Tyco Electronics Announces Plans to Streamline Automotive Operations ...

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PEMBROKE, Bermuda, Sept. 4 /PRNewswire-FirstCall/ -- TycoElectronics Ltd. (NYSE: TEL ) today announced its intent to initiate a restructuring toconsolidate production of its automotive products in keymanufacturing sites throughout Eastern and Western Europe. Theproposed changes, which are subject to consultation with severallocal works councils and the European Works Council, would involvethree automotive plant closures and restructuring of operations atseveral facilities in Spain and France, and would impactapproximately 850 employees.
According to Tyco Electronics Chief Executive Officer (CEO) TomLynch, "These actions are the next steps of the broaderstrategic initiative announced last year to streamline ouroperations and improve our productivity in all areas of ourbusiness."
Based on current foreign exchange rates, the company estimates thatcharges associated with the European automotive restructuring planwill be approximately $155 million, with an expected completiontarget within 15 months. In the fiscal fourth quarter, the companynow expects restructuring- related costs of approximately $135million, or $0.27 per share. This compares to prior guidance of $67million, or $0.09 per share for the quarter. As a result, thecompany now expects GAAP diluted EPS from continuing operations of$0.38 to $0.40 for the quarter. On an adjusted basis, the companycontinues to expect EPS from continuing operations of $0.65 to$0.67 for the quarter. As previously disclosed, the company expectsan average payback of approximately three years on costs associatedwith its overall manufacturing footprint simplification program.
ABOUT TYCO ELECTRONICS
Tyco Electronics Ltd. is a leading global provider of engineeredelectronic components, network solutions, underseatelecommunication systems and wireless systems, with 2007 sales of$13.0 billion to customers in more than 150 countries. We design,manufacture and market products for customers in industries fromautomotive, appliance and aerospace and defense totelecommunications, computers and consumer electronics. With over7,000 engineers and worldwide manufacturing, sales and customerservice capabilities, Tyco Electronics' commitment is ourcustomers' advantage. More information on Tyco Electronics can befound at www.tycoelectronics.com .
NON-GAAP MEASURE
"Adjusted EPS (earnings per share)" is a non-GAAP measureand should not be considered a replacement for GAAP (generallyaccepted accounting principles) results. Adjusted EPS reflectsearnings per share from continuing operations before unusual items,including costs related to legal settlements, restructuring costs,loss on retirement of debt and other income or charges("Adjusted Earnings Per Share"). The company presentsAdjusted Earnings Per Share because we believe that it isappropriate for investors to consider results excluding these itemsin addition to our results in accordance with GAAP. We believe sucha measure provides a picture of our results that is more comparableamong periods since it excludes the impact of unusual items, whichmay recur occasionally, but tend to be irregular as to timing,thereby making comparisons between periods more difficult. Thislimitation is best addressed by using Adjusted Earnings Per Sharein combination with earnings per share (the most comparable GAAPmeasure) in order to better understand the amounts, character andimpact of any increase or decrease on reported results.
FORWARD-LOOKING STATEMENTS
This release may contain certain "forward-lookingstatements" within the meaning of the United States PrivateSecurities Litigation Reform Act of 1995. These statements arebased on management's current expectations and are subject torisks, uncertainty and changes in circumstances, which may causeactual results, performance or achievements to differ materiallyfrom anticipated results, performance or achievements. Allstatements contained herein that are not clearly historical innature are forward-looking and the words "anticipate,""believe," "expect," "estimate,""plan," and similar expressions are generally intended toidentify forward-looking statements. The forward-looking statementsin this release include statements addressing the followingsubjects: future financial condition, restructuring plans andoperating results. Economic, business, competitive and/orregulatory factors affecting Tyco Electronics' businesses areexamples of factors, among others, that could cause actual resultsto differ materially from those described in the forward-lookingstatements. Tyco Electronics has no intention and is under noobligation to update or alter (and expressly disclaims any suchintention or obligation to do so) its forward-looking statementswhether as a result of new information, future events or otherwise,except to the extent required by law. More detailed informationabout these and other factors is set forth in Tyco Electronics'Annual Report on Form 10-K for the fiscal year ended September 28,2007, as retrospectively adjusted to reflect the Radio FrequencyComponents and Subsystem and Automotive Sensors businesses asdiscontinued operations in the Company's Current Report on Form 8-Kfiled June 27, 2008, and Quarterly Reports on Form 10-Q for thequarterly periods ended December 28, 2007, March 28, 2008 and June27, 2008, as well as in current reports on Form 8-K filed by TycoElectronics.
Web site: http://www.tycoelectronics.com/

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