Tyco results, outlook fall short of Wall St forecasts
(Reuters) - Tyco (TYC.N), a provider of commercial fire and security systems and services, reported a quarterly net loss on Wednesday, weighed down by costs from the breakup of the diversified Tyco International conglomerate.
In its first financial report as a stand-alone company, Tyco also forecast fiscal 2013 sales and earnings below Wall Street expectations.
Tyco said it expected a 2013 profit of $1.75 to $1.85 per share from continuing operations, below the analysts' average estimate of $1.87.
The company forecast 2013 sales of $10.6 billion to $10.7 billion, while analysts were expecting $10.74 billion.
The new, smaller company wants to increase its revenue from high-margin services, expand in faster-growing emerging markets and focus on cutting costs, Chief Executive Officer George Oliver said.
Tyco reported a net loss of $629 million, or $1.36 per share, for the fourth quarter ended on September 28, compared with a year-earlier profit of $174 million, or 37 cents per share.
Excluding one-time charges, mostly from the split, Tyco posted a profit of 33 cents a share. This missed the analysts' average estimate by 2 cents, according to Thomson Reuters I/B/E/S.
Charges from Tyco's security business in China reduced the quarter's operating income by about $9 million. A company investigation found that revenue from some contracts there had been improperly recorded since 2008, Tyco said, adding that it did not expected further charges.
Quarterly sales fell 3 percent to $2.73 billion, slightly ahead of Wall Street estimates, and Tyco said the year-earlier quarter was a week longer.
Shares of Tyco were up 1 percent at $27.60 in early trading.
As a result of the Tyco International split in September, the North American home security arm, ADT (ADT.N), is now a separate company, while the former flow control unit has merged with Pentair Ltd (PNR.N).
This year's breakup was the second since 2007, leaving Tyco a far smaller company than the vast industrial conglomerate it had once been. Electronics company TE Connectivity (TEL.N) and healthcare company Covidien (COV.N) are also former Tyco businesses.
(Reporting by Nick Zieminski in New York; Editing by Lisa Von Ahn)
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