PEMBROKE, Bermuda – Tyco says it has recovered from a large loss in 2002 and took in a net profit for its 2003 fiscal year as it reported its quarterly and full-year earnings on Nov. 4. For 2003, Tyco reports earnings of $979.6 million (49 cents per diluted share) compared to a loss of $9.2 billion ($4.62 per share) in 2002.
In its earnings announcement, Tyco also revealed it plans to divest itself of at least 50 of its businesses – half of which will be in the Fire and Security segment. In addition, Tyco also announced a restructuring of its Fire and Security division that will include the release of 5,000 employees.
While saying it isn’t in the best interest of his company to reveal which units of Tyco’s Fire and Security business will be included among the divestitures, Tyco CEO Ed Breen said in a conference call they are part of Tyco’s plans to focus solely on its operations. “We view these as important steps toward building the foundation we need,” Breen says. “They are designed to increase the focus on our core operations and exiting certain operations that clearly don’t fit in Tyco going forward.”
Tyco is still recovering from a scandal involving its former chief executives. The company’s former CEO Dennis Kozlowski and CFO Mark Swartz are on trial for allegedly looting the company of $600 million.
