Tyco International Ltd., a manufacturing and services conglomerate which plans to break itself into three parts next year, reported Thursday its earnings fell 22 percent in the first quarter as it recorded a loss on asset sales. It results from continuing operations came in above its previous estimate, however.
The company, best known for its ADT home alarm systems, said quarterly profit totaled $570 million, or 28 cents per share, for the three months ended Dec. 30, down from $730 million, or 34 cents per share, a year earlier.
Its latest results included a $237 million loss from discontinued operations on the sale of its plastics, adhesives and Ludlow coated products businesses, as well as 2 cents per share from stock option expensing.
Earnings from continuing operations were $807 million, or 39 cents per share.
Revenue edged up to $9.71 billion from $9.6 billion a year earlier.
In January, Tyco said it expected earnings from continuing operations of 38 cents per share excluding items. Analysts polled by Thomson Financial expected Tyco would have $9.81 billion in revenue.
“On an overall basis, we delivered good organic growth; however, we are not satisfied with our operating performance this quarter, and we are focused on addressing the issues that arose in several areas,” said Chairman and Chief Executive Ed Breen in a statement. “We are confident that we are taking the right actions and expect to make meaningful progress throughout the remainder of the year.”
Tyco is still recovering from scandals that saw its longtime former chief executive sentenced to prison.
Last month, it said it plans to separate its electronics and health care businesses from its remaining operations that include fire protection systems. The breakup is planned for early 2007.
For the second quarter, Tyco forecast earnings from continuing operations on Thursday of 40 cents to 42 cents per share, excluding items. The company said it expects to pay about $450 million in cash during the quarter for previously disclosed legal matters.
The company also backed its full-year expectations for earnings of $1.85 to $1.92 per share from continuing operations, excluding items. Analysts expect earnings of 47 cents per share for the quarter and $1.88 per share for the year.