By Michael Calia
Tyco International Ltd. (TYC) said its revenue slipped in the
most-recent quarter as the company became the latest concern to
report the strengthening U.S. dollar's negative effect on
international business.
The company's profit met analysts' expectations, but revenue
came up short.
Tyco, which provides fire-protection and security services, last
month completed its move to Cork, Ireland. The company has moved to
broaden its business through a series of service expansions and
acquisitions. In December, it made a $329.5 million deal to buy
Industrial Safety Technologies in a bid broaden its fire-protection
business.
Yet, while acquisitions have buoyed its revenue of late, the
company isn't immune to the impact of a stronger U.S. dollar.
"While we continue to deliver strong operating performance, the
sustained strengthening of the U.S. dollar is putting additional
pressure on our results," Chief Executive George R. Oliver said in
a news release.
For the quarter ended Dec. 26, the company reported a profit of
$162 million, or 38 cents a share, down from $270 million, or 57
cents a share. The most-recent period included $58 million in
restructuring and asset-impairment charges.
Excluding certain items, per-share earnings from continuing
operations rose to 49 cents from 42 cents.
Revenue declined less than 1% to $2.48 billion.
Analysts had projected earnings of 49 cents a share and revenue
of $2.5 billion.
Product sales rose 1.4% to $1.49 billion, but service revenue
declined 3.3% to $991 million.
Revenue from Tyco's North American installation and services
business grew slipped slightly to $951 million. Installation and
services revenue from the rest of the world fell about 6% to $917
million, with the stronger dollar weighing on results.
Global products revenue rose about 8% to $611 million with
higher shipments and acquisitions offsetting foreign-currency
impacts.
Write to Michael Calia at michael.calia@wsj.com
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