Tyco's 2nd-Quarter Net Drops 78%, But Core Earnings Rise

   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 [e-mail]

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