Tyco Electronics Business Report FY2007
Business Highlights
Financial
Overview
- In FY2007, the Company generated 1.6 billion USD of net sales from China, 937 million USD of net sales in Eastern Europe, and 168 million USD of net sales in India. The Company has been increasing its sales and marketing, engineering, and manufacturing resources in these emerging regions.
Separation from Tyco International
Effective June 29, 2007, the Company was officially separated from Tyco International and bacame an independent company.
Divestitures
The divestiture of Power Systems business was authorized during FY2007.
| (in
million USD) |
FY2007 | FY2006 | Rate
of change |
Remarks |
|
Overall |
||||
| Net Sales | 13,460 | 12,300 | 9.4% | -Strong growth in
its international markets coupled with a very strong performance
in Undersea Telecommunications segment. -Net sales by end market : Automotive 30% |
| Income from operations |
753 | 1,448 | (48.0%) | Adversely impacted by charges primarily related to a class action settelement, footprint restructuring, and its separation from Tyco International |
|
Net income |
(554) | 1,193 | - | - |
| Electronic Components | ||||
| Net Sales | 10,111 | 9,386 | 7.7% | Strong growth in most
of its major international markets, coupled with market share
gains in mobile phones and consumer electronics, was partially
offset by weakness in U.S housing and automotive markets. Net sales by end market : Automotive : 39% (FY2006 : 38%) |
| Income from operations |
1,339 | 1,404 | (4.6%) | - |
| Wireless Systems | ||||
| Net Sales | 887 | 874 | 1.5% | Growth in its public safety and automotive markets offset declines in demand for communications infrastructure active components. |
| Income from operations |
77 | (239) | - | - |
- In FY2007, the Company generated 1.6 billion USD of net sales from China, 937 million USD of net sales in Eastern Europe, and 168 million USD of net sales in India. The Company has been increasing its sales and marketing, engineering, and manufacturing resources in these emerging regions.
Separation from Tyco International
Effective June 29, 2007, the Company was officially separated from Tyco International and bacame an independent company.
Divestitures
The divestiture of Power Systems business was authorized during FY2007.
R&D
R&D
Structure
The Company employs over 8,000 engineers dedicated to product research, development, and engineering.
R&D Expenditure
R&D Activities
The Company seeks to continue to increase the percentage of its annual net sales from products launched within the previous year. In FY2007, the Company derived 15% of its net sales from new products launched within the previous year.
The Company employs over 8,000 engineers dedicated to product research, development, and engineering.
R&D Expenditure
| (in million USD) | FY2007 | FY2006 | FY2005 |
| Overall | 520 | 467 | 424 |
| - Electronic Components | 341 | 302 | 286 |
| - Wireless Systems | 99 | 92 | 82 |
| - Others | 80 | 73 | 56 |
R&D Activities
The Company seeks to continue to increase the percentage of its annual net sales from products launched within the previous year. In FY2007, the Company derived 15% of its net sales from new products launched within the previous year.
Investment Activities
Capital Expenditure
| (USD in million) | FY2007 | FY2006 | FY2005 |
| Amount | 892 | 555 | 476 |
The Company plans to continue to simplify its global manufacturing footprint, both by migrating facilities from high cost to low cost countries and by consolidating within countries.
With respect to its manfactutring rationalization plan, it expects to incur restructuring charges of approximately 130 million USD in FY2008 and up to 250 million USD from FY2009 through 2010.