Tyco, the US firm which has an electronics operation in Dublin and a healthcare unit in Tullamore, Co Offaly, is pursuing at least $3 billion in cost savings and working capital improvements over the next three years.
The company, which became embroiled in a fraud investigation last year, will also seek to nearly halve its debt pile before considering using its cash for strategic acquisitions, according to Mr David FitzPatrick, chief financial officer of the conglomerate.
In an interview, Mr FitzPatrick said he would use Tyco's cash when its debt levels fell to $10-$12 billion, which is "out a couple of years". Tyco's long-term debt stands at about $21.6 billion.
Mr FitzPatrick outlined plans to remake Tyco - whose worldwide portfolio ranges from medical instruments to security products - into a finely-tuned operating company, rather than the acquisitions machine it was under previous management.
He also sees himself and Mr Edward Breen, chief executive officer, making progress in changing Tyco's culture - both ethical and operational - and improving its financial systems.
The two men find themselves in charge of a company with litigation liability, regulatory questions and a decimated reputation.
Their predecessors Mr Mark Swartz, former chief financial officer, and Mr Dennis Kozlowski, former chief executive, are on trial for allegedly stealing $600 million via unapproved compensation and improper share deals.
Mr FitzPatrick seeks growth from improving factory efficiencies and streamlining a company which had $37 billion of sales in 2002 and is the product of a string of poorly-integrated acquisitions.
