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Tyco profit down 54 percent from year ago

Diversified manufacturer Tyco International Inc. said Tuesday its fiscal first-quarter earnings fell 54 percent from a year-ago period.
/ Source: The Associated Press

Diversified manufacturer Tyco International Inc. said Tuesday its fiscal first-quarter earnings fell 54 percent from a year-ago period which included its former healthcare and electronics businesses. Still, adjusted profit topped Wall Street expectations by a wide margin.

The company, which makes security and fire protection products, earned $363 million, or 73 cents per share, in the quarter which ended Dec. 28, compared with $793 million, or $1.57 per share, a year ago. Excluding items, Tyco earned 49 cents per share from continuing operations in the 2006 period.

Revenue, which the company pre-announced in January, totaled $4.87 billion. At that time, the amount beat analysts’ consensus estimate of $4.75 billion and topped year-ago sales of $4.37 billion by 12 percent.

Two former Tyco segments, now called Tyco Electronics and health care business Covidien Ltd., were spun off and began operating as independent businesses last July.

Analysts surveyed by Thomson Financial expected adjusted profit of 57 cents per share on revenue of $4.86 billion. Tyco attributed its operating income growth to strength in its flow control and ADT worldwide businesses, as well as lower corporate expenses.

Tyco’s best-known and largest division, the ADT security monitoring business, saw revenue jump 7 percent, to $2 billion, mainly on double-digit growth in Asia and Latin America.

Revenue in the flow control segment, driven by strong sales of industrial valves and water and thermal controls, jumped 29 percent to $1.07 billion. Fire protection services posted a 5 percent jump in revenue, to $832 million, and the smaller safety products and electrical and metal products segments each saw revenue rise 10 percent.

“This performance, combined with the progress we are making on our key initiatives, puts us on track for a solid year in 2008,” Tyco Chief Executive Officer Ed Breen said in a statement.

Tyco reiterated its 2008 profit forecasts, raised just last month: a range of $2.60 to $2.70 per share, excluding separation and restructuring charges related to the spinoff of its healthcare and electronics units.

Wall Street is predicting full-year profit excluding items of $2.66 per share on sales of $20.10 billion.