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.
