Tyco Cuts Its Quarter Outlook; Says No New Irregularities
BOSTON
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.
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