Diversified conglomerate Tyco International Ltd. (TYC) on Tuesday reported a decline in fourth-quarter profit, hit by double-digit revenue declines across most segments, and the absence of a year-ago gain from discontinued operations. Adjusted earnings from continuing operations topped Wall Street view. For the full year, the company reported a loss owing to hefty goodwill and intangible asset impairments.
Net income for the quarter declined to $205 million or $0.43 per share from $434 million or $0.91 per share in the prior year. The company's third-quarter net income was $287 million or $0.60 per share.
Income from continuing operations declined to $207 million or $0.44 per share from $264 million or $0.55 per share in the prior year. Special items reduced earnings by $0.17 per share in the just concluded quarter. Income from continuing operations for the third quarter was $243 million or $0.51 per share.
Income from continuing operations before special items was $291 million or $0.61 per share. On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.54 per share for the quarter.
The company reported a loss from discontinued operations of $2 million for the just concluded quarter, compared to an income of $170 million in the same period last year.
Net revenue for the quarter declined 16% to $4.421 billion from $5.284 billion in the prior year quarter. Analysts expected revenues of $4.32 billion. On an organic basis, fourth-quarter revenue decline was 12%. The company's third-quarter revenue was $4.24 billion.
Operating income for the fourth quarter declined to $315 million from $429 million. Operating margin slipped to 7.1% from 8.1%.
Revenue from ADT Worldwide dropped 9% to $1.799 billion from $1.981 billion. Organic revenue decline was 5% and 4% decline was due to foreign currency changes. The segment's operating profit rose to $226 million from $203 million. The company noted that Systems installation and service revenue declined 14% organically, mainly due to weakness in North America and Europe, as a result of continuing drop in sales to commercial customers, including the retailer end market.
Flow Control generated $1.010 billion in fourth-quarter revenue, lower by 15% from $1.188 billion generated last year. Organic revenue decline was 10%. Operating profit for the segment dipped to $126 million from $152 million.
Fire Protection Services had fourth-quarter revenues of $904 million, down 11% from last year's $1.015 billion, with an organic revenue decline of 7%. Operating profit slipped to $65 million from $71 million.
Electrical and Metal Products revenues slumped 46% to $326 million from $591 million, primarily due to lower selling prices for both steel and copper products. Organic revenue decline was 41%. The segment's operating profit plunged to $12 million from $88 million.
Safety Products reported revenues of $382 million for the quarter, a 25% drop from $507 million reported last year. The company noted that organic revenue declined 22% for the quarter due to lower volume across the Fire Suppression, Electronic Security and Life Safety businesses, resulting from weaker demand in end markets. Operating profit fell to $46 million from $65 million.
Cost of sales dropped to $2.814 billion from $3.417 billion, while Selling, general and administrative expenses slipped to $1.193 billion from $1.301 billion in the previous year.
Restructuring, asset impairment and divestiture charges were $99 million in the quarter, compared to $131 million last year. Income tax expense for the quarter was $23 million, compared to $86 million last year.
Commenting on the quarter, Ed Breen, Tyco Chairman and Chief Executive Officer, said, "Our operating results for the fourth quarter reflect good progress in reducing our overall cost structure while we continue to invest in the future growth of our businesses.''
For the fiscal year, the company reported a net loss of $1.798 billion or $3.80 per share, compared to net income of $1.553 billion or $3.19 per share reported last year. Net revenue declined 15% to $17.237 billion from $20.199 billion. The company recorded goodwill and intangible asset impairments of $2.705 billion in 2009, compared to $10 million last year.
Among others in the industry, Honeywell International Inc. (HON) said last month that its third-quarter net income declined to $619 million from $723 million reported a year earlier. Net income attributable to Honeywell was $608 million or $0.80 per share, compared to $719 million or $0.97 per share in the year-ago quarter. Quarterly net sales amounted to $7.70 billion, a decline from the previous year's net sales of $9.28 billion.
TYC closed Monday's regular trade at $38.44, up from the previous close of $37.70, on 3.70 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.