Tyco Tops Estimates
Tyco International (TYC) swung to fiscal third-quarter loss as it recorded a hefty charge to settle a lawsuit, but its adjusted results beat Wall Street's expectation.
For the quarter ended June 29, the Bermuda-based conglomerate posted a loss of $3.55 billion, or $7.18 a share, compared with a year-earlier profit of $868 million, or $1.68 a share.
The results included charges of $3.31 billion, or $6.68 a share, including a $2.88 billion charge tied to the settlement of a securities class-action suit filed against the company and its former CEO, the imprisoned Dennis Kozlowski.
Excluding charges, earnings rose to $277 million, or 55 cents a share, from $252 million, or 49 cents a share, a year earlier. Analysts polled by Thomson Financial projected earnings of 48 cents a share on this basis.Revenue climbed to $5.09 billion from $4.72 billion, topping Wall Street's target of $5.01 billion. "Operationally, Tyco International's performance came in at the high end of our estimates as we had solid growth in revenue and operating income before special items driven by improvements across most of our businesses," said Chairman and CEO Ed Breen. Among the company's units, its ADT Worldwide security division saw revenue rise 6% to $1.91 billion. Its fire protection services unit recorded a 7% rise in revenue to $882 million. The company's flow control segment posted the biggest revenue rise. The division, which makes valves, pipes and fittings, reported 22% revenue growth to $982 million. Elsewhere, safety products revenue rose 5% to $452 million, while electrical products revenue slipped 1% to $519 million.
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