Tyco Electronics Business Report FY2008
|Financial overview||(in million USD)|
|Electronic Components Segment|
|Net Sales||11,043||10,111||9.2||-The strengthening
of certain foreign currencies favorably affected net sales by
689 million USD.
-Organic net sales growth of 2.4% resulted from increases in volume partially offset by price erosion.
-In the automotive market, the organic net sales growth of 2.8% resulted from growth in the Asia-Pacific region of 12.2% and Europe/Middle East/Africa region of 3.8% partially offset by a 17.0% decline in the North America region that was driven by continued reductions in production by automotive manufacturers.
-Net sales by end market :
Automotive : 40%
(FY2007 : 39%)
Performance in Key Emerging Markets (FY2008)
-In FY2008, the Company generated 1.8 billion USD of net sales in China, 1.2 billion USD of net sales in Eastern Europe, and 0.2 billion USD of net sales in India. The Company has been increasing its sales and marketing, engineering, and manufacturing resources in these emerging regions.
-The Company divested certain businesses in an effort to streamline its portfolio and reallocate resources to its core operations.
Radio Frequency Components and Subsystem Business
-In May 2008, the Company announced that it has entered into a definitive agreement to sell its Radio Frequency Components and Subsystem business to Cobham Defense Electronic Systems for 425 million USD. The sale of the Radio Frequency Components and Subsystem business is consistent with the Company's strategy to divest certain businesses in an effort to streamline its portfolio and reallocate resources to its core operations. The Radio Frequency Components and Subsystem business, with approximately 2,000 employees primarily located at 11 locations throughout the U.S. and Europe. (From a press release on May 13, 2008)
Automotive Radar Sensors Business
-In July, 2008, the Company agreed to divest the automotive radar sensors business to Autoliv for US$42 million. This part of the business unit , based in Lowell, Massachusetts, USA and Schweinfurt, Germany, designs and manufactures active radar sensor systems used in vehicle driver assist and safety applications for the global automotive market -- and is the development partner of Daimler for automotive radar sensor technology. Existing customers include BMW and Chrysler. (From a press release on Jul 29, 2008)
Closure of Locations
-During FY2007 and FY2008, the Company initiated the closure of approximately 25 manufacturing locations.
-The Company employs over 8,000 engineers dedicated to product research, development, and engineering.
|R&D Expenditure||(in million USD)|
-The Company seeks to continue to increase the percentage of the annual net sales from new products. In FY2008, the Company derived approximately 34% of its net sales from new products launched within the previous three years.
|Capital investment||(in million USD)|
-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
With respect to its manufacturing rationalization plan, it expects to incur restructuring charges of up to 200 million USD from FY 2009 through 2010.