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 more than 110,000 employees worldwide. More information on Tyco can be found at www.tyco.com.

SOURCE Tyco International Ltd.

http://www.tyco.com

For the full-year ended Sept. 26, net sales were $14.8 billion, an increase of 14 percent over the prior year. Organic sales growth was 8 percent, driven by growth in all segments. GAAP diluted EPS from continuing operations were $3.28 for the year, compared to a loss of $0.36 in the prior year. Included in EPS from continuing operations was $1.23 per share of income related to tax items which was partially offset by $0.37 per share of restructuring costs, $0.25 per share of charges related to asset impairments and other charges -- compared to $0.14 per share of restructuring costs and $2.36 per share of other charges in the prior year. Adjusted EPS from continuing operations were $2.67 for the year, an increase of 25 percent over last year's adjusted EPS of $2.14.

"Our fourth quarter results were in line with our expectations and capped a solid first year of progress toward our strategic objectives," said Tyco Electronics CEO Tom Lynch. "However, since late September we have seen a sharp decrease in demand in most of our key end markets, especially in European automotive. This is driving the significant decline in our first quarter outlook. In response to these conditions, we are taking actions to accelerate our restructuring efforts and to reduce overhead."

Organic Sales Growth, Adjusted Operating Income, Adjusted EPS, Adjusted Operating Margin and Free Cash Flow are all non-GAAP financial measures and are described at 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. 28, 2007 unless otherwise indicated.

GAAP operating income was $236 million, compared to $416 million in the prior-year period. The operating margin on a GAAP basis was 6.4 percent. Included in the current quarter operating income were restructuring costs of $131 million and $137 million of impairment charges related to goodwill and other assets. Included in prior-year operating income were $58 million of restructuring costs, $19 million of separation-related costs and $4 million of income for the company's share of an insurance recovery related to Tyco International's securities class action litigation settlement. Excluding these items in both periods, adjusted operating income was $504 million compared to $489 million a year ago, an increase of 3 percent. The adjusted operating margin was 13.6 percent, compared to 14.0 percent a year ago -- primarily reflecting declines in the company's Electronic Components and Network Solutions segments partially offset by higher volumes in the Undersea Telecommunications segment.

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The company, spun off last year from Tyco International Ltd , had forecast 65 cents to 67 cents a share.

Net earnings were $202 million, or 43 cents per share, down from $256 million, or 51 cents per share, a year earlier.

Revenue rose 6 percent to $3.71 billion, ahead of an average estimate of $3.67 billion.

The company said it expects first-quarter adjusted earnings from continuing operations of 24 cents to 28 cents a share, including about 10 cents in losses from foreign currency hedging.

It said first-quarter sales could drop by as much as 19 percent as its key markets have shown a sharp decrease since late September, with particular weakness in the European auto sector.

Tyco Electronics' first-quarter outlook was "meaningfully below consensus" of 54 cents per share, Citi analyst Jim Suva said in a research note. He added that lower commodity prices would help the company, but not enough to offset slowing sales.

(Reporting by Nick Zieminski and Euan Rocha; Editing by Lisa Von Ahn and John Wallace) Keywords: TYCOELECTRONICS/ (nick.zieminski@thomsonreuters.com +1 646 223 6162; Reuters Messaging: nick.zieminski.reuters.com@reuters.net)

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"We are very pleased to expand to this global distribution agreement with Tyco Electronics. Tyco Electronics' reputation and history of bringing innovative products to the market is the perfect fit for the hundreds of thousands of design engineers we serve worldwide," said Mark Larson, Digi-Key president and COO. "Digi-Key's service advantage coupled with Tyco Electronics' technology advantage can do nothing but create a winning situation for a wide range of customers seeking to deliver new products to the market faster or improve the performance of existing products. This worldwide authorization will allow us to offer Tyco Electronics' leading edge products to our fastest growing markets in Europe and Asia."

Digi-Key Corporation focuses on providing customers with superior service, which includes product selection and availability, on-time delivery, and responsiveness. Using streamlined processes and state-of-the-art technologies, Digi-Key serves a global customer base from its single 600,000 square foot facility in Thief River Falls, Minnesota, USA.

About Digi-Key Corporation

One of the world's fastest growing distributors of electronic components, Digi-Key has earned its reputation as an industry leader through its total commitment to service and performance. As a full-service provider of both prototype/design and production quantities of electronic components, Digi-Key has been ranked #1 for Overall Performance for 17 consecutive years from among the nation's more than 200 distributors (EE Times Distribution Study/August 2008). Offering more than a million products from nearly 400 quality name-brand manufacturers, Digi-Key's commitment to inventory is unparalleled. Access to the company's broad product offering is available 24/7 at Digi-Key's top-rated website, www.digikey.com.

SOURCE: Digi-Key Corporation

Digi-Key Corporation 
Editorial Contact 
Steven G. Tsukichi, 218-681-8000, Ext 1001 
Vice President, Strategic Operations 
Chief Marketing Officer 
steve.tsukichi@digikey.com