ADT 1999 Annual Report Download - page 25

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We strengthened our position in valves by
expanding product offerings in existing geographies
and entering new markets in Australia, New
Zealand, South Africa and Sweden. We are now
much bigger and considerably more diversified geo-
graphically than we were just a year ago.
Globally, the water and wastewater treat-
ment and environmental engineering market offers
solid growth potential as industries and govern-
ments try to protect the planet as they use its
resources. Earth Tech continued its international
expansion into strategically important locations
such as Brazil and the United Kingdom.
We improved our positioning in the sprinkler
segment by acquiring Central Sprinkler Company,
our largest competitor in North America. The $200
million company, known for its extensive line of fire
protection products, will help us expand in the Unit-
ed States, Canada and Europe.
My Perspective: Confidence in the Future
We believe that shareholder value is created
through higher earnings per share and strong cash
flow. And this has been reflected in the performance
of our share price: In the past five years, Tyco
shares have appreciated four times faster than the
S&P 500. We're proud of that record, although, as
we enter a new millennium, we tend to regard it as
ancient history.
The questions we ask are: What have we
done for you lately? What are we going to do for you
in the next five years? What we have done is to
establish an outstanding group of global
businesses, which can do well in any economic
environment. And we have given our employees
incentives to achieve the first-class business and
financial performance you have come to expect
from Tyco.
Looking ahead, we will keep executing the
same strategy that has brought us this far. We will
continue to use our strong balance sheet and
powerful cash flow to invest in our operations and to
make strategic acquisitions to improve our
product line as well as our bottom line. I promise
that we will stay focused on the business goals that
matter most: seizing opportunities, generating new
revenue sources, growing earnings and cash flow,
and increasing shareholder value.
The future looks bright. We think we can
double our earnings over the next three years.
Clearly, we have the employee talent to do it. At
Tyco, we expect a lot from our employees and, once
again, they have delivered. One reason I’m opti-
mistic about the Company is because I have confi-
dence in the resourcefulness, vision and dedication
of our employees at every level. These are special
people, who prove repeatedly that hard work and
devotion to excellence can lead to remarkable
accomplishments. I am proud to be associated with
them. My thanks to one and all.
And thank you, shareholders, for your support.
L. Dennis Kozlowski
Chairman of the Board
and Chief Executive Officer
December 13, 1999
Note: Results for 1995 are Tyco as originally reported on a fiscal year end
of June 30. All other years are on a fiscal year end of September 30, are
before nonrecurring charges, and have been restated for mergers
accounted for under the pooling-of-interests accounting method.