Tyco Quarterly Profit Falls, Revenue Edges Up

(RTTNews) - Swiss security products maker Tyco International Ltd. (TYC) Friday reported a sharp decline in third-quarter profit, as prior-year comparatives were benefited from a gain from discontinued operations. Quarterly revenues edged up 1 percent, with a rise in Service revenue.

Looking ahead, the company said it aims increasing its service revenue, and driving productivity.

Chief Executive Officer George Oliver said, "Our results mark another strong quarter of operational performance, reflecting the continued strength of our recurring and service revenue base as well as sustained momentum in our Global Products business."

Last month, Tyco agreed to buy Exacq Technologies, a developer of video management systems for security and surveillance applications, for $150 million in cash. Through the acquisition, the firm intends to expand its security product offerings and strengthen position in the market.

In the third quarter, net income attributable to the company's shareholders fell to $135 million or $0.28 per share from $246 million or $0.52 per share in the previous year.

Earnings from continuing operations in the third quarter of 2012 were $0.14 per share. The prior-year quarter had an income from discontinued operations totaling $181 million.

Excluding special items, earnings per share from continuing operations for the recent quarter were $0.50, while the company posted $0.47 per share a year earlier.

On average, 16 analysts polled by Thomson Reuters expected earnings per share of $0.48 for the quarter. Analysts' estimates typically exclude one-time items.

Net revenues for the quarter edged up 1 percent to $2.68 billion from the prior year's $2.66 billion. Analysts estimated revenues of $2.71 billion for the quarter. Organic revenue growth was 1 percent, with 5 percent increase in products, 3 percent rise in service, and a 4 percent decline in installation revenue.

Revenues from product sales remained unchanged from last year at $1.51 billion. Meanwhile, Service revenue improved to $1.17 billion from $1.14 billion in the preceding year.

North America Systems Installation & Services segment revenues declined 4 percent, while Rest of World Systems Installation & Services revenue improved 2 percent from a year ago. Revenues from Global Products were up 7 percent.

TYC closed Thursday's regular trading at $35.15 on the NYSE.