By Anna Prior
Tyco International Ltd. (TYC) said its fiscal second-quarter
earnings more than doubled as the fire and safety-products company
cut expenses and saw a slight increase in revenue.
The company's board also approved an additional $1.75 billion
authorization for share buybacks, bringing the total authorization
to $2 billion.
Tyco spun off its North American security business in 2012 to
create ADT Corp. It also split off, then merged its pipe-and-valve
business with pump-filter manufacturer Pentair Inc. What remains of
Tyco is focused on fire-suppression systems for commercial
buildings and safety equipment.
Last month, Carlyle Group said it had agreed to acquire Tyco's
South Korean security business for $1.93 billion in cash. With that
move, Tyco sharpened its focus on its core business.
For the quarter ended March 28, Tyco reported a profit of $207
million, or 44 cents a share, up from $72 million, or 16 cents a
share, a year earlier. Per-share earnings from continuing
operations were up at 39 cents from 11 cents. Excluding items such
as restructuring charges and tax items, per-share earnings from
continuing operations rose to 45 cents from 37 cents.
Revenue edged up 0.5% to $2.49 billion.
Analysts polled by Thomson Reuters expected earnings of 41 cents
a share on revenue of $2.5 billion.
Selling, general and administrative expenses fell 17%, while
restructuring and asset impairment charges slipped 68%.
Excluding the South Korean security business, systems
installation and services revenue slipped 1.5% in North America and
was flat compared to the year-ago period for the rest of the world.
Global products revenue increased 4.7%.
Shares closed Thursday at $42.21 and were inactive premarket.
The stock has risen 36% in the last 12 months.
Write to Anna Prior at anna.prior@wsj.com
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