Despite a slowing down in the US economy Bermuda-based Tyco International Ltd.

has recorded strong profits in first quarter results.

Shareholders of the diversified manufacturing company were smiling at the news that company stock realised a 24 percent increase at the end of the quarter.

Yesterday the company posted diluted earnings per share for its first quarter ended December 31, 2000 of 57 cents, a 24 percent increase over earnings of 46 cents per share in its first quarter of fiscal 2000.

Net income after extraordinary items and cumulative effect of accounting change rose to $979.5 million, an increase of 29.4 percent compared to $757 million last year.

"Each of Tyco's segments reported solid gains in revenue, operating profits and cash flow, even in the face of a turning economic environment,'' said L.

Dennis Kozlowski, Tyco's Chairman and Chief Executive Officer.

"The strongest growth was recorded by Tyco Electronics, where double-digit organic growth was enhanced by the successful integration of the Thomas & Betts OEM division.'' Sales for the quarter rose 21 percent to $8.02 billion compared with last year's $6.64 billion. These results are before non-recurring items. After giving effect to such items, diluted earnings per share before extraordinary items and cumulative effect of accounting change for the first quarter of fiscal 2001 were 57 cents, or $1.01 billion, compared to 44 cents, or $757.2 million, in the first quarter of fiscal 2000.

"Although we face an uncertain economic environment, we remain comfortable with Tyco's outlook for the remainder of 2001,'' said Mr. Kozlowski.

"We have in place a very deliberate strategy to focus each of the businesses on recurring and other sources of revenue and earnings that are less sensitive to economic cycles,'' he added.

"Based on current business trends, we believe that although some parts of our business will see slower growth, overall Tyco's results will be in line with our expectations. We will benefit from the integration of the acquisitions we have recently completed, particularly from the resulting synergies.'' Meanwhile Tycom a subsidiary of Tyco International Ltd. also reported strong earnings for the first quarter.

Tycom, the transoceanic fibre optic manufacturer arm of Tyco realised net income for the first fiscal quarter ended December 31, 2000, of $72.8 million.

The figure represents an increase of 16 percent over the same period last year.

EBITDA reached $107.8 million, or 21 percent of net sales compared to 19 percent of net sales a year earlier. Diluted earnings per share for the quarter were 14 cents.

"This is a great start for the year and a solid foundation for continued strong performance,'' said Neil Garvey, President and CEO of TyCom.

"We have recorded outstanding results. Cash flows from our $2.9 billion backlog, combined with our available cash of $2.0 billion, will continue to provide the funding for the build out of the TyCom Global Network (TGN).

Healthy quarterly profit for Tyco "We have entered into agreements to supply capacity on both the transpacific and transatlantic routes, and construction activities are proceeding on schedule,'' he added.

Revenues for the quarter were $523.2 million, compared to $629.2 million for the comparable quarter in 1999. This reduction of 17 percent reflects TyCom's continued transition from a supplier of undersea systems to also being an owner-supplier of TGN.

During this fiscal year a portion of manufacturing capacity is dedicated to the build out of the TGN.

"TyCom is coming off another great quarter,'' said L. Dennis Kozlowski, Executive Chairman of TyCom and Chairman and CEO of Tyco International.

"We believe the business is well positioned to provide strong earnings driven by the supply of third-party systems and sales of capacity on the TGN.'' TyCom also announced that it continues to move forward with deployment of the TyCom Global Network. In recent months landing licenses have been received in the US and Europe.

Construction has begun on the global network management centre in the US, as well as regional operations centres in London and Guam and cable stations elsewhere in the world.