Tyco falls to third-quarter loss
Tyco International Ltd said on Tuesday it fell to a fiscal third-quarter loss due to hefty charges primarily related to a legal settlement, but adjusted results managed to top Wall Street's expectations.
By Agencies |
WEST WINDSOR, NJ: Tyco International Ltd said on Tuesday it fell to a fiscal third-quarter loss due to hefty charges primarily related to a legal settlement, but adjusted results managed to top Wall Street's expectations.
The diversified conglomerate agreed to set up a $3 billion cash fund in May to satisfy shareholder claims arising from actions by ex-chief executive L Dennis Kozlowski and other top officers convicted of looting the company and inflating its value.
Tyco completed spin-offs of its health care and electronics units on June 29.
The company, now focused on fire and security and engineered products, reported a loss of $3.55 billion, or $7.18 per share, compared with a profit of $868 million, or $1.68 per share, in the previous year.
Loss from continuing operations was $3.04 billion, or $6.13 per share, versus income from continuing operations of $170 million, or 33 cents per share.
Excluding $3.3 billion related to a legal settlement, charges and other items, Tyco posted income from continuing operations of $277 million, or 55 cents per share, compared with $252 million, or 49 cents per share.
Analysts polled by Thomson Financial expected earnings of 48 cents per share.
Shares fell $1.23, more than 2 percent, to $46.77 in midday trading Tuesday.
Quarterly revenue for the period ended June 29 climbed 8 percent to $5.09 billion from $4.72 billion a year ago.
Consensus estimates put sales at $5.01 billion.
Tyco said it expects fourth-quarter revenue growth between 6 per cent and 7 per cent, excluding infrastructure services. Executives told analysts on a conference call Tuesday that the fourth quarter is generally strong for the businesses remaining within Tyco International.
Covidien health care business and Tyco Electronics, the Tyco spinoffs, are scheduled to report on their earnings on Wednesday and Thursday.
The company has nominal headquarters in Bermuda, but its executive offices are in West Windsor.
The diversified conglomerate agreed to set up a $3 billion cash fund in May to satisfy shareholder claims arising from actions by ex-chief executive L Dennis Kozlowski and other top officers convicted of looting the company and inflating its value.
Tyco completed spin-offs of its health care and electronics units on June 29.
The company, now focused on fire and security and engineered products, reported a loss of $3.55 billion, or $7.18 per share, compared with a profit of $868 million, or $1.68 per share, in the previous year.
Loss from continuing operations was $3.04 billion, or $6.13 per share, versus income from continuing operations of $170 million, or 33 cents per share.
Excluding $3.3 billion related to a legal settlement, charges and other items, Tyco posted income from continuing operations of $277 million, or 55 cents per share, compared with $252 million, or 49 cents per share.
ADVERTISEMENT
Analysts polled by Thomson Financial expected earnings of 48 cents per share.
Shares fell $1.23, more than 2 percent, to $46.77 in midday trading Tuesday.
Quarterly revenue for the period ended June 29 climbed 8 percent to $5.09 billion from $4.72 billion a year ago.
Consensus estimates put sales at $5.01 billion.
ADVERTISEMENT
Tyco said it expects fourth-quarter revenue growth between 6 per cent and 7 per cent, excluding infrastructure services. Executives told analysts on a conference call Tuesday that the fourth quarter is generally strong for the businesses remaining within Tyco International.
Covidien health care business and Tyco Electronics, the Tyco spinoffs, are scheduled to report on their earnings on Wednesday and Thursday.
ADVERTISEMENT
The company has nominal headquarters in Bermuda, but its executive offices are in West Windsor.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
