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TYCO REPORTS HIGHER FIRST QUARTER NET INCOME; EARNS $.60 PER SHARE VERSUS $.53 PER SHARE FOR YEAR EARLIER PERIOD

 EXETER, N.H., Oct. 27 /PRNewswire/ -- Tyco Laboratories, Inc. (NYSE: TYC) today reported higher earnings for its first quarter ended Sept. 30, 1993. Net income rose to $27.4 million, or 60 cents per share, compared with $24.5 million, or 53 cents per share (before the cumulative effect of accounting changes), earned in the same period last year. Sales for the quarter were $790 million versus $808.7 million a year ago.
 "We were pleased to report higher profits for this year's first fiscal quarter," said L. Dennis Kozlowski, Tyco's chairman and chief executive officer. "Earnings were up at our Flow Control, Electrical and Electronic Components and Packaging Materials segments, even though the U.S. economy is still experiencing a sluggish recovery."
 "While earnings are our Fire Protection segment were lower than a year ago, we were encouraged by improvement in our levels of profitability in North America," said Kozlowski. "Also, in Europe and Australia we expect our strong focus on cost reductions, as well as the restructuring and downsizing which we are putting in place, will help offset the recessionary environment in these areas of the world."
 Flow Control
 Sales at Tyco's Flow Control segment rose to $220.8 million from the $209.5 million reported for last year's first quarter. Profits increased to $16.5 million, versus the $14.7 million reported a year earlier. Continued strong sales of Allied pipe and tubular products, along with increased sales of valve products, were among the major factors contributing to the higher earnings in this segment.
 Fire Protection
 Worldwide sales in Tyco's Fire Protection segment were $370.8 million in the first quarter versus $403.6 million recorded in the same period last year. Profits for the segment were $15.8 million versus $18.3 million for the comparable period last year. In North America, sales were flat, however, margins and earnings were up substantially. This improvement was offset by lower sales and earnings in our European and Australian units reflecting the current economic conditions in those areas. The impact of the increase in the value of the U.S. dollar, versus a year ago, resulted in an approximate $35 million reduction of sales and $1.9 million reduction in profit (reported in U.S. dollars) at our European and Australian units.
 Electrical and Electronic Components
 First quarter profits at the company's Electrical and Electronic Components group rose to $16.5 million on sales of $109.7 million. Last year this group earned $15.6 million on sales of $106.9 million. Positive results at Allied's Conduit Products unit and Simplex's undersea fiber optic cable operation provided the increase.
 Packaging Materials
 Tyco's Packaging Materials group had first quarter sales of $88.7 million, which were approximately the same as last year. However, margins improved as earnings grew to $10.4 million compared with $9.1 million a year ago. Armin's polyethylene operations as well as each of the Ludlow units continued to post strong performances.
 Tyco is the world's largest manufacturer and distributor of fire protection systems, and maintains leadership positions in its markets for flow control products, electrical and electronic components and packaging materials. The company operates in more than 40 countries around the world.
 TYCO LABORATORIES INC.
 Results of Operations
 (In thousands except per share data)
 Three Months Ended
 9/30/93 9/30/92(1)
 Sales $789,995 $808,732
 Income before income taxes
 and cumulative effect of
 accounting changes $43,795 $41,513
 Income taxes (16,347) (17,051)
 Income bef.
 cumulative effect
 of accounting changes 27,448 24,462
 Cumulative effect of
 accounting changes --- (71,040)
 Net income (Loss) $27,448 ($46,578)
 Earn. (Loss) Per Share:
 Income bef. Cumulative
 effect of accounting
 changes 60 cents 53 cents
 Cumulative effect of
 accounting changes --- (1.55)
 Net income (loss)
 per share 60 cents ($1.02)
 Common equivalent
 shares 46,000 45,850
 (1) During the fourth quarter of fiscal 1993, the company adopted new accounting pronouncements for income taxes and post-retirement medical benefits effective July 1, 1992, which resulted in an after-tax charge of $71.0 million or $1.55 per share. Accordingly, the first quarter fiscal 1993 results have been restated to reflect the effects of adoption. Prior to restatement, reported earnings for the first quarter of fiscal 1993 were 54 cents per share.
 -0- 10/27/93
 /CONTACT: Irving Gutin, senior vice president of Tyco, 603-778-9700/
 (TYC)


CO: Tyco Laboratories, Inc. ST: New Hampshire IN: CPR SU: ERN

CM-JL -- NE009 -- 7183 10/27/93 10:27 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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