Tyco International (NYSE:TYC) revealed on Thursday a stronger-than-anticipated 46% gain in third-quarter profit as its security solutions grew and productivity improved.
The maker of security products and services, fire protection and detection hardware posted net income of $364 million, or 76 cents a share, compared with $250 million, or 50 cents a share, in the same quarter last year.
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Excluding special items such as the electrical and metal products business that is now reported as an equity investment, the company earned $402 million, or 85 cents a share, ahead of average analyst estimates polled by Thomson Reuters of 76 cents.
Revenue for the three-week period was $4.3 billion, up from $4.27 billion a year ago, beating the Streets view of $4.21 billion.
We delivered a strong quarter operationally with improved top-line growth and operating margin expansion which drove an 18% year-over-year increase in earnings per share, said Tyco CEO Ed Breen. Our solid financial performance and strong balance sheet provides us with the financial flexibility to invest in our businesses, strengthen our core security, fire and flow control platforms and return excess cash to shareholders.
Tycos security solutions business saw income climb 42% to $327 million during the third quarter on 13% growth in sales, while fire protection's earnings increased 9%. Flow controls profit slipped 9%, partially offset by a 9% gain in sales.
The company, which has been acquiring companies in an effort to build its portfolio, recently completed the buys of Signature Security Group and KEF Holdings. Last week it announced the acquisition of Chemguard to expand its fire protection business.