CSAA Signals
Vol. 9, No. 13 —November 6, 2003
440 Maple Avenue East, Suite 201, Vienna, VA 22180
703-242-4670; Fax 703-242-4675
Table of Contents

Tyco Announces Possible Security Unit Divestiture
Source: Tyco International Ltd.

Tyco International Ltd. announced on November 4, 203 that it has initiated a divestiture and restructuring program as part of its previously discussed strategy to sharpen the focus on its core businesses, simplify operations, and improve its cost structure.

As part of its divestiture program, Tyco intends to sell the Tyco Global Network (TGN), its undersea fiber optic telecommunications network, as well as to exit more than 50 other businesses. Measured on the basis of revenue, more than half of the planned divestitures are in the Fire & Security segment. Aside from the TGN, the Company is not identifying at this time which businesses will be exited.

Tyco's restructuring program includes the consolidation of 219 manufacturing, sales, distribution, and other facilities. These actions are expected to reduce employment levels by about 7,200 employees. Of the facilities to be consolidated, 184 are in Fire & Security, 30 are in Plastics & Adhesives, and the remainder are in Engineered Products & Services.

Tyco's Chairman and Chief Executive Officer Ed Breen said: "Our divestiture and restructuring moves will accelerate our ability to improve our profitability as we continue to make the transition from an acquisition-focused enterprise to a high-performing operating company. Although the TGN is the world's largest undersea fiber optic network, we believe consolidation is needed in this market. Since we are not prepared to invest further in this industry, we intend to exit the business. The other planned divestitures are small, non-strategic businesses that require a disproportionate amount of resources and management attention."

LA Council Rejects Taking Control of Alarm Policy
Source: Chris Reed, Security Sales & Integration Magazine

Councilwoman Cindy Miscikowski withdrew her motion on November, 2003 for the City Council to take over jurisdiction of the city’s new burglar alarm dispatch policy after a representative from the Police Commission said it will consider a 60-day delay in implementing the policy. Also, a majority of council members said they wouldn’t support the motion and were concerned that the policy didn’t need to be re-examined again.

For the complete Security Sales & Integration article, click here.