Tyco Tops Expectations, Offers Upbeat Guidance

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 [e-mail]

(END) Dow Jones Newswires

January 29, 2016 07:25 ET (12:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.