By Melodie Warner
Tyco International Ltd. (TYC) swung to fiscal fourth-quarter
loss on separation and other charges while revenue declined at a
slower-than-expected pace.
The industrial conglomerate spun off its North American security
business in September to create ADT Corp. (ADT). It also split off,
then merged its pipe-and-valve business with pump-filter
manufacturer Pentair Inc. (PNR). What remains of Tyco is focused on
fire-suppression systems for commercial buildings and safety
equipment.
Tyco had lowered its fiscal fourth-quarter fire and security
segment revenue guidance in September to roughly $2.5 billion,
citing certain uncollectible contracts. The company also said it
planned to record a $40 million to $60 million charge to increase
its reserve for the aged receivables and expected to increase its
litigation reserve by $15 million to $17 million.
For the quarter ended Sept. 28, Tyco reported a loss of $419
million, or 91 cents a share, compared with a profit of $397
million, or 84 cents, a year earlier. Excluding items such as the
previously disclosed reserves, debt-extinguishment and separation
costs, adjusted per-share earnings from continuing operations fell
to 33 cents from 43 cents. Revenue dropped 2.5% to $2.73
billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 35 cents a share on revenue of $2.72 billion.
Operating margin fell to 5.6% from 7.9%.
Shares closed Tuesday at $27.33 and were inactive premarket. The
stock has risen 19% so far this year.
Write to Melodie Warner at melodie.warner@dowjones.com
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