By Chelsey Dulaney
Tyco International Ltd.'s adjusted profit topped expectations in
its June quarter, even as revenue continued to be hurt by foreign
currency impacts.
The Cork, Ireland-based fire-protection and security systems
company, which moved its headquarters late last year to Ireland
from Switzerland, does more than half its business outside of the
U.S. The stronger U.S. dollar makes its products more expensive
abroad, and, like other companies that generate a significant
amount of revenue overseas, its top line has been under
pressure.
In a news release, Chief Executive George R. Oliver said the
company was "disappointed" with its top-line growth, though its
cost containment efforts helped drive profit.
Tyco reported a profit of $156 million, or 37 cents a share,
down from $1.45 billion, or $3.11 a share, a year earlier.
The prior year period included a gain on the sale of its stake
in the electrical and metal products business now known as
Atkore.
On a continuing operations basis and excluding special items,
earnings grew to 59 cents from 54 cents a year earlier.
Revenue fell 6.4% to $2.49 billion, with the stronger dollar
representing a 7% headwind.
Analysts polled by Thomson Reuters had forecast per-share
earnings of 56 cents on revenue of $2.52 billion.
For the current quarter, Tyco forecast per-share earnings of 60
cents to 62 cents, just missing analyst expectations for 63 cents a
share in earnings.
For the year ending in September, the company lowered the top
end of its earnings guidance by two cents to a range of $2.23 to
$2.25 a share.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com