TYCO ELECTRONICS REPORTS SECOND QUARTER RESULTS

PEMBROKE, Bermuda - 29 April, 2009 - Tyco Electronics Ltd. (NYSE: TEL; BSX: TEL) today reported results for the fiscal second quarter ended 27 March, 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 $0.62 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, $0.33 per share of restructuring charges and $0.29 per share of charges related to the company's remaining portion of Tyco International pre-separation securities litigation charges.  This compares to $0.05 per share of charges in the prior-year quarter.  Adjusted EPS from continuing operations were $0.14 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 $0.67.

Second Quarter Results

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 $0.14

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 $0 to $30 Million; Adjusted Operating Income Expected to be $40 to $70 Million

GAAP Loss Per Share From Continuing Operations Expected to be $0.00 to $0.05; Adjusted EPS Expected to be $0.01 to $0.06

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

"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."

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 fiscal quarter ended Mar. 28, 2008 unless otherwise indicated.

The GAAP operating loss was $3.8 billion, compared to $501 million of income in the prior-year period.  Included in the current quarter operating loss were goodwill impairment charges of $3.5 billion, restructuring charges of $196 million and pre-separation litigation charges of $135 million.  Included in prior-year operating income were $26 million of restructuring costs, pre-separation litigation charges of $23 million, and a $36 million pre-tax gain on the sale of real estate.  Excluding these items in both periods, adjusted operating income was $76 million compared to $514 million a year ago, a decrease of 85 percent.  The adjusted operating margin was 3.1 percent, compared to 14.0 percent a year ago -- reflecting a 33 percent decline in sales, primarily in the company's Electronic Components, Networks Solutions and Specialty Products segments.

CASH FLOW

Cash from continuing operations was $424 million during the quarter, which included a $283 million reduction of primary working capital.  Free cash flow was $382 million, compared to $349 million in the prior year period.  The increase in free cash flow was driven by primary working capital reductions, as well as a 39 percent decline in capital expenditures versus the prior year.       

ADDITIONAL ITEMS

The company reported a non-cash goodwill impairment charge of $3.5 billion.  This charge is the result of significant sales and earnings declines in the company's Electronic Components and Specialty Products segments.

The company reported $135 million of charges related to its remaining portion (31 percent) of pre-separation Tyco International securities litigation.  The charges include the settlement of two cases in the quarter, as well as establishment of a reserve for the remaining securities litigation.