Tyco 3Q EPS Beats Expectations, Sales Miss


Tyco International Ltd, which is in the process of splitting into three companies, reported lower quarterly net earnings on Tuesday and said it was on track to complete its breakup in September.

Net earnings fell to $242 million, or 51 cents per share, in the third quarter ended on June 29 from $359 million, or 76 cents per share, a year earlier.

Continue Reading Below

Profit from continuing operations, excluding items, was $1.01 a share. Analysts on average were expecting 93 cents, according to Thomson Reuters I/B/E/S.

Sales rose 4 percent to $4.46 billion, below Wall Street estimates of $4.54 billion.

Tyco's biggest segment, which makes fire safety and commercial security systems, posted a 3 percent sales gain, but operating income jumped by a double-digit percentage rate, helped by costs cuts, a shift to high-margin service revenue, and increased volumes.

The proposed break-up of the company into three businesses is on track for the end of September, Tyco said. ADT home security systems and Tyco Fire and Security will be stand-alone companies.

Tyco has already agreed to merge its flow control business with Pentair Inc, a deal that would double the size of that company and make it the largest player in its sector.