Tyco Electronics raises fiscal 3Q Outlook

The company currently expects sales of $2.45 billion to $2.55 billion, versus the previous guidance range of $2.35 billion to $2.45 billion. The increase in revenue is due to improved sales in the consumer-related end markets served by the Electronic Components segment, additional project revenue in the Undersea Telecommunications segment and foreign currency translation. GAAP income from operations is now expected to be $25 million to $55 million, which includes restructuring charges of approximately $60 million. Adjusted operating income is expected to be $85 million to $115 million, versus prior guidance of $40 million to $70 million. The improvement in adjusted operating income versus prior guidance is due to increased revenue in the Electronic Components and Undersea Telecommunications segments, as well as accelerated execution on restructuring and other cost actions. The following table shows a comparison of the company's prior outlook issued as part of our fiscal second quarter earnings release and the revised outlook: