Tyco Electronics Affirms Q4 Revenue and Adjusted EPS Guidance; Announces Definitive Agreement to Sell Mechatronics Business

Tyco Electronics Ltd. TEL today announced that it has entered into a definitive agreement to sell its mechatronics business located in Niefern, Germany to L. Possehl & Co. mbH. The closing of the transaction is expected to occur within 30 days and, in connection with the sale, the company will record a non-cash pre-tax loss of approximately $45 million. The business designs and manufactures customer-specific components, primarily for the automotive industry, and is expected to generate sales of approximately $100 million in the current fiscal year. The company continues to expect adjusted EPS from continuing operations of $0.68 to $0.72 and revenues of $3.05 to $3.15 billion for the fiscal quarter ending Sept. 24, 2010. Current expectations for the quarter, including the sale transaction, are as follows: