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Tyco Swings to Profit, Plans Unit Spinoff

Tyco beat expectations in the second quarter as it swung to a profit from a year-earlier loss.
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SCHAFFHAUSEN, Switzerland (


) --

Tyco International


swung to a profit in the second quarter as it experienced modestly higher-than-expected revenue with continued strength in its recurring revenue and service activities.

Tyco also said it plans to spin off its electrical and metal products business by the first half of fiscal 2011.

Tyco reported earnings of $310 million, or 65 cents a share, compared with a loss of $2.57 billion, or $5.42 the year before. Excluding special items, earnings were 59 cents a share.

Revenue came in at $4.169 billion in the second quarter, up from $4.15 billion in the year-ago period.

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The average estimate of analysts surveyed by Thomson Reuters was for earnings of 55 cents a share on revenue of $4.14 billion.

During the quarter, the company recorded an organic revenue decline of 1.5%, global recurring revenue growth of 4% organically, and systems installation and service revenue decline of 8% organically, due to continued softness in North America and Europe.

Tyco said it's on track to complete the acquisition of Broadview Security next month.

-- Reported by Andrea Tse in New York

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