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UPDATE 2-Tyco results, outlook fall short of Wall St forecasts
November 14, 2012 / 11:39 AM / 5 years ago

UPDATE 2-Tyco results, outlook fall short of Wall St forecasts

* 33-cent-a-share profit before items misses analysts’ view by 2 cents

* Sales down 3 percent to $2.73 billion

* Tyco expects fiscal 2013 earnings per share of $1.75 to $1.85

* Stock up 1 percent

By Nick Zieminski

Nov 14 (Reuters) - Tyco, a provider of commercial fire and security systems and services, reported a quarterly net loss on Wednesday, weighed down by costs from the breakup of the diversified Tyco International conglomerate.

In its first financial report as a stand-alone company, Tyco also forecast fiscal 2013 sales and earnings below Wall Street expectations.

Tyco said it expected a 2013 profit of $1.75 to $1.85 per share from continuing operations, below the analysts’ average estimate of $1.87.

The company forecast 2013 sales of $10.6 billion to $10.7 billion, while analysts were expecting $10.74 billion.

The new, smaller company wants to increase its revenue from high-margin services, expand in faster-growing emerging markets and focus on cutting costs, Chief Executive Officer George Oliver said.

Tyco reported a net loss of $629 million, or $1.36 per share, for the fourth quarter ended on Sept. 28, compared with a year-earlier profit of $174 million, or 37 cents per share.

Excluding one-time charges, mostly from the split, Tyco posted a profit of 33 cents a share. This missed the analysts’ average estimate by 2 cents, according to Thomson Reuters I/B/E/S.

Charges from Tyco’s security business in China reduced the quarter’s operating income by about $9 million. A company investigation found that revenue from some contracts there had been improperly recorded since 2008, Tyco said, adding that it did not expected further charges.

Quarterly sales fell 3 percent to $2.73 billion, slightly ahead of Wall Street estimates, and Tyco said the year-earlier quarter was a week longer.

Shares of Tyco were up 1 percent at $27.60 in early trading.

As a result of the Tyco International split in September, the North American home security arm, ADT, is now a separate company, while the former flow control unit has merged with Pentair Ltd.

This year’s breakup was the second since 2007, leaving Tyco a far smaller company than the vast industrial conglomerate it had once been. Electronics company TE Connectivity and healthcare company Covidien are also former Tyco businesses.

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