Tyco Posts Upbeat Q2 Earnings, But Lowers FY Outlook

Tyco International plc (Ireland) Ordinary Share TYC reported better-than-expected earnings for the second quarter, but the company lowered its forecast for the year. Tyco now expects full-year earnings of $2.23 to $2.27 per share, versus its earlier forecast of $2.30 to $2.40 per share. Analysts had projected earnings of $2.33 per share. For the current quarter, Tyco projects earnings of $0.55 to $0.57 per share. The Mahon, Ireland-based company reported a quarterly profit of $167 million, or $0.43 per share, versus a year-ago profit of $207 million, or $0.41 per share, a year earlier. Excluding items, the company's profit increased to $0.55 per share from $0.47 per share. Its revenue slipped 2 percent to $2.43 billion. However, analysts were expecting earnings of $0.49 per share on revenue of $2.439 billion. Revenue in Tyco's North America installation segment gained around 1 percent to $944 million, while. Revenue from the company's global products business gained 5.6 percent to $639 million. Tyco's board approved its plans to lift its quarterly dividend by 14 percent to $0.21 per share. The average estimate among 7 Estimize users was for earnings of $0.50 per share and revenue of $2.44 billion. "We continued to deliver strong profitability in the second quarter, with earnings per share growing 17% year over year before special items and segment operating margin improving 50 basis points on a normalized basis," said Tyco Chief Executive Officer George R. Oliver. "Excluding the impact of foreign currency exchange rates, we grew revenue 4% in the quarter through a combination of organic growth and acquisitions." Tyco's shares rose 0.16 percent to $42.66 in after-hours trading.