Tyco profit tops Wall Street forecasts
(Reuters) - Industrial conglomerate Tyco International Ltd TYC.N reported higher-than-expected quarterly earnings on Wednesday, but gave a fiscal 2012 outlook slightly below Wall Street forecasts.
The maker of security systems, valves and fire safety equipment, forecast fiscal 2012 earnings from continuing operations of $3.50 to $3.60 a share on sales of $17.5 billion to $17.7 billion.
Analysts on average were expecting a profit of $3.62 per share, excluding one-time items, on $17.9 billion in revenue, according to Thomson Reuters I/B/E/S.
"They tend to be conservative," said analyst Brian Langenberg of Langenberg & Co. Tyco's flow control business, which makes valves, performed better than expected during the quarter, he added.
Tyco posted net income of $400 million, or 85 cents per share, for the fourth quarter ended September 30, compared with $266 million, or 53 cents per share, a year earlier.
Earnings before special items were 92 cents a share, beating Wall Street estimates by 6 cents, according to Thomson Reuters I/B/E/S.
A lower share count helped boost earnings per share. The company spent $1.3 billion on stock buybacks during the year and has continued repurchasing shares since the end of the quarter.
Sales rose 4 percent to $4.69 billion, above analysts' forecasts of $4.51 billion.
Revenue was up 11 percent in Tyco's security business, which includes ADT, its biggest segment, but operating profit jumped 30 percent, helped in part by improved demand from commercial customers. Continued...