Now let me quickly recap this quarter's results. Revenue in the quarter of $4.5 billion increased 4% year-over-year, including a 4 percentage point decline related to foreign currency. Changes in foreign currency exchange rates were more of a headwind than we ever duly anticipated and cost us about 1 percentage point of revenue growth compared to our previous expectations. Organic revenue grew 5%. Earnings per share from continuing operations attributable to Tyco common shareholder was $0.54 and included charges of $0.47 related to special items. Earnings per share from continuing operations before special items was $1.01.
Now let me turn the call over to Ed for some opening comments.
Edward D. Breen
Thanks, Antonella, and good morning, everyone. Overall, this was a very good quarter for Tyco, reflecting solid operational performance across Fire & Security, ADT and Flow Control. We had good top line growth, a 20% increase in operating income and strong operating margin expansion. Continued recurring revenue growth in ADT, volume leverage in our manufacturing businesses at Flow Control and Fire & Security, along with productivity, cost containment and restructuring initiatives, all contributed to our 190 basis points of operating margin expansion in the quarter. We delivered $1.01 in earnings per share before special items, marking the first time since the 2007 separation that we surpassed the $1 mark in quarterly earnings. This represents a 19% increase year-over-year.Now let me give you a quick overview of our results for each of our businesses. Fire & Security had another strong quarter. Operating income before special items grew 4x as fast as revenue, highlighting the value of a nice mix of service, installation and product revenue. In ADT, recurring revenue, which represents almost 90% of ADT's total revenue, grew about 6% in the quarter with an increase in both the account base and average revenue per user. In Flow Control, increased volume in Valves, execution of Water projects and increased volume, along with the beneficial mix in the Thermal business, were the key drivers of the third quarter operating margin expansion. We surpassed the 13% operating margin we had expected to approach in the quarter and continue to be on track to achieve a 14% operating margin in the fourth quarter.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV