For the fiscal year, diluted earnings before extraordinary items rose to an all time high of $1.18 billion or $2.02 per share, a 51% increase over the comparable twelve months diluted per share earnings of $1.34. Sales for the fiscal year were $12.31 billion, 25% higher than last year's $9.88 billion. The results exclude the acquisition of U.S. Surgical, which was acquired on October 1, 1998.
"The excellent fourth quarter results capped an outstanding year as Tyco posted its highest ever sales and earnings both for the quarter and the year. This performance reflects a number of factors - our ongoing emphasis on growing those businesses which provide recurring revenue and long term sustainable growth; our commitment to reinvestment in our existing businesses for continued improvements in their operating margins; our focus on the intergration of acquisitions to achieve maximum synergies and returns; and our continued drive to take advantage of our size to expand our operations geographically. We expect to continue to provide consistency and stability in earnings for our shareholders, " said L. Dennis Kozlowski, Tyco's Chairman and Chief Executive Officer. " We intend to further build upon this strategy to enhance this strong performance in fiscal 1999 and beyond."
Disposable and Specialty Products
Quarterly earnings at Tyco's Disposable and Specialty Products group grew 63 percent to $188.00 million, versus the $115.4 million reached a year ago. Sales grew to $1.00 billion versus last year's $659.3 million. Kendall's healthcare operations, ADT Automotive and Tyco Plastics and Adhesives each reported strong earnings and margins. U.S. Surgical will combine with Kendall to become the newly formed Tyco Healthcare Products Group. This combination will make Tyco one of the largest providers of disposable medical products in the world.
Full year earnings in the Disposable and Specialty Products group were $643.7 or 42 percent higher than the $452.3 million earned last year. Sales for the year reached $3.45 billion compared with $2.64 billion last year.
Fire and Security Services
At Tyco's Fire and Security Services Group, earnings for the quarter increased 49 percent to $193.2 million versus $129.9 million last year. Sales reached $ 1.35 billion compared to $1.07 billion last year. Sales and operating margins continue to improve around the world as service and recurring revenues continued to increase and recent acquisitions were integrated. Tyco's security group continues to secure new customers at record levels, strengthening the future revenue and earnings stream in this stable and high margin business.
Earnings for the fiscal year were $654.9 million, 45 percent higher than last year's 452.5 million. Sales increased to $4.74 billion compared to $4.17 billion last year.
Flow Control
Fourth Quarter earnings at the Tyco Flow Control group increased 53 percent to $92.3 million from $60.5 million last year. Sales were $638.7 million compared to the prior year's 554.6 million. Tyco's strong global position in valves has provided this segment with consistent growth.
Fiscal year earnings at this segment rose 325.9 million, up from 245.5 million last year, an increase of 33 percent. Sales for the year increased to $2.34 billion from $2.20 billion a year earlier.
Electrical and Electronic Components
At Tyco's Electrical and Electronic Components group, fourth quarter earnings reached $105.0 million versus $70.3 million in the same quarter last year. Sales rose to $540.6 million compared with $424.5 million in the prior year. Tyco Submarine Systems Ltd. continues to secure additional undersea fiber optic telecommunications projects throughout the world. Tyco's shipments of undersea systems are at an all-time high and backlogs are at record levels. These newly or soon to be deployed systems will require future maintenance which translates to a predictable future sales and earnings stream. Tyco Printed Circuit Group, which successfully integrated with Sigma Circuits, Inc., provided strong quarterly results as well.
Earnings for the year were $367.5 million, compared to last year's $158.8 million. Sales for the year were $1.78 billion compared to $875.2 million a year earlier.
Tyco International Ltd., a diversified manufacturing and service company, is the world's largest manufacturer and installer of fire protection systems, the largest provider of electronic security services, and has strong leadership positions in disposable medical products, plastics and adhesives, flow control products, electrical and electronic components and underwater telecommunications systems. The Company operates in more than 80 countries around the world and has expected 1999 revenue in excess of $16 billion.
Forward Looking Information
Certain statements in this release are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All forward looking statements involve risks and uncertainties. In particular, any statements contained herein regarding the consummation and benefits of future acquisitions, as well as expectations with respect to future sales, operating efficiencies and product expansion, are subject to known and unknown risks, uncertainties and contingencies, many of which are beyond the control of the Company, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect such forward looking statements include, among other things, overall economic and business conditions, the demand for the Company's goods and services, competitive factors in the industries in which the Company competes, changes in government regulation and the timing, impact and other uncertainties of future acquisitions.
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For more information, contact Joanne MacPhee at the Bermuda Stock Exchange at phone 1-441-292-7212 or fax 1-441-292-7619. Information is also available at www.bsx.com, on Bloomberg at BSX
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