Tyco (TYC) beat fiscal fourth-quarter earnings targets and set a $600 million restructuring plan that aims to boost efficiency.
The industrial conglomerate also guided slightly below the Wall Street consensus for its first quarter.
The company made $1.27 billion, or 63 cents a share, from continuing operations for the quarter ended Sept. 29, up from the year-ago $867 million, or 41 cents a share. Latest-quarter earnings were aided to the tune of 12 cents a share by one-time items.
Revenue rose to $10.76 billion from $9.94 billion a year earlier.
Analysts surveyed by Thomson Financial were looking for a 49-cent profit on sales of $10.54 billion.
"This was a quarter of continued progress for Tyco, with solid organic growth, increased operating income and strong cash flow," said CEO Ed Breen. "We are progressing steadily toward separation and are on schedule for a January filing of separation-related documents with the
Securities and Exchange Commission
Tyco said cash flow from operating activities was $2.4 billion in the latest quarter, and free cash flow was $1.9 billion. Tyco bought back 24 million shares for $625 million during the quarter.
The company says it expects to make 42 to 44 cents a share for the first quarter, below the 46-cent Thomson target.