Tyco Revenue Falls as Currency Impact Hurts
November 13 2015 - 8:38AM
Dow Jones News
By Ezequiel Minaya
Tyco International Ltd. on Friday reported adjusted profit in
line with expectations for its fiscal fourth quarter ended in
September, even as revenue continued to be hurt by foreign currency
impact.
Revenue fell 7.3% compared with the same period last year,
mostly due to a 7% negative impact attributed to the stronger U.S.
dollar.
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.
For the year, revenue fell 4.2% to $9.9 billion. Organic revenue
growth of 1% and acquisitions growth of 2% were offset by a 6%
negative impact from foreign exchange volatility.
"Despite slower growth in the industrial and energy-related end
markets, we continue to see pockets of strength across the globe,
led by U.S. nonresidential construction markets," Chief Executive
George R. Oliver said in a news release. "We anticipate these
market conditions to continue in fiscal 2016."
The company said that adjusted earnings in the coming fiscal
year would now reflect restructuring and repositioning charges of
between 14 cents and 19 cents per share. Tyco sees earnings for the
year in the range of $2.05 to $2.20 per share. The estimate is
below analysts' forecast of $2.22. Adjusted full-year earnings for
this year was $1.74 a share, under analysts' estimates of
$1.78.
Overall for the latest quarter, the company posted a profit of
$66 million, or 15 cents a share, up from a loss of $89 million, or
a loss of 20 cents a share a year earlier. On an adjusted basis the
company posted earnings of 61 cents from continuing operations.
Revenue fell 7.3% to $2.51 billion.
Analysts had expected adjusted earnings of 61 cents on revenue
of $2.53 billion.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
November 13, 2015 08:23 ET (13:23 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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