To Our Stakeholders:
I am pleased to present our company's first combined annual review and corporate responsibility report. We've expanded the scope of this year's report in response to feedback we received from our shareholders, customers, employees, and other key partners who have expressed an interest in learning more about Tyco in a variety of areas. In the pages that follow and at www.tyco.com/2010annualreview, we provide a detailed overview of our business performance in fiscal 2010, highlight our accomplishments for the year and outline our priorities going forward.
We also describe some of the important steps we are taking to protect our people and the environment, promote diversity and inclusion, and support our communities. We welcome your feedback, which can be sent to: TycoCommunications@tyco.com.
Business Performance
Despite the weak economic conditions that persisted globally throughout fiscal 2010, our teams performed well. I'm proud that we remained disciplined in our cost focus, delivered solid operating results and improved our financial strength and flexibility while actively funding a range of targeted growth opportunities.
For the full year, revenue was $17.0 billion, up 1% from fiscal 2009. Organic revenue (which excludes the impact of acquisitions, divestitures and foreign currency) was down 3%, compared to an 8% decline in 2009. Managing costs continued to be a priority and, by implementing cost containment initiatives and restructuring programs, we generated meaningful savings that contributed to an improvement in our operating margin.
Still tempered by a weak economy, our overall financial results showed improvement during the year. We reported net income from continuing operations of $1.1 billion, or $2.31 per diluted share, versus a net loss from continuing operations of $1.8 billion, or $3.90 per share, for the prior year. Excluding special items, income from continuing operations totaled $2.68 per diluted share for 2010 versus $2.33 for 2009, an increase of 15%. Additionally, we continued to generate strong cash flow and improved our working capital, finishing the year with $1.8 billion of cash. This enabled us to invest in our businesses, make selective acquisitions and return capital to our shareholders. We completed a $1 billion share repurchase program and authorized a new $1 billion program.
Edward D. Breen
Chairman and Chief Executive Officer
Tyco International Ltd.
