ADT 2001 Annual Report Download - page 20

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Not so. TyCom, which is supported by Tyco’s very strong
balance sheet, will remain standing after many competi-
tors have buckled. Over time, TyCom should achieve an
outstanding return on its investment in the TGN.
Demand for sub-sea communications continues to grow
and we are the low-cost supplier with a unique global
product offering.
>TYCO FIRE AND SECURITY SERVICES
In Tyco’s Fire and Security Services segment, operating
income increased an impressive 38 percent to $2 billion,
from $1.5 billion last year. Revenues jumped to $10.5 bil-
lion, compared to last year’s $8.5 billion.
The unit enjoyed dramatic organic growth of 17 percent,
led by worldwide electronic security sales. In August 2001
alone, we opened 100,000 new accounts in North
America, compared to 75,000 in August 2000. Including
the acquisitions of the security businesses of SecurityLink
and Southern California Edison, we increased our North
American customer base to five million in fiscal 2001.
Sales of residential systems were especially strong in
Germany, Latin America and Asia.
Our airport security monitoring business saw major
sales gains. You will find our fire and/or security prod-
ucts—fire alarms, closed circuit TV, access systems and
security monitoring—in virtually every airport in the
world, and we expect strong growth in this business.
The recent acquisition of Sensormatic, the world’s lead-
ing retail security firm, allows us to offer a complete
security package to retailers around the globe. The acqui-
sition of Simplex Time Recorder makes us the largest fire
alarm company in the world.
We continue to benefit globally from tougher fire protec-
tion regulations and the growth of our fire inspection
business.
Tyco Valves & Controls had a fine year, seeing increased
demand for products in the oil and gas, petrochemical
and power generation industries. Excellent results were
also turned in by Tyco Thermal Controls, which is sup-
plying heat-tracing equipment for two large oil sand
projects in western Canada operated by Shell Oil and
Suncor Energy. Tyco Infrastructure Services won con-
tracts to design, build, own, operate and finance large
water and wastewater facilities in several countries.
>TYCO HEALTHCARE AND SPECIALTY PRODUCTS
Tyco Healthcare and Specialty Products had an outstand-
ing year, with operating income increasing to $2.1 billion,
up 36 percent from $1.5 billion in the prior year.
Revenues grew 37 percent to $8.8 billion, as compared
with $6.5 billion last year.
Revenues increased throughout the world, including
stellar international sales with double-digit organic
growth in Japan and Latin America. Tyco Healthcare
continued to increase direct sales operations abroad,
replacing distributors with direct salespeople in China,
Brazil and Singapore.
New products included a highly competitive line of
sutures and an improved trocar that allows doctors to
enter a body cavity in a much less invasive manner. Tyco
Healthcare increased its lead in laparoscopic surgical
instruments, partly by enhancing its number one posi-
tion in hernia repair, one of the fastest growing markets
for minimally invasive procedures.
Tyco Healthcare continues to invest in research and
development to drive new product innovation, increase
market share and improve profitability. The company’s
focus on “mid-technology” medical products, where
Tyco’s manufacturing and distribution expertise give
it a competitive advantage, offers a stable platform
for growth.
FREE CASH FLOW
$ in millions
97 98 99 00 01
$309 $661 $1,729 $3,312 $4,740