Tyco Q3 Profit Soars

(RTTNews) - Swiss security products maker Tyco International Ltd. (TYC) Friday reported a sharp increase in third-quarter profit, as revenues grew with growth across all segments.

For the third quarter ended June 27, net income attributable to shareholders surged to $1.45 billion or $3.11 per share from $135 million or $0.28 per share in the previous year.

Tyco completed divestiture of its ADT Korea security business and remaining interest in Atkore International for a combined $2.2 billion in proceeds. In May end, the firm closed sale of its fire and security services business in South Korea to Carlyle Group (CG) for $1.93 billion.

Income from continuing operations totaled $0.93 per share, compared to $0.24 per share in the prior year.

Excluding special items, earnings per share from continuing operations were $0.54 in the recent period, while the company posted $0.46 per share last year.

On average, 13 analysts polled by Thomson Reuters expected earnings per share of $0.54 for the quarter. Analysts' estimates typically exclude one-time items.

"The investments we have made to expand our product capabilities, combined with continued improvements in our operational execution, drove a 17% increase in earnings per share before special items in the quarter," said Chief Executive Officer George Oliver.

Net revenues for the quarter rose 5 percent to $2.66 billion from $2.54 billion a year ago. Eleven analysts estimated revenues of $2.65 billion for the quarter.

Organic revenue growth was 4 percent, with growth across all segments, led by products with a 12 percent increase year-on-year. Acquisitions contributed 2 percentage points of growth, which was partially offset by the impact of divestitures.

In North America Installation & Services, revenues were $968 million, almost unchanged from last year, as organic revenue growth was offset by the impact of divestitures and changes in foreign currency exchange rates.

Rest of World Installation & Services posted a revenue growth of 3 percent, and Global Products revenues climbed 15.5 percent from last year.

Segment operating income increased 27 percent to $354 million. Segment operating income before special items was $386 million, up 11 percent from a year earlier.

The firm noted that it deployed the proceeds from its recent divestitures to maximize shareholder value, repurchasing 20 million shares over the past three months.

On the NYSE, Tyco shares closed Thursday's trading at $44.81.