Tyco Swings to 4Q Profit, Hikes Dividend

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Published November 14, 2013

| FOXBusiness

Tyco International (TYC) swung to a profit in the fourth quarter, a year after the industrial conglomerate’s results were impacted by the extinguishment of debt.

The company also said Thursday it acquired Westfire, a provider of fire-protection services, for an undisclosed amount. The transaction, which closed last week, expands Tyco’s footprint in services. Westfire is expected to generate $80 million in revenue in fiscal 2014.

Meanwhile, Tyco’s board approved a 13% increase in its quarterly dividend to 72 cents a share.

The company reported a profit of $166 million, or 35 cents a share, versus a year-ago loss of $419 million, or 91 cents a share. Excluding one-time charges, adjusted per-share earnings from continuing operations rose to 52 cents from 34 cents.

Revenue ticked 1.2% higher to $2.76 billion. Organic revenue increased 1%.

Per-share earnings for the latest period matched Wall Street expectations, while revenue was slightly ahead of an estimate for $2.74 billion.

After spinning off some of its businesses, Switzerland-based Tyco focused its attention of fire-suppression systems for commercial buildings and safety equipment.

Last year, the company spun off its North American security business, ADT (ADT). It also spun off its pipe and valve business and merged it with Pentair (PNR), which makes pump filters.

CEO George Oliver noted that Tyco completed five acquisitions and accelerated its service growth in its first year as a refocused company.

In the final quarter, systems installation and services revenue was down 4.4% in North America but up 0.9% internationally. Global products revenue jumped 12%.

Shares rallied 1.6% to $37.33 Thursday morning.

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