By PR Newswire Press Release

PEMBROKE, Bermuda — Tyco Electronics Ltd. (NYSE:TEL) today reported results for the fiscal second quarter ended March 27, 2009. The company reported net sales of $2.5 billion for the fiscal second quarter, a decrease of 33 percent compared to the prior-year period. Excluding currency effects, the organic sales decline was 28 percent. The GAAP loss per share from continuing operations was $7.08 for the quarter, compared to diluted EPS of mce_marker.62 in the prior-year period. Included in the loss per share from continuing operations were $7.22 per share of charges — comprised of $6.60 per share of goodwill impairment charges, mce_marker.33 per share of restructuring charges and mce_marker.29 per share of charges related to the company's remaining portion of Tyco International pre-separation securities litigation charges. This compares to mce_marker.05 per share of charges in the prior-year quarter. Adjusted EPS from continuing operations were mce_marker.14 in the quarter, including the benefits of a more favorable tax rate versus the company's prior guidance. Adjusted EPS declined 79 percent from last year's adjusted EPS of mce_marker.67.

“As expected, business conditions were weak across most of our end markets,” said Tyco Electronics Chief Executive Officer Tom Lynch. “Despite these challenging conditions, we continued to execute on our strategy to focus on our core connectivity business, improve our cost structure, and position the company for accelerated growth when markets recover. We had strong cash flow during the quarter, generating more than $380 million of free cash flow, driven primarily by working capital reductions and lower capital spending. In addition, we announced last week that we entered into an agreement with Harris Corporation to sell our Wireless Systems business for $675 million and this substantially completes the divestiture program we initiated at separation.”

– Net Sales Decreased 33 Percent to $2.5 Billion; Organic Sales Declined 28 Percent

– Loss Per Share From Continuing Operations of $7.08 on a GAAP Basis; Adjusted Earnings Per Share (EPS) of mce_marker.14

– GAAP Loss From Operations of $3.8 Billion; Adjusted Operating Income of $76 Million

– Cash From Operating Activities Totaled $424 Million; Free Cash Flow of $382 Million

Third Quarter Outlook

– Company Expects Sales of $2.35 Billion to $2.45 Billion, a Year Over Year Decline of 35 to 38 Percent With an Organic Sales Decline of 30 to 33 Percent

– GAAP Income From Operations Expected to be mce_marker to $30 Million; Adjusted Operating Income Expected to be $40 to $70 Million

– GAAP Loss Per Share From Continuing Operations Expected to be mce_marker.00 to mce_marker.05; Adjusted EPS Expected to be mce_marker.01 to mce_marker.06

– Outlook Excludes Wireless Systems Segment to be Reported as a Discontinued Operation