Tyco Int'l 2Q profit falls on discontinued operations

TRENTON — Tyco International Ltd. said Thursday its fiscal second-quarter profit tumbled 67 percent, as it had substantial profits from now-discontinued operations a year ago.

The diversified manufacturer, which split into three companies last summer, said net income in the quarter ended March 28 fell to $280 million, or 57 cents per share, compared with $835 million, or $1.66 per share, a year earlier.

Tyco said income from continuing operations rose to $273 million, or 56 cents per share. Excluding some charges and a legal settlement, earnings were 67 cents per share, the company said.

Tyco, which is nominally based in Bermuda but has operational headquarters in West Windsor, N.J., reported that revenue climbed 8 percent, to $4.87 billion from $4.49 billion. Favorable currency exchange rates boosted revenues by about 5 percent.

Analysts surveyed by Thomson Financial expected earnings of 57 cents per share, which typically excludes one-time charges, and sales of $4.94 billion.

The company, best known for its ADT home alarm systems, raised its profit forecast for its 2008 fiscal year, to a range of $2.65 to $2.75, from its January forecast of $2.60 to $2.70 per share.

In the second quarter, the ADT World business reported revenues of $1.97 billion, up 4 percent, while the flow control business, which makes industrial valves and thermal controls, saw revenues jump 17 percent, to $1.02 billion. Revenues in the electrical and metal products segment rose 13 percent to $542 million, and revenues increased 5 percent to $861 million in the fire protection services business.

For the first six months, Tyco reported net income of $643 million, or $1.31 per share, down 60 percent from $1.63 billion, or $3.23 per share, in the year-ago period. Income from continuing operations totaled $633 million, nearly double the $322 million in the first half of fiscal 2007. Revenues totaled $9.7 billion, up 10 percent from $8.83 billion.

Last June, the conglomerate split into the current Tyco International, Tyco Electronics Ltd. and health products company Covidien Ltd.

On Wednesday, Tyco agreed to pay New Jersey $73.3 million to resolve state charges of securities fraud involving former management of the diversified manufacturer. The payment will be shared by the three new businesses.

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