Tyco International profit beats estimates on higher margins
(Reuters) - Tyco International Ltd (TYC.N), a fire safety and security systems maker, reported an adjusted quarterly profit ahead of Wall Street estimates as underlying margins rose.
The company, which split into three businesses last year, reported net income of $74 million, or 16 cents per share, for the second quarter, down from $134 million, or 29 cents per share, a year earlier.
However, excluding $124 million in one-time charges related to a legacy environmental clean-up and the company's restructuring, Tyco earned 42 cents per share, 3 cents ahead of the average analyst estimate.
Of the total charge, almost half was related to an environmental clean-up at a plant in Marinette, Wisconsin.
Tyco's shares, which have gained 6 percent so far this year, were up 4 percent at $32.30 before the bell on Friday.
The company split its operations in September. The North American residential security business is now a separate company, ADT (ADT.N), while its flow control unit was sold to Pentair Ltd (PNR.N).
Operating margins, excluding one-time items, rose 1.5 percentage points to 10.2 percent, the company reported Friday.
Revenue rose 3 percent to $2.61 billion in the quarter ended March 29.
(Reporting by Mridhula Raghavan in Bangalore; Editing by Saumyadeb Chakrabarty)
- North Korea's 'reign of terror' worries South's leader
- Google bus blocked in San Francisco gentrification protest
- Los Angeles sheriff's officials charged in jail misconduct probe
- Putin dissolves state news agency, tightens grip on Russia media
- Chinese hackers spied on Europeans before G20 meeting: researcher