<Page>
EXHIBIT 99.1
FOR IMMEDIATE RELEASE:
TYCO INTERNATIONAL REPORTS SECOND QUARTER LOSS OF 23 CENTS PER SHARE
CHARGES TOTALED 55 CENTS PER SHARE IN THE QUARTER
SECOND QUARTER CASH FLOW WELL ABOVE EXPECTATIONS
PEMBROKE, BERMUDA, APRIL 30, 2003 -- Tyco International Ltd. (NYSE-TYC, BSX-TYC,
LSE-TYI) reported today a loss from continuing operations of 23 cents per share
for its second quarter, compared to a loss from continuing operations of $1.03
for the same period last year.
o Second quarter 2003 results included 55 cents per share in after-tax
charges related to primarily non-cash adjustments arising out of the
Company's ongoing program of intensified internal audits and detailed
controls and operating reviews, a change to an accelerated
amortization method for its ADT dealer program account assets, and a
change in the accounting for the connect fee associated with ADT's
dealer program.
o Second quarter 2002 results from continuing operations included $1.53
per share in after-tax net charges related primarily to the
impairment of the Tyco Global Network, the write-down of investments,
and restructuring charges associated with the downturn in the
electronics and telecommunications sectors.
Earnings per share from continuing operations for the six months ended March 31,
2003 were 8 cents per share, including 55 cents related to the charges noted
above. For the six months ended March 31, 2002 the loss from continuing
operations was 56 cents per share, including $1.65 related to the charges noted
above. See the discussion below and the accompanying tables to this release for
a more detailed description of these items by category and by segment.
Revenues for the second quarter 2003 were $9.0 billion, up 4% from $8.6 billion
in the second quarter of last year, reflecting favorable changes in foreign
currency rates. For the six months ended March 31, 2003 revenues were $17.9
billion, a 4% increase over the same period last year due to favorable changes
in foreign currency rates.
Cash flow from continuing operating activities was $1.4 billion in the quarter
and $2.2 billion for the six months ended March 31, 2003, compared to $1.7
billion and $2.7 billion during the same periods in 2002, respectively.
o The Company changed its definition of "free cash flow" in March 2003.
Under the Company's current definition, second quarter 2003 free
cash flow was $833 million, or 47% above the $568 million in the same
period in 2002. For
<Page>
the six months ended March 31, 2003, free cash flow was $967 million
compared to negative $205 million for the same period in 2002.
o Under the Company's prior definition, free cash flow was $1.1
billion in the second quarter 2003, compared to $1.0 billion in
the same period in 2002. Free cash flow for the six months ended
March 31, 2003 was $1.5 billion compared to $850 million in the
same period in 2002.
("Free cash flow" is a non-GAAP metric used by the Company to measure its
ability to meet its future debt obligations, and is also one component of
measurement used in the Company's compensation plans. See the accompanying table
to this press release for a cash flow statement presented in accordance with
GAAP, and a reconciliation presenting the components of free cash flow.)
"Our cash flow this quarter was well ahead of what we projected, demonstrating
the underlying strength of our businesses, as well as improvements in the
collection of receivables and the management of inventory." said Chairman and
CEO Ed Breen. "And even though we're operating in an economically challenging
environment, operationally our businesses delivered revenues and segment results
in line with the ranges discussed at our March 13, 2003 Investor meeting."
ACCOUNTING ITEMS
The charges arising out of the Company's ongoing program of intensified internal
audits and detailed controls and operating reviews were $997.4 million pre-tax.
This includes the $265 million to $325 million range of anticipated charges
announced on March 13th. Approximately 52% of the charges are the result of
applying management's judgment to estimates of reserves, accruals and valuations
of investments. The remaining 48% is attributable to account reconciliation
discrepancies, inappropriate capitalization of expenses and other accounting
adjustments, of which 44% relate to prior periods from 1997 through the first
quarter of fiscal 2003. Approximately 60% of the total charges related to the
Fire and Security segment and 20% to Engineered Products and Services.
The Company also recorded a charge of $364.5 million pre-tax to reflect a change
in the method of amortization used for ADT dealer program account assets. The
Company has adopted an accelerated approach, based on a 200% declining balance,
as opposed to the 10 year straight line method previously in place.
The Company has also adopted the newly issued EITF 02-16, which requires that
the connect fee associated with ADT's dealer program be recognized as a
reduction of the dealer asset account as opposed to a reduction in costs
associated with the program. The impact associated with this change in
accounting is recorded as a cumulative charge of $206.7 million after-tax as of
October 1, 2002, $12 million pre-tax for the first quarter of fiscal 2003 and $7
million pre-tax in the second quarter of fiscal 2003.
The Company's continuing reexamination of the dealer program assets and connect
fee was part of management's evaluation of this business as well as the ongoing
process of responding to the SEC's Division of Corporation Finance inquiries
regarding the dealer program. The Company has not completed its discussions with
the SEC on these matters or the other accounting items announced today. The
Company, with the concurrence of its external auditors, believes that all of the
charges announced today, coupled with those set forth in the Company's Annual
Report on Form 10-K for fiscal
2
<Page>
2002, are not material individually or in the aggregate to any prior year, and
therefore, do not require a restatement of previously disclosed operating
results. The Company cannot predict the outcome of its discussions with the SEC
or that such outcome will not necessitate further amendments or restatements of
the Company's results of operations. The Company hopes to resolve all issues
raised by the ongoing SEC Division of Corporation Finance review during its
fiscal third quarter.
"I am disappointed that our intensified internal audit and review efforts have
identified additional charges, but I believe at this point we have identified
all, or nearly all, legacy accounting issues," Mr. Breen said. "We have
completed balance sheet reviews for all of our 2,154 accounting entities, and
completed on-site verification of these reviews covering the vast majority of
our assets. Additionally, the issues we have identified are almost entirely
non-cash."
QUARTERLY OPERATING RESULTS
The segment profits and margins presented in the tables below are in
accordance with generally accepted accounting principles (GAAP). These profits
and margins include the charges discussed above. See the tables accompanying
this release for a classification of the charges by segment. Tyco Plastics and
Adhesives is presented as a separate reportable segment for all periods. In
fiscal 2002, its results were included in the Healthcare and Specialty Products
segment. Restated segment results by quarter for fiscal 2002 are available at
www.tyco.com. All dollar amounts are stated in millions.
ELECTRONICS
<Table>
<Caption>
MARCH 31, 2003 MARCH 31, 2002
--------------- --------------
Segment revenues $2,502.0 $2,493.9
Segment profit (loss) $348.6 ($2,588.4)
Segment margins 13.9% NM
</Table>
Revenues were flat year over year as the positive impact of changes in
foreign currency and acquisitions was offset by lower revenues at Tyco
Telecommunications. Revenues in the electronic components sector increased $160
million, or 7%, from foreign currency and $21 million, or 1%, from acquisitions,
offset by a 2% decline due to weakened customer demand as decreases in
telecommunications and industrial markets only partially offset by growth in
product sales into the automotive industry. Telecommunications revenues declined
$134 million, or 82%, to $29 million as no third party systems were built in
2003.
Segment profit includes a net credit of $17.3 million in 2003 and charges of
$2.957 billion in 2002. Favorable foreign currency fluctuations contributed $27
million in 2003. These improvements were partially offset by a decline in base
profits and margins due primarily to reduced sales and mix changes in the
electronic components sector.
3
<Page>
FIRE AND SECURITY SERVICES
<Table>
<Caption>
MARCH 31, 2003 MARCH 31, 2002
-------------- --------------
Segment revenues $2,778.9 $2,569.5
Segment (loss) profit ($702.6) $ 337.6
Segment margins NM 13.1%
</Table>
Revenues increased 8% due primarily to a $150 million, or 6%, positive
impact of changes in foreign currency. Security revenues increased approximately
$62 million, or 5%, as a result of foreign exchange. Fire revenues increased
approximately $143 million, or 12%, including 7% from foreign exchange and 1%
from acquisitions.
The segment loss in 2003 includes $936.8 million in charges, compared to $28.1
million in 2002. Excluding these charges, operating income declined by $131.5
million year over year. In our security business, increased depreciation and
amortization accounted for $48 million of the operating profit decline,
reflecting the impact of rapid growth in the subscriber asset and dealer asset
base in recent years, as well as the impact of acquisitions. In the European
security business, the year over year decline in operating income was $ 42
million, primarily reflecting allowance for doubtful accounts and other expenses
related to higher than expected attrition rates. The remainder of the decline in
operating income for the segment was attributable to a weaker worldwide fire and
contracting environment.
Fire and Security has recently announced restructuring programs at its ADT U.S.
and SimplexGrinnell operations, involving reductions of 1,400 and 1,000
employees, respectively. These restructuring programs will result in more
streamlined and effective operations going forward.
HEALTHCARE
<Table>
<Caption>
MARCH 31, 2003 MARCH 31, 2002
-------------- --------------
Segment revenues $2,137.3 $1,968.3
Segment profit $520.7 $ 448.7
Segment margins 24.4% 22.8%
</Table>
Revenues increased 9%, including an $87 million, or 4%, increase from
favorable changes in foreign currency partially offset by a $9 million decline
from the net impact of acquisitions and divestitures. The increase in net
revenues was largely attributed to increases in the Surgical sector resulting
from the award of the Consorta contract and the introduction of the new TA
Stapler product line; increases in the International division in Europe, Japan
and Asia Pacific partially offset by a decline in Latin America; increases in
the Pharmaceutical division due to higher volumes in Dosage Narcotics, APAP and
microelectronic chemicals; increases in the Medical sector resulting from the
April 2002 award of the Premier Wound Care Contract, successful launches of new
safety needle and prefill syringe products, and increased demand in the
Ultrasound market; increases in the Imaging division resulting from higher sales
across the full product line; and increases in the Respiratory Division
resulting mainly from increased volumes in Helios. These sales increases were
partially offset by a decrease in Retail's base business.
4
<Page>
Segment profit includes $7.7 million in net charges in 2003 and $7.8 million in
charges in 2002. Profits in 2003 were favorably impacted by $24.5 million from
foreign currency exchange fluctuations. The remaining increase in profits and
margins was largely attributed to the favorable sales performance noted above,
favorable absorption as a result of increased production volumes, and continued
focus on optimizing operating expenses.
ENGINEERED PRODUCTS AND SERVICES
<Table>
<Caption>
MARCH 31, 2003 MARCH 31, 2002
-------------- --------------
Segment revenues $1,073.6 $1,101.2
Segment (loss) profit ($73.0) $ 152.7
Segment margins NM 13.9%
</Table>
Revenues declined 3% compared to the second quarter of 2002, comprised
of a 9% decline primarily due to weaker non-residential construction markets and
lower levels of capital and project spending by customers partially offset by a
6% benefit from favorable movements in foreign currency. Declines were most
notable in Flow Control due to weaker valve and thermal control markets;
Electrical and Metal Products, as lower levels of activity in non-residential
construction markets was only partially offset by higher selling prices; and
Earth Tech, primarily as a result of declines in government spending for
environmental and other projects and declines in construction projects.
Segment results include charges of $178.3 million in 2003 and $12.5 million in
2002. The decrease in profits and margins was due primarily to lower volume and
competitive conditions in our major markets for valves and controls, thermal
controls and electrical and metal products, as well as higher raw material
costs.
PLASTICS AND ADHESIVES
<Table>
<Caption>
MARCH 31, 2003 MARCH 31, 2002
-------------- --------------
Segment revenues $488.5 $ 478.5
Segment profit $20.4 $ 47.9
Segment margins 4.2% 10.0%
</Table>
Revenues increased $10 million including a $9 million benefit from
foreign currency. Higher selling prices in Plastics as a result of price
increases related to the rising cost of raw materials, as well as increases in
both Plastics and Adhesives resulting from higher volume of plastic sheeting and
duct tape products, were offset by general economic weakness in the retail, food
service, automotive, industrial and HVAC markets.
Segment profit and margins declined year over year due to $26.7 million in
charges recorded in 2003. Additionally, the impact of rising raw material costs
and a less favorable sales mix were offset by lower selling, general and
administrative expenses.
OTHER ITEMS
Net interest expense was $278 million, up 23% from $226 million in
the same period a year ago, primarily due to increased borrowing costs.
5
<Page>
Corporate expenses for the second quarter of 2003 include approximately $61
million of charges arising out of the Company's ongoing program of intensified
internal audits and detailed controls and operating reviews. Additionally,
Corporate expenses include incremental costs of $92 million to maintain and
extend liability coverage under the Company's Directors and Officers (D&O) and
Fiduciary insurance policies for the years 2001 to 2002.
LIQUIDITY
The Company had cash on hand of approximately $4.0 billion at March
31, 2003 compared to approximately $5.7 billion at December 31, 2002 and
approximately $6.2 billion at September 30, 2002.
During the second quarter, the Company issued convertible bonds with net
proceeds of $4.4 billion, redeemed $3.9 billion in bank credit facilities and
purchased $1.8 billion of its zero coupon convertible bonds due to the exercise
of a put option by the holders of the security. The Company also repurchased
$1.4 billion par value of its outstanding zero coupon bonds that have a put
exercisable at the option of the holders in November 2003, at a purchase price
of approximately $1.1 billion. Approximately $2.5 billion of this security
remains outstanding. Other debt repurchases amounted to approximately $38
million. In January, the Company entered into a $1.5 billion 364-day unsecured
revolving credit facility, none of which has been drawn down.
Tyco's debt-to-capitalization ratio was 46.2% at March 31, 2003, compared with
48.3% at December 31, 2002 and 49.4% at September 30, 2002. The net
debt-to-capitalization ratios were 37.8%, 36.9% and 36.8%, respectively, for the
same periods.
The Company has put in place a guarantee from Tyco International Group S.A.
(Luxembourg) (TIGSA) to bond holders of the Tyco International Ltd. (Bermuda)
zero coupon bonds due 2020 with a put option in November 2003. The Company has
also put in place inter-company guarantees, primarily from its U.S. operating
subsidiaries representing about two-thirds of consolidated tangible assets, in
favor of TIGSA which should address the structural subordination concerns of
Standard & Poor's Ratings Services (S&P). The inter-company guarantees become
effective only if S&P's senior unsecured credit rating for TIGSA falls below
BBB-.
OUTLOOK
Mr. Breen concluded: "Even in an uncertain global economy, our
business units exceeded our expectations on cash flow generation and met our
revenue expectations. These businesses traditionally have their strongest
performance in the third and fourth quarters of the fiscal year. We believe that
this will again be the case this year. The Fire and Security changes in
amortization will result in a few cents higher expense for the second half of
the year. Even with this we will strive continue to strive to achieve the low
end of the range we set out for the second half of the year on March 13th.
Additionally, we expect that our free cash flow will be at the top end of the
range discussed on March 13th."
6
<Page>
CONFERENCE CALL AND WEBCAST
The company will discuss second quarter results on a conference call
for investors today at 5:00 pm EDT. Interested parties may access the conference
call live today, or by replay through May 8, 2003, at the following website:
INVESTORS.TYCO.COM/MEDIALIST.CFM.
The telephone dial-in number TO PARTICIPATE IN THE QUESTION AND ANSWER
SESSION of the call for participants in the United States is: (800) 553-0326.
The telephone dial-in number for participants in International locations is:
(612) 332-7515.
The telephone dial-in number TO PARTICIPATE IN A "LISTEN-ONLY" MODE for
participants in the United States is: (800) 260-0712. The telephone dial-in
number for participants in International locations is: (612) 326-1008. The
participants' code for all callers is: 681919. INVESTORS WHO DO NOT INTEND TO
ASK QUESTIONS SHOULD DIAL THIS NUMBER DIRECTLY.
The telephone replay is scheduled to be available at 12:00 am on May 1, 2003
until 11:59 PM on May 8, 2003. The dial-in numbers for the replay are as
follows: Domestic (U.S.) (800) 475-6701. International: (320) 365-3844. The
replay access code for all callers is: 681923.
ABOUT TYCO INTERNATIONAL
Tyco International Ltd. is a diversified manufacturing and service
company. Tyco is the world's largest manufacturer and servicer of electrical and
electronic components; the world's largest designer, manufacturer, installer and
servicer of undersea telecommunications systems; the world's largest
manufacturer, installer and provider of fire protection systems and electronic
security services and the world's largest manufacturer of specialty valves. Tyco
also holds strong leadership positions in medical device products, and plastics
and adhesives. Tyco operates in more than 100 countries and had fiscal 2002
revenues from continuing operations of approximately $36 billion.
FORWARD-LOOKING INFORMATION
This release contains 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," "project," and similar expressions are
generally intended to identify forward-looking statements. The forward-looking
statements in this release include statements addressing future financial
condition and operating results.
7
<Page>
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.
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 September 30, 2002 and its
Quarterly Report on Form 10-Q for the quarter ended December 31, 2002. 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.
8
TYCO INTERNATIONAL LTD
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(Unaudited)
For the Quarter For the Quarter
Ended 3/31/03 Ended 3/31/02
------------------------ -----------------------
Notable Notable
GAAP Items GAAP Items
------------ --------- ----------- ---------
Net revenues $ 8,980.3 $ - $ 8,611.4 $ -
Cost of sales 5,887.2 (16.1) 5,630.0 (251.3)
Selling, general and administrative expenses 3,234.1 (1,304.6) 1,887.1 -
Restructuring and other unusual (credits) charges, net (59.6) 59.6 403.8 (403.8)
Charges for the impairment of long-lived assets 23.3 (23.3) 2,351.7 (2,351.7)
------------ --------- ----------- ---------
Operating loss (104.7) (1,284.4) (1,661.2 (3,006.8)
Other expense, net (61.4) (84.1) (143.4) (143.4)
Interest expense, net (278.0) (0.4) (225.6) -
------------ --------- ----------- ---------
Loss from continuing operations before income taxes and minority interest (444.1) (1,368.9) (2,030.2) (3,150.2)
Income taxes (22.8) 233.5 (23.2) 100.8
Minority interest (1.0) - (1.6) -
Loss from continuing operations (467.9) (1,135.4) (2,055.0) (3,049.4)
Loss from discontinued operations of Tyco Capital, net of tax - - (4,323.0) (4,512.7)
------------ --------- ----------- ---------
Net loss $ (467.9) $(1,135.4) $ (6,378.0) $(7,562.1)
============ ========= =========== =========
Basic loss per common share:
Loss from continuing operations $ (0.23) $ (1.03)
Loss from discontinued operations of Tyco Capital, net of tax - (2.17)
Net loss per common share (0.23) (3.20)
Diluted loss per common share:
Loss from continuing operations $ (0.23) $ (1.03)
Loss from discontinued operations of Tyco Capital, net of tax - (2.17)
Net loss per common share (0.23) (3.20)
Weighted-average number of common shares outstanding:
Basic 1,994.5 1,991.5
Diluted 1,994.5 1,991.5
</table>
Notable items are presented to aid in the analysis of comparing results from
period to period. However, these analyses should be used only in conjunction
with the data presented in accordance with GAAP. See "Notable Items" table
for a description of these items.
TYCO INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(Unaudited)
For the Six Months For the Six Months
Ended 3/31/03 Ended 3/31/02
-------------------------- ------------------------
Notable Notable
GAAP Items GAAP Items
------------ ------------ ----------- ------------
Net revenues $ 17,919.7 $ - $ 17,190.1 $ -
Cost of sales 11,617.4 (16.1) 10,864.4 (267.8)
Selling, general and administrative expenses 5,334.2 (1,316.1) 3,852.4 (211.3)
Restructuring and other unusual (credits) charges, net (63.1) 59.6 423.7 (423.7)
Charges for the impairment of long-lived assets 23.3 (23.3) 2,351.7 (2,351.7)
-------- ----------- ------------- -----------
Operating income (loss) 1,007.9 (1,295.9) (302.1) (3,254.5)
Other expense, net (40.0) (84.1) (187.3) (187.3)
Interest expense, net (541.2) (0.4) (414.8) -
-------- ----------- ------------- -----------
Income (loss) from continuing operations before income taxes, minority
interest and
cumulative effect of accounting change 426.7 (1,380.4) (904.2) (3,441.8)
Income taxes (267.4) 236.0 (216.0) 172.2
Minority interest (1.7) - (0.1) -
-------- ----------- ------------- -----------
Income (loss) from continuing operations 157.6 (1,144.4) (1,120.3) (3,269.6)
Loss from discontinued operations of Tyco Capital, net of tax - - (4,058.3) (4,512.7)
Income (loss) before cumulative effect of accounting change, net of tax 157.6 (1,144.4) (5,178.6) (7,782.3)
Cumulative effect of accounting change (206.7) (206.7) - -
-------- ----------- ------------- -----------
Net loss $ (49.1) $ (1,351.1) $ (5,178.6)$ (7,782.3)
======== =========== ============= ===========
Basic earnings (loss) per common share:
Income (loss) from continuing operations $ 0.08 $ (0.56)
Loss from discontinued operations of Tyco Capital, net of tax - (2.05)
Income (loss) before cumulative effect of accounting change, net of tax 0.08 (2.61)
Cumulative effect of accounting change (0.10) -
Net loss per common share (0.02) (2.61)
Diluted earnings (loss) per common share:
Income (loss) from continuing operations $ 0.08 $ (0.56)
Loss from discontinued operations of Tyco Capital, net of tax - (2.05)
Income (loss) before cumulative effect of accounting change, net of tax 0.08 (2.61)
Cumulative effect of accounting change (0.10) -
Net loss per common share (0.02) (2.61)
Weighted-average number of common shares outstanding:
Basic 1,994.6 1,983.1
Diluted 1,998.9 1,983.1
Notable items are presented to aid in the analysis of comparing results from
period to period. However, these analyses should be used only in conjunction
with the data presented in accordance with GAAP. See "Notable Items" table for a
description of these items.
TYCO INTERNATIONAL LTD.
RESULTS OF SEGMENTS
(IN MILLIONS, EXCEPT PER SHARE DATA)
(UNAUDITED)
FOR THE QUARTER ENDED FOR THE QUARTER ENDED
MARCH 3/31/03 3/31/02
---------------------- ------------------------
NOTABLE NOTABLE
GAAP ITEMS GAAP ITEMS
------- ---------- --------- ----------
NET REVENUES
Fire and Security Services $2,778.9 $ - $ 2,569.5 $ -
Electronics 2,502.0 - 2,493.9 -
Healthcare 2,137.3 - 1,968.3 -
Engineered Products and Services 1,073.6 - 1,101.2 -
Plastics and Adhesives 488.5 - 478.5 -
--------- ---------- --------- ----------
Total Net Revenues 8,980.3 - 8,611.4 -
SEGMENT PROFIT (LOSS)
Fire and Security Services (702.6) (936.8) 337.6 (28.1)
Electronics 348.6 17.3 (2,588.4) (2,957.5)
Healthcare 520.7 (7.7) 448.7 (7.8)
Engineered Products and Services (73.0) (178.3) 152.7 (12.5)
Plastics and Adhesives 20.4 (26.7) 47.9 (0.9)
--------- ---------- --------- ----------
Total Segment Profit (Loss) 114.1 (1,132.2) (1,601.5) (3,006.8)
Corporate Expenses (218.8) (152.2) (59.7) -
--------- ---------- --------- ----------
OPERATING (LOSS) INCOME (104.7) (1,284.4) (1,661.2) (3,006.8)
Interest Expense, Net (278.0) (0.4) (225.6) -
Other Income (Loss) 14.2 (8.5) (2.4) (2.4)
Loss on Investments (75.6) (75.6) (141.0) (141.0)
--------- ---------- --------- ----------
(LOSS) INCOME FROM CONTINUING OPERATIONS
BEFORE TAXES AND MINORITY INTEREST (444.1) (1,368.9) (2,030.2) (3,150.2)
Income Taxes (22.8) 233.5 (23.2) 100.8
Minority Interest (1.0) - (1.6) -
--------- ---------- --------- ----------
(LOSS) INCOME FROM CONTINUING OPERATIONS $ (467.9) $ (1,135.4) $(2,055.0) $ (3,049.4)
========= ========== ========= ==========
BASIC COMMON SHARES OUTSTANDING 1,994.5 1,991.5
EPS from Continuing Operations ($0.23) ($1.03)
DILUTED COMMON SHARES OUTSTANDING 1,994.5 1,991.5
EPS from Continuing Operations ($0.23) ($1.03)
NOTABLE ITEMS ARE PRESENTED TO AID IN THE ANALYSIS OF COMPARING RESULTS FROM
PERIOD TO PERIOD HOWEVER, THESE ANALYSES SHOULD. BE USED ONLY IN CONJUNCTION
WITH THE DATA PRESENTED IN ACCORDANCE WITH GAAP. SEE "NOTABLE ITEMS" TABLE
FOR A DESCRIPTION OF THESE ITEMS.
TYCO INTERNATIONAL LTD.
RESULTS OF SEGMENTS
(IN MILLIONS, EXCEPT PER SHARE DATA)
(UNAUDITED)
FOR THE SIX MONTHS FOR THE SIX MONTHS
ENDED 3/31/03 ENDED 3/31/02
------------------------ -------------------------
NOTABLE NOTABLE
GAAP ITEMS GAAP ITEMS
--------- ---------- --------- ----------
NET REVENUES
Fire and Security Services $ 5,538.3 $ - $ 5,049.8 $ -
Electronics 5,030.3 - 5,311.2 -
Healthcare 4,142.7 - 3,738.7 -
Engineered Products and Services 2,269.3 - 2,172.9 -
Plastics and Adhesives 939.1 - 917.5 -
Total Net Revenues 17,919.7 - 17,190.1 -
SEGMENT PROFIT (LOSS)
Fire and Security Services (443.3) (948.3) 739.7 (35.9)
Electronics 641.2 17.3 (2,062.7) (2,957.5)
Healthcare 968.1 (7.7) 917.9 (7.8)
Engineered Products and Services 64.3 (178.3) 296.5 (30.4)
Plastics and Adhesives 64.6 (26.7) 141.5 (0.9)
Total Segment Profit 1,294.9 (1,143.7) 32.9 (3,032.5)
Corporate Expenses (287.0) (152.2) (335.0) (222.0)
OPERATING INCOME (LOSS) 1,007.9 (1,295.9) (302.1) (3,254.5)
Interest Expense, Net (541.2) (0.4) (414.8) -
Other Income (Loss) 35.6 (8.5) (6.7) (6.7)
Loss on Investments (75.6) (75.6) (141.0) (141.0)
Net Gain on Sale of Shares of a Subsidiary - - (39.6) (39.6)
INCOME (LOSS) BEFORE TAXES AND MINORITY INTEREST 426.7 (1,380.4) (904.2) (3,441.8)
Income Taxes (267.4) 236.0 (216.0) 172.2
Minority Interest (1.7) - (0.1) -
INCOME (LOSS) FROM CONTINUING OPERATIONS $ 157.6 $ (1,144.4) $(1,120.3) $ (3,269.6)
BASIC COMMON SHARES OUTSTANDING 1,994.6 1,983.1
EPS from Continuing Operations $0.08 ($0.56)
DILUTED COMMON SHARES OUTSTANDING 1,998.9 1,983.1
EPS from Continuing Operations $0.08 ($0.56)
NOTABLE ITEMS ARE PRESENTED TO AID IN THE ANALYSIS OF COMPARING RESULTS FROM
PERIOD TO PERIOD OR FORECASTING FUTURE PERIODS. HOWEVER, THESE ANALYSES SHOULD
BE USED ONLY IN CONJUNCTION WITH THE DATA PRESENTED IN ACCORDANCE WITH GAAP. SEE
"NOTABLE ITEMS" TABLE FOR A DESCRIPTION OF THESE ITEMS.
TYCO INTERNATIONAL LTD.
NOTABLE ITEMS
($ IN MILLIONS)
Engineered
Fire & Security Electronics Healthcare Products Plastics Corporate Total
--------------- ----------- ---------- -------- -------- --------- -----
QUARTER ENDED 3/31/03
By Category:
Asset reserves $ 82.4 $ - $ 8.2 $ 27.2 $ 1.3 $ 3.1 $ 122.2
Reconciliation items 24.9 12.7 3.5 112.6 22.6 (6.1) 170.2
Capitalized costs 178.0 - - 2.6 - 10.6 191.2
Other accounting adjustments 115.3 - - 2.0 - - 117.3
True-up of liabilities 164.7 (39.9) (4.0) 33.9 2.8 23.9 181.4
D&O insurance and other unusual expense - 9.9 - - - 120.7 130.6
Dealer connect fee 7.0 - - - - - 7.0
ADT amortization 364.5 - - - - - 364.5
--------------- ----------- ---------- -------- --------- ---------- ----------
Total Operating 936.8 (17.3) 7.7 178.3 26.7 152.2 1,284.4
Investment write-downs - - - - - 84.1 84.1
Reconciliation item - - - - - 0.4 0.4
--------------- ----------- ---------- -------- --------- ---------- ----------
Total $ 936.8 $ (17.3) $ 7.7 $ 178.3 $ 26.7 $ 236.7 $ 1,368.9
=============== =========== ========== ======== ========= ========== ==========
QUARTER ENDED 3/31/02 By Category:
Restructuring and other unusual $ 14.3 $ 374.0 $ 7.8 $ 6.8 $ 0.9 $ - $ 403.8
Inventory charges 13.8 237.5 - - - - 251.3
Impairment of long-lived assets - 2,346.0 - 5.7 - - 2,351.7
--------------- ----------- ---------- -------- --------- ---------- ----------
Total Operating $ 28.1 $ 2,957.5 $ 7.8 $ 12.5 $ 0.9 $ - $ 3,006.8
=============== =========== ========== ======== ========= ========== ==========
NOTABLE ITEMS ARE PRESENTED TO AID IN THE ANALYSIS OF COMPARING RESULTS FROM
PERIOD TO PERIOD. HOWEVER, THESE ANALYSES SHOULD BE USED ONLY IN CONJUNCTION
WITH THE DATA PRESENTED IN ACCORDANCE WITH GAAP.
TYCO INTERNATIONAL LTD.
NOTABLE ITEMS
($ IN MILLIONS)
Engineered
Fire & Security Electronics Healthcare Products Plastics Corporate Total
--------------- ----------- ---------- -------- -------- --------- -----
SIX MONTHS ENDED 3/31/03
By Category:
Asset reserves $ 82.4 $ - $ 8.2 $ 27.2 $ 1.3 $ 3.1 $ 122.2
Reconciliation items 24.9 12.7 3.5 112.6 22.6 (6.1) 170.2
Capitalized costs 178.0 - - 2.6 - 10.6 191.2
Other accounting adjustments 115.3 - - 2.0 - - 117.3
True-up of liabilities 164.7 (39.9) (4.0) 33.9 2.8 23.9 181.4
D&O insurance and other unusual expense - 9.9 - - - 120.7 130.6
Dealer connect fee 18.5 - - - - - 18.5
ADT amortization 364.5 - - - - - 364.5
------- -------- ------ ------ ----- ------ ----------
Total Operating 948.3 (17.3) 7.7 178.3 26.7 152.2 1,295.9
Investment write-downs - - - - - 84.1 84.1
Reconciliation item - - - - - 0.4 0.4
------- -------- ------ ------ ----- ------ ----------
Total $ 948.3 $ (17.3) $ 7.7 $178.3 $26.7 $236.7 $ 1,380.4
======= ======== ====== ====== ===== ====== ==========
SIX MONTHS ENDED 3/31/02
By Category:
Adjustments for prior year errors $ - $ - $ - $ - $ - $211.3 $ 211.3
Restructuring and other unusual 22.1 374.0 7.8 18.9 0.9 - 423.7
Inventory charges 13.8 237.5 - 5.8 - 10.7 267.8
Impairment of long-lived assets - 2,346.0 - 5.7 - - 2,351.7
------- -------- ------ ------ ----- ------ ----------
Total Operating $ 35.9 $2,957.5 $ 7.8 $ 30.4 $ 0.9 $222.0 $ 3,254.5
======= ======== ====== ====== ===== ====== ==========
NOTABLE ITEMS ARE PRESENTED TO AID IN THE ANALYSIS OF COMPARING RESULTS FROM
PERIOD TO PERIOD. HOWEVER, THESE ANALYSES SHOULD BE USED ONLY IN CONJUNCTION
WITH THE DATA PRESENTED IN ACCORDANCE WITH GAAP.
TYCO INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
(IN MILLIONS)
PRELIMINARY - SUBJECT TO ADJUSTMENTS
(UNAUDITED) (UNAUDITED)
MARCH 31, DECEMBER 31, SEPTEMBER 30,
2003 2002 2002
------------ ----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 3,965.2 $ 5,732.0 $ 6,186.8
Restricted cash 460.3 468.9 196.2
Accounts receivables, net 5,828.2 5,983.8 5,848.6
Inventories 4,660.7 4,880.2 4,716.0
Deferred income taxes 1,253.6 1,112.8 1,338.1
Other current assets 1,797.8 1,655.8 1,464.1
------------ ----------- -----------
Total current assets 17,965.8 19,833.5 19,749.8
Tyco Global Network, Net 644.5 684.8 581.6
Property, Plant and Equipment, Net 9,835.7 10,072.6 9,969.5
Goodwill 26,031.2 26,191.0 26,093.2
Intangible Assets, Net 5,844.5 6,701.6 6,562.6
Other Assets 3,132.7 3,351.9 3,457.7
------------ ----------- -----------
TOTAL ASSETS $ 63,454.4 $ 66,835.4 $ 66,414.4
============ =========== ===========
CURRENT LIABILITIES:
Loans payable and current maturities of long-term debt $ 4,386.8 $ 11,215.4 $ 7,719.0
Accounts payable 2,824.2 2,798.6 3,170.0
Accrued expenses and other current liabilities 4,654.7 4,946.1 5,270.8
Contracts in process - billings in excess of cost 477.7 540.2 522.1
Deferred revenue 723.3 697.2 731.3
Income taxes payable 2,308.2 2,293.8 2,218.9
------------ ----------- -----------
Total current liabilities 15,374.9 22,491.3 19,632.1
Long-Term Debt 17,442.7 13,000.8 16,486.8
Other Long-Term Liabilities 5,220.8 5,409.8 5,462.1
------------ ----------- -----------
TOTAL LIABILITIES 38,038.4 40,901.9 41,581.0
Minority Interest 30.1 42.1 42.8
Shareholders' Equity 25,385.9 25,891.4 24,790.6
------------ ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 63,454.4 $ 66,835.4 $ 66,414.4
============ =========== ===========
TYCO INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN MILLIONS)
PRELIMINARY - SUBJECT TO ADJUSTMENTS
(UNAUDITED)
FOR THE QUARTERS ENDED FOR THE SIX MONTHS ENDED
------------------------ -------------------------
3/31/03 03/31/02 3/31/03 03/31/02
----------- ----------- ----------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
(LOSS) INCOME FROM CONTINUING OPERATIONS $ (467.9) $ (2,055.0) $ 157.6 $ (1,120.3)
ADJUSTMENTS TO RECONCILE NET (LOSS) INCOME FROM
CONTINUING OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Non-cash restructuring and other unusual (credits) charges, net (33.7) 316.2 (33.7) 322.0
Charges for the impairment of long-lived assets 23.3 2,351.7 23.3 2,351.7
Sale of common shares of subsidiary - - - 39.6
Loss on investments 75.6 141.0 75.6 141.0
Depreciation 367.0 371.9 728.1 731.5
Amortization of intangible assets 520.3 134.8 659.1 255.9
Income taxes - deferred and payables (66.0) (12.3) 291.9 (116.8)
Charges related to prior years - - - 222.0
Cash spent on restructuring (131.1) (91.1) (290.1) (182.0)
Decrease in the sale of accounts receivable programs (12.6) (28.0) (93.0) (28.0)
Changes in working capital and other 1,095.5 583.3 637.4 60.8
----------- ------------ ---------- -------------
NET CASH PROVIDED BY OPERATING ACTIVITIES, CONTINUING OPERATIONS 1,370.4 1,712.5 2,156.2 2,677.4
NET CASH PROVIDED BY OPERATING ACTIVITIES, DISCONTINUED OPERATIONS - 690.3 - 924.6
----------- ------------ ---------- -------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,370.4 2,402.8 2,156.2 3,602.0
----------- ------------ ---------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, net (280.9) (418.9) (595.0) (988.3)
Tyco Global Network spending (2.5) (255.7) (89.0) (817.4)
Acquisition of businesses, net of cash acquired (32.4) (975.4) (35.3) (1,664.5)
Acquisition of dealer accounts (163.7) (315.0) (358.3) (678.2)
Cash paid for purchase accounting and holdback/earn-out liabilities (77.7) (157.7) (189.5) (376.4)
All other (97.2) 68.7 (448.6) (190.6)
----------- ------------ ---------- -------------
NET CASH USED IN INVESTING ACTIVITIES, CONTINUING OPERATIONS (654.4) (2,054.0) (1,715.7) (4,715.4)
NET CASH PROVIDED BY INVESTING ACTIVITIES, DISCONTINUED OPERATIONS - 727.1 - 2,251.2
----------- ------------ ---------- -------------
NET CASH USED IN INVESTING ACTIVITIES (654.4) (1,326.9) (1,715.7) (2,464.2)
----------- ------------ ---------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments of) proceeds from debt (2,506.6) 2,453.4 (2,660.5) 5,181.7
Dividends paid (25.2) (25.3) (50.4) (49.7)
Proceeds from options exercises 0.7 46.6 2.6 181.3
Repurchase of shares (0.4) (166.8) (0.4) (765.8)
All other (2.9) 15.1 (5.0) (185.0)
----------- ------------ ---------- -------------
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES, CONTINUING OPERATIONS (2,534.4) 2,323.0 (2,713.7) 4,362.5
NET CASH USED IN FINANCING ACTIVITIES, DISCONTINUED OPERATIONS - (267.2) - (1,762.8)
----------- ------------ ---------- -------------
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (2,534.4) 2,055.8 (2,713.7) 2,599.7
----------- ------------ ---------- -------------
Effect of currency translation on cash 51.6 (5.2) 51.6 (31.0)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1,766.8) 3,126.5 (2,221.6) 3,706.5
TYCO CAPITAL'S CASH AND CASH EQUIVALENTS TRANSFERRED TO
DISCONTINUED OPERATIONS - (957.7) - (1,451.3)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,732.0 1,865.6 6,186.8 1,779.2
----------- ------------ ---------- -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 3,965.2 $ 4,034.4 $ 3,965.2 $ 4,034.4
=========== ============ ========== =============
RECONCILIATION TO "FREE CASH FLOW":
Net cash provided by operating activities, continuing operations $ 1,370.4 $ 1,712.5 $ 2,156.2 $ 2,677.4
Decrease in the sale of accounts receivable programs 12.6 28.0 93.0 28.0
Capital expenditures, net (280.9) (418.9) (595.0) (988.3)
Tyco Global Network spending (2.5) (255.7) (89.0) (817.4)
Dividends paid (25.2) (25.3) (50.4) (49.7)
----------- ------------ ---------- -------------
"FREE CASH FLOW" - OLD DEFINITION 1,074.4 1,040.6 1,514.8 850.0
Acquisition of dealer accounts (163.7) (315.0) (358.3) (678.2)
Cash paid for purchase accounting and holdback/earn-out liabilities (77.7) (157.7) (189.5) (376.4)
----------- ------------ ---------- -------------
"FREE CASH FLOW" - NEW DEFINITION $ 833.0 $ 567.9 $ 967.0 $ (204.6)
=========== ============ ========== =============
FREE CASH FLOW IS A NON-GAAP METRIC USED BY THE COMPANY TO MEASURE ITS ABILITY
TO MEET ITS FUTURE DEBT OBLIGATIONS AND IS ALSO ONE COMPONENT OF MEASUREMENT
USED IN THE COMPANY'S COMPENSATION PLANS.
050103
CONTACTS: Media: Gary Holmes, 212-424-1314
Investor Relations: Kathy Manning, 603-334-3900