long-term debt, including amounts due
   to Tyco International Ltd. and affiliates
   of $3,225 at September 29, 2006                 3,373             3,371
  Long-term pension and postretirement
   liabilities                                       607               491
  Deferred income taxes                              271               380
  Income taxes                                     1,242               190
  Other liabilities                                  618               334
    Total Liabilities                             12,296             7,915
  Commitments and contingencies
  Minority interest                                   15                16
  Shareholders' equity:
    Common shares, $0.20 par value,
     1,000,000,000 authorized; 497,423,476
     issued and outstanding at September 28, 2007     99                 -
    Capital in excess:
      Share premium                                   13                 -
      Contributed surplus                         10,027                 -
    Parent company investment                          -            10,490
    Accumulated earnings                             186                 -
    Accumulated other comprehensive income         1,052               670
      Total Shareholders' Equity                  11,377            11,160
      Total Liabilities and Shareholders' Equity $23,688           $19,091



                          TYCO ELECTRONICS LTD.
      CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (UNAUDITED)

                                       For the Quarters    For the Twelve
                                            Ended           Months Ended
                                     Sept. 28, Sept. 29, Sept. 28, Sept. 29,
                                         2007    2006     2007      2006
                                                 (in millions)
  Cash Flows From Operating Activities:
  Net income (loss)                       $256    $369   $(554)   $1,193
    Income (loss) from discontinued
     operations, net of income taxes         8     (45)    410       (13)
    Cumulative effect of accounting
     change, net of income taxes             -       -       -         8
  Income (loss) from continuing
   operations                              264     324    (144)    1,188
  Adjustments to reconcile net cash
   provided by operating activities:
    Allocated class action settlement
     (income) costs, net                    (4)      -     887         -
    Depreciation and amortization          138     127     535       484
    Deferred income taxes                   41     (63)    162       (51)
    Loss on retirement of debt               -       -     232         -
    Goodwill impairment                      -     316       -       316
    Other                                   (6)     28      79        85
    Changes in assets and liabilities,
     net of the effects of acquisitions
     and divestitures:
      Accounts receivable, net             (13)     (5)    (95)     (134)
      Inventories                           99     (30)   (124)     (334)
      Accounts payable                      50       7      87       262
      Accrued and other liabilities        128      60     105        91
      Income taxes                          38    (179)   (125)     (179)
      Other                                (80)      5     (61)      (63)
        Net cash provided by operating
         activities                        655     590   1,538     1,665
        Net cash used in discontinued
         operating activities              (12)    (14)    (13)       (2)
  Cash Flows From Investing Activities:
  Capital expenditures                    (145)   (156)   (892)     (555)
  Proceeds from sale of property,
   plant, and equipment                     35       2      72        12
  Class action settlement escrow            (7)      -    (928)        -
  Proceeds from divestiture of
   discontinued operation, net of cash
   retained by business sold                 -       -     227         -
  Other                                    (14)      8      (3)        -
      Net cash used in investing
       activities                         (131)   (146) (1,524)     (543)
      Net cash used in discontinued
       investing activities                  -      (6)     (4)      (96)
  Cash Flows From Financing Activities:
  Debt proceeds                          2,045       -   5,676         -
  Allocated debt activity                    -      47  (3,743)     (731)
  Repayment of debt                     (2,381)      -  (2,455)     (113)
  Net transactions with former parent      (27)   (368)  1,112       (74)
  Transfers from (to) discontinued
   operations                                -       2    (181)        2
  Minority interest distributions paid      (2)     (3)     (7)      (12)
  Other                                      3      (1)      5        (4)
      Net cash (used in) provided by
       financing activities               (362)   (323)    407      (932)
      Net cash provided by discontinued
       financing activities                 13      21      24       104
  Effect of currency translation on
   cash                                     24      (5)     46        (1)
  Net increase in cash and cash
   equivalents                             187     117     474       195
  Less: net increase in cash related to
   discontinued operations                  (1)     (1)     (7)       (6)
  Cash and cash equivalents at
   beginning of period                     750     353     469       280
  Cash and cash equivalents at end of
   period                                 $936    $469    $936      $469

  Reconciliation to Free Cash Flow:
  Net cash provided by operating
   activities                             $655    $590  $1,538    $1,665
  Capital expenditures, net               (110)   (154)   (820)     (543)
  Income tax advance payment                 -       -     163         -
  Free cash flow (1)                      $545    $436    $881    $1,122

  (1) Free cash flow is a non-GAAP measure.  See description of non-GAAP
      measures contained in this release.



                          TYCO ELECTRONICS LTD.
            CONSOLIDATED AND COMBINED SEGMENT DATA (UNAUDITED)

                                          For the Quarters Ended
                                      September 28,   September 29,
                                           2007             2006
                                             ($ in millions)
  Net Sales:
  Electronic Components                  $2,630           $2,439
  Network Solutions                         522              460
  Wireless Systems                          254              252
  Undersea Telecommunications               213               97
      Total                              $3,619           $3,248

  Income from Operations:
  Electronic Components                    $347   13.2%     $352   14.4%
  Network Solutions                          46    8.8%       70   15.2%
  Wireless Systems                           47   18.5%     (282)   NM
  Undersea Telecommunications                19    8.9%       18   18.6%
  Allocated class action
    settlement costs, net and
    separation costs                        (16)               -
      Total                                $443   12.2%     $158    4.9%


                                         For the Twelve Months Ended
                                      September 28,      September 29,
                                            2007              2006
                                               ($ in millions)
  Net Sales:
  Electronic Components                  $10,111            $9,386
  Network Solutions                        1,897             1,740
  Wireless Systems                           887               874
  Undersea Telecommunications                565               300
      Total                              $13,460           $12,300

  Income from Operations:
  Electronic Components                   $1,339   13.2%    $1,404   15.0%
  Network Solutions                          231   12.2%       268   15.4%
  Wireless Systems                            77    8.7%      (239) (27.3)%
  Undersea Telecommunications                 38    6.7%        15    5.0%
  Allocated class action
    settlement costs, net and
    separation costs                        (932)                -
      Total                                 $753    5.6%    $1,448   11.8%



                          TYCO ELECTRONICS LTD.
               NET SALES GROWTH RECONCILIATION (UNAUDITED)

                                  Change in Net Sales for the Quarter Ended
                                              September 28, 2007
                                    versus Net Sales for the Quarter Ended
                                              September 29, 2006

                                                         Acquis-
                                                Trans-   ition/
                                      Organic   lation   Divest-
                                        (1)       (2)    iture      Total
                                               ($ in millions)
  Electronic Components (3):
    Automotive                      $61    6.8%   $48    $-    $109   12.2%
    Computer                        (13)  (4.2)     4     -      (9)  (3.0)
    Communication Equipment          23   11.6      7     -      30   15.2
    Appliance                         1    1.3      6     -       7    5.5
    Industrial Machinery             11    8.6      6     -      17   13.3
    Aerospace and Defense             6    8.0      3     -       9   10.8
    Consumer Electronics              4    7.6      1     -       5    9.6
    Other                             2    0.4     21     -      23    3.5
      Total                          95    3.9     96     -     191    7.8
  Network Solutions (3):
    Energy                            8    3.6     14     -      22   10.4
    Communication Service Provider    9    7.4      8     -      17   13.2
    Building Networks                17   16.5      8     -      25   24.3
    Other                            (1)  (6.9)    (1)    -      (2) (11.8)
      Total                          33    7.2     29     -      62   13.5
  Wireless Systems                    2    0.8    -       -       2    0.8
  Undersea Telecommunications       118  121.9     (2)    -     116  119.6
    Total                          $248    7.7%  $123    $-    $371   11.4%


                                  Change in Net Sales for the Twelve Months
                                           Ended September 28, 2007
                                    versus Net Sales for the Twelve Months
                                           Ended September 29, 2006

                                                        Acquis-
                                                Trans-  ition/
                                      Organic   lation  Divest-
                                        (1)       (2)   iture      Total
                                               ($ in millions)
  Electronic Components (3):
    Automotive                     $192    5.4%  $176   $17    $385   10.8%
    Computer                        (44)  (3.9)    17     -     (27)  (2.4)
    Communication Equipment          45    6.1     22     -      67    9.1
    Appliance                        17    3.5     16     -      33    6.7
    Industrial Machinery             53   11.5     17     -      70   15.2
    Aerospace and Defense            32   10.5      9     -      41   13.4
    Consumer Electronics             21   11.7      4     -      25   13.4
    Other                            59    2.3     72     -     131    5.1
      Total                         375    4.0    333    17     725    7.7
  Network Solutions (3):
    Energy                           43    5.7     47     -      90   11.9
    Communication Service Provider  (41)  (7.4)    25     -     (16)  (2.9)
    Building Networks                61   16.2     19     -      80   21.4
    Other                            (2)  (2.7)     5     -       3    5.0
      Total                          61    3.5     96     -     157    9.0
  Wireless Systems                   12    1.4      1     -      13    1.5
  Undersea Telecommunications       266   88.9     (1)    -     265   88.3
    Total                          $714    5.8%  $429   $17  $1,160    9.4%

  (1) Represents the change in net sales resulting from volume and price
      changes, before consideration of acquisitions, divestitures, and the
      impact of changes in foreign currency exchange rates.  Organic net
      sales growth is a non-GAAP measure. See description of non-GAAP
      measures contained in this release.
  (2) Represents the change in net sales resulting from changes in foreign
      currency exchange rates.
  (3) Industry end market information about net sales is presented
      consistently with our internal management reporting and may be
      periodically revised as management deems necessary.



                          TYCO ELECTRONICS LTD.
            CONSOLIDATED AND COMBINED SEGMENT DATA (UNAUDITED)

                                                                     For the
                                                                     Twelve
                                                                      Months
                                         For the Quarters Ended       Ended
                                      Dec.    March   June    Sept.    Sept.
                                       29,     30,     29,     28,      28,
                                      2006    2007    2007    2007     2007
                                                  (in millions)
  Net Sales:
  Electronic Components             $2,390  $2,540  $2,551  $2,630  $10,111
  Network Solutions                    421     454     500     522    1,897
  Wireless Systems                     207     219     207     254      887
  Undersea Telecommunications           76     122     154     213      565
    Total                           $3,094  $3,335  $3,412  $3,619  $13,460

  Income (Loss) from Operations:
  Electronic Components               $327    $351    $314    $347   $1,339
  Network Solutions                     54      59      72      46      231
  Wireless Systems                      14      10       6      47       77
  Undersea Telecommunications           (1)      4      16      19       38
  Allocated class action
   settlement costs, net and
   separation costs                      -       -    (916)    (16)    (932)
    Total                             $394    $424   $(508)   $443     $753


                                                                     For the
                                                                      Twelve
                                                                      Months
                                         For the Quarters Ended       Ended
                                      Dec.   March    June    Sept.    Sept.
                                       30,     31,     30,     29,      29,
                                      2005    2006    2006    2006     2006
                                                 (in millions)
  Net Sales:
  Electronic Components             $2,158  $2,340  $2,449  $2,439   $9,386
  Network Solutions                    393     412     475     460    1,740
  Wireless Systems                     202     206     214     252      874
  Undersea Telecommunications           64      71      68      97      300
    Total                           $2,817  $3,029  $3,206  $3,248  $12,300

  Income (Loss) from Operations:
  Electronic Components               $313    $373    $366    $352   $1,404
  Network Solutions                     59      61      78      70      268
  Wireless Systems                      17      13      13    (282)    (239)
  Undersea Telecommunications           (3)     (2)      2      18       15
  Allocated class action
   settlement costs, net and
   separation costs                      -       -       -       -        -
    Total                             $386    $445    $459    $158   $1,448



                          TYCO ELECTRONICS LTD.
  ADJUSTED CONSOLIDATED AND COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
              For the Twelve Months Ended September 28, 2007

                                                    Adjustments

                                                         Restruct-
                                                          uring
                                                          and
                                                 Alloc-  Other
                                                  ated  Charges,
                                          Separa- Class   Net
                                           tion  Action   and       Adjusted
                                           Rel-  Settle-  Rel- Other Results
                                           ated    ment  ated  Items, (Non-
                                           Costs  Costs, Costs  Net   GAAP)
                                   US GAAP   (1)    Net    (2)   (3)    (4)
                                     (in millions, except per share data)

  Net sales                        $13,460    $-    $-    $-    $-  $13,460
  Cost of sales                     10,012     -     -    (8)    -   10,004
      Gross income                   3,448     -     -     8     -    3,456
  Selling, general, and
   administrative expenses           1,664   (41)    -     -    24    1,647
  Allocated class action
   settlement costs, net               887     -  (887)    -     -      -
  Separation costs                      45   (45)    -     -     -      -
  Restructuring and other charges,
   net                                  99     -     -   (99)    -      -
     Income from operations            753    86   887   107   (24)   1,809
  Interest income                       53     -     -     -     -       53
  Interest expense                    (231)    -     -     -     -     (231)
  Other (expense) income, net         (219)    -     -     -   232       13
     Income from continuing
      operations before income
      taxes and minority interest      356    86   887   107   208    1,644
  Income taxes                        (494)  (25)    -   (35)    4     (550)
  Minority interest                     (6)    -     -     -     -       (6)
     (Loss) income from continuing
      operations                     $(144)  $61  $887   $72  $212   $1,088

  Basic (loss) earnings per share:
     (Loss) income from continuing
      operations                    $(0.29)                           $2.19
  Diluted (loss) earnings per
   share:
     (Loss) income from continuing
      operations                    $(0.29)                           $2.18

  Weighted-average number of
   shares
     outstanding:
     Basic                             497                              497
     Diluted                           497                              500


        ADJUSTED CONSOLIDATED AND COMBINED INCOME FROM OPERATIONS
                          BY SEGMENT (UNAUDITED)
              For the Twelve Months Ended September 28, 2007


                                                    Adjustments

                                                         Restruct-
                                                          uring
                                                          and
                                                 Alloc-  Other
                                                  ated  Charges,
                                          Separa- Class   Net
                                           tion  Action   and       Adjusted
                                           Rel-   Settle- Rel- Other Results
                                           ated    ment  ated  Items, (Non-
                                           Costs  Costs, Costs  Net   GAAP)
                                   US GAAP   (1)    Net    (2)   (3)    (4)
                                                (in millions)
  Income from Operations:
  Electronic Components             $1,339   $33    $-   $57    $-   $1,429
  Network Solutions                    231     5     -    35     -      271
  Wireless Systems                      77     2     -    10   (24)      65
  Undersea Telecommunications           38     1     -     5     -       44
  Allocated class action
   settlement costs, net
   and separation costs               (932)   45   887     -     -        -
    Total                             $753   $86  $887  $107  $(24)  $1,809

  (1) Includes $45 million of separation costs, primarily related to
      employee costs, and $41 million of costs related to building separate
      company functions that did not exist in the prior year.
  (2) Includes $104 million of net restructuring and other charges, of which
      $5 million is recorded in cost of sales, and $3 million of
      restructuring related moving costs (recorded in cost of goods sold).
  (3) Consists of a $24 million gain on the sale of real estate and $232
      million loss on retirement of debt.
  (4) Adjusted results is a non-GAAP measure.  See description of non-GAAP
      measures contained in this release.



                          TYCO ELECTRONICS LTD.
        ADJUSTED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
                 For the Quarter Ended September 28, 2007

                                                    Adjustments

                                                        Restruct-
                                                         uring
                                                          and
                                                         Other
                                                        Charges,
                                                 Separa- Net
                                                  tion   and        Adjusted
                                                  Rel-   Rel-  Other Results
                                                  ated   ated  Items, (Non-
                                                  Costs  Costs  Net   GAAP)
                                       US GAAP     (1)    (2)   (3)    (4)
                                      (in millions, except per share data)

  Net sales                             $3,619     $-     $-    $-   $3,619
  Cost of sales                          2,708      -     (8)    -    2,700
      Gross income                         911      -      8     -      919
  Selling, general, and administrative
   expenses                                401      -      -    24      425
  Allocated class action settlement
   income                                   (4)     -      -     4        -
  Separation costs                          20    (20)     -     -        -
  Restructuring and other charges, net      51      -    (51)    -        -
     Income from operations                443     20     59   (28)     494
  Interest income                           13      -      -     -       13
  Interest expense                         (56)     -      -     -      (56)
  Other expense, net                        13      -      -     -       13
     Income from continuing operations
      before income taxes and minority
      interest                             413     20     59   (28)     464
  Income taxes                            (146)    (6)   (18)    4     (166)
  Minority interest                         (3)     -      -     -       (3)
     Income from continuing operations    $264    $14    $41  $(24)    $295

  Basic earnings per share:
     Income from continuing operations   $0.53                        $0.59
  Diluted earnings per share:
     Income from continuing operations   $0.53                        $0.59

  Weighted-average number of shares
     outstanding:
     Basic                                 496                          496
     Diluted                               500                          500

   ADJUSTED CONSOLIDATED INCOME FROM OPERATIONS BY SEGMENT (UNAUDITED)
                 For the Quarter Ended September 28, 2007

                                                    Adjustments

                                                        Restruct-
                                                         uring
                                                          and
                                                         Other
                                                        Charges,
                                                 Separa- Net
                                                  tion   and        Adjusted
                                                  Rel-   Rel-  Other Results
                                                  ated   ated  Items, (Non-
                                                  Costs  Costs  Net   GAAP)
                                       US GAAP     (1)    (2)   (3)    (4)
                                                     (in millions)
  Income from Operations:
  Electronic Components                   $347     $-    $23    $-    $370
  Network Solutions                         46      -     31     -      77
  Wireless Systems                          47      -      3   (24)     26
  Undersea Telecommunications               19      -      2     -      21
  Allocated class action settlement
   income and separation costs             (16)    20      -    (4)      -
    Total                                 $443    $20    $59  $(28)   $494

  (1) Includes $20 million of separation costs, primarily related to
      employee costs.
  (2) Includes $56 million of net restructuring and other charges, of
      which $5 million is recorded in cost of sales, and $3 million of
      restructuring related moving costs (recorded in cost of goods sold).
  (3) Consists of $24 million gain on the sale of real estate and $4
      million of class action settlement income related to an insurance
      recovery.
  (4) Adjusted results is a non-GAAP measure.  See description of non-
      GAAP measures contained in this release.



                          TYCO ELECTRONICS LTD.
          ADJUSTED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
                   For the Quarter Ended June 29, 2007

                                                  Adjustments

                                          Alloc-
                                          ated           Restr- Loss
                                          Class  Separa- uctur- on
                                         Action  tion    ing   Ret- Adjusted
                                         Settle-  Rel-   and    ire- Results
                                          ment   ated    Other  ment  (Non-
                                          Costs, Costs  Charges, of    GAAP)
                                 US GAAP   Net    (1)    Net    Debt    (2)
                                      (in millions, except per share data)

  Net sales                       $3,412    $-    $-     $-     $-   $3,412
  Cost of sales                    2,550     -     -      -      -    2,550
      Gross income                   862     -     -      -      -      862
  Selling, general, and
   administrative expenses           426     -   (25)     -      -      401
  Allocated class action settlement
   costs, net                        891  (891)    -      -      -        -
  Separation costs                    25     -   (25)     -      -        -
  Restructuring and other charges,
   net                                28     -     -    (28)     -        -
     (Loss) income from operations  (508)  891    50     28      -      461
  Interest income                     11     -     -      -      -       11
  Interest expense                   (57)    -     -      -      -      (57)
  Other expense, net                (232)    -     -      -    232        -
     (Loss) income from continuing
      operations before income
      taxes and minority interest   (786)  891    50     28    232      415
  Income taxes                      (146)    -   (14)   (10)     -     (170)
  Minority interest                   (1)    -     -      -      -       (1)
     (Loss) income from
      continuing operations        $(933) $891   $36    $18   $232     $244

  Basic and diluted (loss)
   earnings per share:
     (Loss) income from
      continuing operations       $(1.88)                             $0.49

  Weighted-average number of
   shares outstanding:
     Basic and diluted               497                                497

  ADJUSTED COMBINED (LOSS) INCOME FROM OPERATIONS BY SEGMENT (UNAUDITED)
                   For the Quarter Ended June 29, 2007

                                                  Adjustments

                                              Alloc-
                                              ated           Restr-
                                              Class  Separa- uctur-
                                             Action  tion    ing    Adjusted
                                             Settle-  Rel-   and    Results
                                              ment   ated    Other    (Non-
                                              Costs, Costs  Charges,  GAAP)
                                     US GAAP   Net    (1)     Net      (2)
                                                 (in millions)
  (Loss) Income from Operations:
  Electronic Components                $314     $-    $20     $18     $352
  Network Solutions                      72      -      3       4       79
  Wireless Systems                        6      -      1       4       11
  Undersea Telecommunications            16      -      1       2       19
  Allocated class action settlement
   costs, net and separation costs     (916)   891     25       -        -
    Total                             $(508)  $891    $50     $28     $461


  (1) Includes $25 million of separation costs, primarily related to
      employee costs, and $25 million of costs related to building separate
      company functions that did not exist in the prior year.
  (2) Adjusted results is a non-GAAP measure.  See description of non-GAAP
      measures contained in this release.



                          TYCO ELECTRONICS LTD.
          ADJUSTED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
                   For the Quarter Ended March 30, 2007

                                                   Adjustments

                                                          Restruct-
                                                  Separa-   uring   Adjusted
                                                   tion      and     Results
                                                  Related   Other     (Non-
                                                    Costs  Charges,   GAAP)
                                         US GAAP     (1)     Net      (2)
                                       (in millions, except per share data)

  Net sales                               $3,335      $-      $-    $3,335
  Cost of sales                            2,475       -       -     2,475
      Gross income                           860       -       -       860
  Selling, general, and administrative
   expenses                                  426     (14)      -       412
  Restructuring and other charges, net        10       -     (10)      -
     Income from operations                  424      14      10       448
  Interest income                             14       -       -        14
  Interest expense                           (58)      -       -       (58)
     Income from continuing operations
      before income taxes and minority
      interest                               380      14      10       404
  Income taxes                               (94)     (4)     (3)     (101)
  Minority interest                           (1)      -       -        (1)
     Income from continuing operations      $285     $10      $7      $302

  Basic and diluted earnings per share:
     Income from continuing operations     $0.57                     $0.61

  Weighted-average number of shares
   outstanding:
     Basic and diluted                       497                       497

     ADJUSTED COMBINED INCOME FROM OPERATIONS BY SEGMENT (UNAUDITED)
                   For the Quarter Ended March 30, 2007

                                                   Adjustments

                                                          Restruct-
                                                   Separa-  uring   Adjusted
                                                    tion     and     Results
                                                  Related   Other     (Non-
                                                    Costs  Charges,   GAAP)
                                         US GAAP     (1)     Net      (2)
                                                  (in millions)
  Income from Operations:
  Electronic Components                     $351     $11      $8      $370
  Network Solutions                           59       2       -        61
  Wireless Systems                            10       1       2        13
  Undersea Telecommunications                  4       -       -         4
    Total                                   $424     $14     $10      $448


  (1) Includes $14 million of costs related to building separate company
      functions that did not exist in the prior year.
  (2) Adjusted results is a non-GAAP measure.  See description of non-GAAP
      measures contained in this release.



                          TYCO ELECTRONICS LTD.
          ADJUSTED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
                 For the Quarter Ended December 29, 2006

                                                   Adjustments

                                                           Restruct-
                                                   Separa-  uring   Adjusted
                                                    tion     and     Results
                                                  Related   Other     (Non-
                                                    Costs  Charges,   GAAP)
                                         US GAAP     (1)     Net      (2)
                                        (in millions, except per share data)


  Net sales                               $3,094     $-      $-      $3,094
  Cost of sales                            2,279      -       -       2,279
      Gross income                           815      -       -         815
  Selling, general, and administrative
   expenses                                  411     (2)      -         409
  Restructuring and other charges, net        10      -     (10)          -
     Income from operations                  394      2      10         406
  Interest income                             15      -       -          15
  Interest expense                           (60)     -       -         (60)
     Income from continuing operations
      before income taxes and minority
      interest                               349      2      10         361
  Income taxes                              (108)    (1)     (4)       (113)
  Minority interest                           (1)     -       -          (1)
     Income from continuing operations      $240     $1      $6        $247

  Basic and diluted earnings per share:
     Income from continuing operations     $0.48                      $0.50

  Weighted-average number of shares
   outstanding:
     Basic and diluted                       497                        497



     ADJUSTED COMBINED INCOME FROM OPERATIONS BY SEGMENT (UNAUDITED)
                 For the Quarter Ended December 29, 2006

                                                   Adjustments

                                                           Restruct-
                                                   Separa-  uring   Adjusted
                                                    tion     and     Results
                                                  Related   Other     (Non-
                                                    Costs  Charges,   GAAP)
                                         US GAAP     (1)     Net      (2)
                                                  (in millions)
  Income from Operations:
  Electronic Components                    $327      $2       $8     $337
  Network Solutions                          54       -        -       54
  Wireless Systems                           14       -        1       15
  Undersea Telecommunications                (1)      -        1        -
    Total                                  $394      $2      $10     $406


  (1) Includes $2 million of costs related to building separate company
      functions that did not exist in the prior year.
  (2) Adjusted results is a non-GAAP measure.  See description of non-GAAP
      measures contained in this release.

SOURCE: Tyco Electronics Ltd.

CONTACT: Media Relations, Sheri Woodruff, +1-610-893-9555,
+1-609-933-9243 Mobile, swoodruff@tycoelectronics.com; Investor Relations,
John Roselli, +1-610-893-9559, john.roselli@tycoelectronics.com, or Keith
Kolstrom, +1-610-893-9551, keith.kolstrom@tycoelectronics.com

Web site: http://www.tycoelectronics.com/


Email Page Print RSS
email print rss