Tyco Cuts Its Quarter Outlook; Says No New Irregularities
Tyco Int’l Ltd. slashed its earnings outlook for the current quarter Sept. 25 and said it would take a charge of up to $2.5 billion that would erase most of the investment in its undersea fiber-optic cable business, Reuters reports.
Edward Breen, Tyco’s new CEO, abandoned the earnings estimates provided by former senior executives, who are accused of orchestrating a massive fraud scheme during the time former CEO Dennis Kozlowski was at the company.
A forensic accounting review at Tyco has not found any new irregularities, Breen said. “At this point we are about 40 percent through the review and have not yet found anything that would require additional disclosure.”
Breen said fiscal fourth-quarter revenue would be about $9.1 billion, or level with the previous quarter. He also said he was confident Tyco will close a $1.5 billion funding gap on obligations coming due late next year.
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!
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!