TE Connectivity Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in million USD)
  FY2010 FY2009 Rate of
change (%)
Net sales 12,070 10,256 17.7 -
Operating income 1,516 (3,474) - -
Electronic Components Segment
Net sales 8,070 5,961 35.4 1)
Operating income 967 (3,716) - -

Electronic Components Segment
-The strengthening of certain foreign currencies favorably affected net sales by $123 million, or 2.4%, in fiscal 2010 as compared to fiscal 2009.

Business Restructuring

-Tyco Electronics Japan G.K. (Kawasaki City, Kanagawa Prefecture) will press ahead with its plan to invest in the area of environmentally friendly vehicles such as hybrid vehicles, demand for which is increasing. Based on a projection that sales of eco-friendly vehicle components will rise, Tyco Electronics Japan has already reinforced its production facilities and increased the workforce. In addition, it is now set to enhance its research and development capabilities for developing new materials and production technologies. Through these efforts, Tyco Electronics Japan aims to revitalize its business, bringing up its sales for the period ending in September 2010 to about 90 percent of its revenue generated prior to the global financial crisis, which was triggered by the collapse of the Lehman Brothers. (From an article in the Nikkan Jidosha Shimbun on Jan. 26, 2010)


R&D Structure

-The Company employs approx. 7,000 engineers dedicated to product research, development, and engineering.


R&D Expenditure

(in million USD)
  FY2010 FY2009 FY2008
Overall 482 439 482
-Electronic Components 312 291 325

-It's new products, including product extensions, introduced during the previous three years comprised approximately 26% of the Company's net sales for fiscal 2010.

Investment Activities

Capital Expenditure

(in million USD)
  FY2010 FY2009 FY2008
Overall 385 328 610

Investment Outside USA

-Tyco Electronics Japan based in Kawasaki, which manufactures electronic components, announced that it will construct a new plant in Kakegawa, Shizuoka Prefecture. It has decided to build a new plant because of continuing production at full capacity at its existing plant in order to respond to growing demand for parts of eco-cars, including a hybrid. The new plant will produce auto parts like a connector. The construction will start in July 2011 and the plant is expected to go into operation in January 2013. Inauguration of a new plant in Japan will be the first to the Company since 1992. (From an article in the Nikkan Jidosha Shimbun on September. 15, 2010)