Security products maker Tyco International Ltd. (TYC: Quote) on Tuesday said profit in the first quarter declined from last year, hurt by some items. Adjusted earnings topped Wall Street view.
Net income attributable to Tyco common shareholders plunged to $333 million or $0.71 per share from $659 million or $1.34 per share in the prior year. Income from continuing operations last year was $1 per share.
Special items reduced earnings by $0.13 per share in the just concluded quarter, whereas the prior-year results benefited $0.25 per share from special items.
Adjusted earnings per share from continuing operations increased to $0.84 from $0.75. On average, 17 analysts polled by Thomson Reuters expected the company to earn $0.79 per share in the quarter. Analysts' estimates typically exclude special items.
Net revenue slipped 4 percent to $4.208 billion from $4.379 billion in the prior year. Wall Street expected revenues of $4.26 billion for the quarter.
Excluding the Electrical & Metal Products business, which is now reported as an equity investment, revenue grew 4 percent. Organic revenue growth also was 4 percent.
Operating margin before special items improved 100 basis points to 13 percent.
Tyco Chairman and Chief Executive Officer Ed Breen said, "We delivered a strong quarter operationally with continued organic revenue growth supported by improving order activity. The year over year improvement in our operating margin reflects increased volume in our product businesses, a higher mix of service revenue and the benefits of our cost containment and restructuring actions."
Revenue improved 2 percent in the Security Solutions segment to $2.16 billion with organic revenue growth of 3 percent.
Flow Control revenues increased 12 percent to $923 million. Excluding the impact of foreign currency, orders increased 16 percent from last year.
In Fire Protection business, revenue rose 3 percent to $1.13 billion and excluding the impact of foreign currency, orders increased 6 percent year-over-year .
Further, the company said it is on track with its plan to separate Tyco into three standalone public companies and the proposed transaction is expected to be complated by the end of the fiscal fourth quarter.
TYC closed on Monday at $49.21, compared to the previous close of $49.20, on 2.83 million shares.
by RTT Staff Writer
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