* 33-cent-a-share profit before items misses analysts' view
by 2 cents
* Sales down 3 percent to $2.73 billion
* Tyco expects fiscal 2013 earnings per share of $1.75 to
* Stock up 1 percent
By Nick Zieminski
Nov 14 Tyco, 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
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
Tyco reported a net loss of $629 million, or $1.36 per
share, for the fourth quarter ended on Sept. 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
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, is now a
separate company, while the former flow control unit has merged
with Pentair Ltd.
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 and
healthcare company Covidien are also former Tyco