SCHEDULE 14A
(RULE 14a-101)
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE
SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )
Filed by the Registrant {X}
Filed by a Party other than the Registrant {_}
Check the appropriate box:
{_} Preliminary Proxy Statement
{_} Confidential, For Use of the Commission Only (as permitted by
Rule 14a-6(e)(2))
{_} Definitive Proxy Statement
{_} Definitive Additional Materials
{X} Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
AMP INCORPORATED
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(Name of Registrant as specified in its charter)
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(Name of person(s) filing proxy statement, if other than Registrant)
Payment of Filing Fee (Check the appropriate box):
{X} No fee required.
{_} Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11:
(4) Proposed maximum aggregate value of transactions:
(5) Total fee paid.
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{_} Fee paid previously with preliminary materials.
{_} Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting
fee was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
Management's Financial Plan*
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Dollars in Millions, Except per Share Data
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'98 - '99
1998E 1999E Change 2000E
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Revenues $5,615 $5,727 $112 $6,128
Cost/Expenses $5,072 $4,954 $(118)** $1,011
Operating Income $543 $773 $230 $1,011
Margin% 9.7% 13.5% 16.5%
Net Income $340 $505 $660
EPS $1.55 $2.30 $3.00
Revenue Growth 2.0% 7.0%
EPS Growth 48.4% 30.4%
[AMP LOGO]
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* Based on completed status to date of the Profit Improvement actions.
Management anticipates that it is likely that the 1999 and 2000
estimates will be revised upward in the near term based on new
initiatives and refined estimates of actions currently in progress.
** Profit Improvement Plan delivers at least $205 million of hard cost
savings in 1999.
