Tyco Reports 5% Revenue Growth in Q3, ‘Strong’ Products Performance
The firm’s North American Installation & Services business generated $968 million.
NEUHAUSEN, Switzerland – Tyco reported Friday 93 cents in GAAP diluted earnings per share (EPS) from continuing operations for the fiscal third quarter of 2014 and diluted EPS from continuing operations before special items of 54 cents. Revenue in the quarter increased 5% versus the prior year to $2.7 billion. Organic revenue grew 4% in the quarter, with growth across all segments, led by products with a 12% increase from the prior year quarter. Acquisitions contributed 2 percentage points of growth, which was partially offset by the impact of divestitures.
“The investments we have made to expand our product capabilities, combined with continued improvements in our operational execution, drove a 17% increase in earnings per share before special items in the quarter,” Tyco CEO George Oliver said in a press release. “The pick-up in revenue growth we started to see last quarter continued, resulting in strong organic growth of 4%. In addition, we moved quickly to deploy the proceeds from our recent divestitures to maximize shareholder value, repurchasing 20 million shares over the past three months.”
Tyco’s North American Installation & Services business generated $968 million, about the same as 2013. The Installation & Services segment for the rest of the world brought in $1 billion in revenue for a 3% increase compared to the prior year. Organic revenue growth of 2% consisted of 4% growth in installation and 1% growth in service revenue. Tyco’s Global Products business revenue was $693 million, an increase of 15.5% in the quarter that included a 3% benefit from acquisitions. Organic revenue grew 12%, with strong growth across Life Safety, Security, and Fire Protection products.
During the quarter, Tyco also completed the divestiture of its ADT Korea security business and remaining interest in Atkore Int’l for a combined $2.2 billion in proceeds.
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