Tyco Electronics 4Q Profit Plunges

The Associated Press

Tyco Electronics Ltd. said Wednesday its fiscal fourth-quarter profit fell more than 50 percent, though its adjusted earnings beat Wall Street estimates. Shares surged in morning trading.

Net income of $93 million, or 20 cents per share, was down from $202 million, or 43 cents per share in the same quarter last year.

However, the maker of engineered electronic components, networking equipment and undersea telecommunications equipment said that adjusting for restructuring charges, taxes and retirement of debt, earnings were $140 million, or 30 cents per share.

Analysts surveyed by Thomson Reuters expected earnings to be 27 cents per share. Analysts typically exclude one-time gains and charges.

Revenue for the period ended Sept. 25 was $2.7 billion, down 25 percent from $3.58 billion in the year-ago quarter.

Analysts expected revenue of $2.6 billion.

CEO Tom Lynch cited a "significant deterioration" in demand, particularly in global consumer markets served by the company's electronic components business. In addition, sales fell 31 percent from the previous year in Tyco Electronics' automotive business.