Tyco Sees Earnings Rise 27%
Tyco Int’l Ltd. continued to put its past troubles behind it as it announced its first quarter earnings Feb. 4. Tyco says its earnings in its 2004 first quarter were up 27 percent from the same period a year ago, and it credited the company’s security and safety division for the increased profits.
Tyco had earnings of $719 million in the first quarter compared to a $566 million quarter in 2003. Its revenue of $9.7 billion was a 9-percent increase. “We had a good first quarter, driven primarily by … improved operating profit in our fire and security segment,” says Tyco Chairman and CEO Ed Breen. “We have a great deal of work and opportunity ahead of us as we continue to improve operating margins and transform Tyco into a world-class operating company.”
At the close of 2003, Tyco announced a plan to divest itself of at least 50 of its businesses – half of which would be in the Fire and Security segment. Breen says significant progress has been made in the sales, but still hasn’t revealed just which divisions are up for sale.
“We are actively involved in approximately 20 potential transactions, representing about half the revenue we have targeted for divestiture,” Breen says.
With a restructuring continuing, the Fire and Security segment of the company saw a 16-percent increase in income to start 2004 compared to the first quarter of 2003, earning $252 million with revenues of $3 billion. Tyco says the segment, which includes ADT, SimplexGrinnell and Sensormatic, saw a higher demand in the commercial security market that was partially offset by continuing weakness in nonresidential construction.
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