Tyco Tops Expectations, Offers Upbeat Guidance
January 29 2016 - 7:40AM
Dow Jones News
Tyco International PLC, which this week struck a deal to merge
with Johnson Controls Inc., said profit dropped in its latest
quarter, due to losses stemming from a divestiture and an early
extinguishment of debt.
The strong dollar remained a headwind for the Ireland-based
company and shaved 6% from Tyco's top line.
Tyco Chief Executive Officer George Oliver noted that
challenging macroeconomic conditions around the world and said the
merger with Johnson Controls, valued at roughly $14.4 billion, will
allow Tyco to grow its footprint. The deal, expected to close by
the end of the year, brings together Johnson Controls's business of
selling heating and air-conditioning equipment for skyscrapers,
schools, hospitals and other structures with Tyco's lines of
security and fire-suppression gear.
In the latest quarter, Tyco saw revenue in its North America
integrated solutions and services unit hold steady at $953 million.
Outside of North America, revenue dropped 11% due mostly to adverse
currency rates.
Overall, the company reported a profit of $76 million, or 18
cents a share, down from $162 million, or 38 cents, a year earlier.
Excluding a losses stemming from a divestiture and an early
extinguishment of debt, among other items, earnings per share rose
to 42 cents from 38 cents.
Revenue slipped 4.1% to $2.38 billion. Analysts had projected 41
cents in adjusted earnings per share and $2.33 billion in revenue,
according to Thomson Reuters.
For the current quarter, Tyco expects to book 44 cents to 46
cents in adjusted per-share profit. Analysts have been looking for
46 cents a share for the March quarter. The company backed its view
for the year, still projecting $2.05 to $2.20 in adjusted earnings
per share.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
January 29, 2016 07:25 ET (12:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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