Restructuring Costs Put Tyco Int’l in Red; ADT Worldwide Rises 6 Percent
BERMUDA
Tyco Int’l, which has its fire and security business based in Boca Raton, Fla., posted a third-quarter loss of $3.55 billion on costs to settle a shareholder lawsuit and split into three parts.
The net loss of $7.18 a share compared with net income of $868 million, or $1.68, a year earlier, the Bermuda-based company announced. Sales rose 7.8 percent to $5.09 billion, led by the valve unit, which serves the energy industry.
At ADT, revenue rose 6 percent to $1.09 billion. Profit declined 15 percent to $205 million because of restructuring costs and goodwill impairment, according to the company. Excluding those items, profit rose 8 percent on lower attrition rates, or rates at which subscribers to security systems disconnect their service.
Tyco began recording the life of ADT contracts in North America as 15 years on its books to better reflect the lower attrition rates, Chief Financial Officer Christopher Coughlin said on a recent earnings call. Previously, contracts were booked as generating revenue for 10 to 14 years, he said.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!
Related Content
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add sales to your bottom line.
A free subscription to the #1 resource for the residential and commercial security industry will prove to be invaluable. Subscribe today!
