John F. Fort, Tyco's Lead Director, said, "We are moving quickly to streamline our corporate operations to ensure that we manage Tyco with financial discipline and a relentless focus on support of our operating businesses, which are the heart of the company. While Tyco is run very efficiently at the operating level, we have identified areas where we can streamline functions and eliminate nonessential costs. These actions underscore our commitment to financial prudence and discipline. We will continue to take every opportunity to improve Tyco's advantage of fundamentally strong businesses with solid finances."
According to Chief Financial Officer Mark H. Swartz, these actions are expected to result in a reduction of approximately 115 corporate staff positions and savings of approximately $125 million annually.
Specifically, Tyco plans to make the following changes:
·In Exeter, N.H., the company's corporate employees as well as employees of Engineering Products and Services will move to the Tyco Telecommunications building. The company's three buildings at Tyco Park in Exeter will be sold. This move will be completed by September 1.
·The company will move its New York City offices at 9 West 57th Street to a much smaller and more cost-effective location at 712 Fifth Avenue. This move also will be completed by September 1.
·Tyco's London corporate office will be consolidated with other existing Tyco operations in the U.K., and its Luxembourg corporate office will be consolidated into a more cost-effective location.
·A number of corporate departments will be eliminated and their assets sold, including all company aircraft.
·Corporate staffing will be reduced, beginning immediately, in each of the company's corporate offices among all relevant departments.
About Tyco International Ltd.
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 disposable medical products, financing and leasing capital, plastics and adhesives. Tyco operates in more than 100 countries and had fiscal 2001 revenues in excess of $36 billion.
Forward-Looking Statements
This release may contain "forward-looking statements" within the meaning of the 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. Actual results may vary materially from the expectations contained in the forward-looking statements. All statements contained in this release 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 following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: economic, business, competitive and regulatory factors affecting Tyco's businesses; and other factors described in Tyco's Annual Report on Form 10-K for the year ended September 30, 2001 and in Tyco's Quarterly Report on Form 10-Q, as amended for the quarter ended March 31, 2002.