PEMBROKE, BERMUDA -- Tyco Electronics reported first-quarter sales dropped 21% from a year ago, and the GAAP operating loss swung to a loss on lower demand and poorer margins. 

For the period ended Dec. 26, the company reported net sales of $2.8 billion and a GAAP operating loss of $21 million, down from $472 million in the prior-year period. The comany took restructuring charges of $78 million and $128 million in other charges during the quarter. The adjusted operating margin was 6.6%, down from 13.9%  a year ago.

In a press release, Tyco Electronics chief executive Tom Lynch said, "Our business is experiencing a significant deterioration in demand, especially in the global consumer markets served by our Electronic Components segment. In automotive -- our largest market -- sales declined 31% on an organic basis compared to the prior year. In addition to weak end-user demand, inventory adjustments across the supply chain contributed to our overall sales declines."

Total company orders declined 35% from the prior year. Orders in the Electronic Components segment declined 34% organically compared to the prior year and the book-to-bill ratio was 0.88, reflecting declines in all regions and nearly all end-markets.

The Electronic Components segment includes connectors and interconnect systems, relays, switches, circuit protection devices, touchscreens, sensors, and wire and cable. Sales in the segment declined 25% compared to the prior-year quarter and 22% organically. On an organic basis, the company experienced declines in the automotive (-31%), computer (-30%), communications (-19%) and industrial (-9%) markets.

For the second quarter, Tyco guided for a sales decline of 32 to 35% below prior-year sales of $3.7 billion, with an organic sales decline of 28 to 31%.

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