ADT 2005 Annual Report Download - page 83

Pharmaceuticals
The Mallinckrodt Pharmaceutical Division is comprised of three businesses—Bulk Pharmaceuticals
(active pharmaceutical ingredients), Dosage Pharmaceuticals and Specialty Chemicals. The Bulk
Pharmaceuticals business is the largest producer of both medicinal narcotics and acetaminophen
worldwide. Ninety-five percent of these products are used within the pharmaceutical industry to
manufacture dosage form drugs. The Dosage Pharmaceuticals business has four distinct divisions:
generic narcotic pharmaceuticals, branded central nervous systems products, addiction treatment
products and contract pharmaceutical manufacturing for third parties. These products are sold to major
wholesalers and drug store chains primarily in the United States. The Specialty Chemicals business
includes a wide array of specialty chemicals targeted at: research and development and analytical
laboratories; process materials used to manufacture biopharmaceuticals; and specialty chemicals used to
manufacture semiconductor chips, many of which are sold under the J.T. BAKER name in the United
States.
Retail
The Retail Division is the industry leader for retail brand adult incontinent care, infant care and
feminine hygiene products within continental North America. This division develops, manufactures and
markets a wide variety of retail brand products for the North American retail markets supplying a
broad majority of retail mass merchandisers, food stores and drug stores. Through our ‘‘first-to-market’’
approach, the Retail Division helps retailers such as Wal-Mart, Target, Kroger, Albertson’s, CVS,
Loblaw, Dollar General and Family Dollar manage their categories and build their own store brand
presence with the high-quality products consumers demand.
Tyco Healthcare’s competitors include Johnson & Johnson, Becton Dickinson and C.R. Bard,
among others, and competition is based on breadth of product offerings, quality of product, service and
price.
IV. Engineered Products and Services
Tyco is the world’s leading manufacturer of industrial valves and controls. With 2005 net revenue
of $6.5 billion, our Engineered Products and Services businesses comprise 16% of our consolidated net
revenue. In 2004 and 2003, net revenue totaled $6.0 billion or 15% of our consolidated net revenue
and $4.5 billion or 13% of our consolidated net revenue, respectively. Net revenue in 2005 and 2004
includes $649 million and $739 million, respectively, representing a change in how we classify certain
sub-contract and other costs that are paid by Tyco Infrastructure Services and re-billed to their
customers. These costs were historically treated as ‘‘pass through’’ and were therefore not included in
reported revenue and cost of revenue of Tyco Infrastructure Services. (See Note 1 to the Consolidated
Financial Statements). The group’s products and services include:
• manufacturing and servicing industrial, commercial, water and wastewater valves and related
devices, as well as providing other engineered products solutions;
• manufacturing steel pipe and tubular goods, security fence products and electrical raceway
products, including steel conduit, pre-wired armored cable, flexible conduit, steel support systems
and fasteners, cable tray and cable ladder;
• providing a broad range of consulting, engineering and construction management and operating
services for water, wastewater, environmental, transportation and infrastructure markets; and
• manufacturing and distributing fire sprinkler devices, valves, steel and plastic pipe and fittings
and pipe couplings used in commercial, residential and industrial fire protection systems.
Tyco Engineered Products and Services is comprised of three reporting units: Flow Control and
Fire & Building Products, Electrical & Metal Products and Infrastructure Services.
2005 Financials 7