Tyco 4Q revenue tops analysts' estimates
NEW YORK (AP) — Fire protection and security company Tyco International Ltd. lost $419 million in its fourth quarter, mostly because of a loss on debt extinguishment and tax-related items.
Last month the Switzerland-based company announced that it completed its long-planned separation into three publicly traded companies covering its ADT North America residential security business, flow control products and commercial fire equipment.
For the period ended Sept. 28, Tyco's loss attributable to common shareholders amounted to 91 cents per share. A year earlier it reported net income of $397 million, or 84 cents per share.
Excluding a 98 cents per share loss on debt extinguishment, 54 cents per share for tax-related items, and other costs, earnings were 33 cents per share. Analysts expected earnings of 38 cents per share, according to a FactSet survey.
Revenue dropped 3 percent to $2.73 billion from $2.8 billion, hurt by foreign currency exchange rates and an extra week in the prior-year period. Analysts expected $2.72 billion in revenue.
Tyco said Wednesday that in connection with the spinoff of ADT and its flow control operations, its business is now realigned into three segments: North America systems installation and services, rest of world systems installation and services and global products.
Revenue for the North America systems installation and services unit fell 5 percent mostly because the year-ago period included an extra week of revenue. For the rest of world systems installation and services division, revenue dropped 7 percent, hurt by foreign currency exchange rates.
Revenue for the global products segment climbed 15 percent, led by stronger sales of security products.
For the year, Tyco reported net income of $472 million, or $1.02 per share, down from $1.72 billion, or $3.59 per share, in the previous year. Adjusted earnings from continuing operations were $1.35 per share.
Annual revenue declined 2 percent to $10.4 billion from $10.56 billion. Taking out the electrical metals products business, in which a majority stake was previously sold, revenue edged up 2 percent.
Its shares finished at $27.33 on Tuesday.