By Saabira Chaudhuri
Tyco International Ltd.'s (TYC) fiscal second-quarter earnings
plunged nearly 78% as the company again faced a tough comparison
with a year-earlier period buoyed by income from discontinued
operations, although core earnings rose as revenue edged up.
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.
For the period ended March 29, Tyco reported a profit of $72
million, or 16 cents a share, compared with $323 million, or 69
cents a share, a year earlier. Excluding one-time items, adjusted
earnings from continuing operations were up at 42 cents from 30
cents.
Net revenue rose 2.6% to $2.61 billion.
In January, Tyco had said it expected earnings of 37 cents to 39
cents a share on revenue between $2.55 billion to $2.6 billion.
North America Systems Installation & Services revenue was
flat from a year ago, while Rest of World Systems Installation
& Services revenue edged up 0.7%. Meanwhile, revenue from the
Global Products segment rose 11%.
The operating margin narrowed to 4.7% from 9% a year ago.
Shares closed Thursday at $31.08 and were inactive in recent
premarket trading. The stock has risen 12% in the past 12
months.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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