Tyco Reports Decreased Revenue in Fiscal First Quarter of 2016
Tyco CEO focused on building business for long term, citing the planned merger with Johnson Controls.
CORK, Ireland — Tyco on Friday reported 17 cents in GAAP diluted earnings per share (EPS) from continuing operations for the fiscal first quarter of 2016.
Diluted EPS from continuing operations before special teams of 42 cents exceeded previous guidance of 40 cents. Revenue of $2.4 billion in the quarter decreased 4% versus the prior year, primarily due to a 6% negative impact of the stronger U.S. dollar against foreign currencies, according to the company. Organic revenue was flat in the quarter versus previous guidance of a decline of 1% to 3%. Acquisitions contributed 3 percentage points of growth, which was partially offset by the impact of a divestiture.
“We are off to a solid start to our fiscal year. Although we operated under challenging macro-economic conditions around the globe, we continued to execute well on what was within our control,” said Tyco Chief Executive Officer George R. Oliver. “Despite this environment, we remain focused on building our business for the long term, and the announcement of our planned merger with Johnson Controls is a perfect example. I am thrilled with the prospect of bringing the unique strengths of two great companies together to deliver best-in-class building technologies and services to customers around the world.”
The new of the planned merger between Tyco and Johnson Controls was announced on Monday in a deal worth reportedly $20 billion.
“We believe this transaction will allow us to better capture opportunities created by increased connectivity in homes, buildings and cities,” Oliver said. “Joining forces with Johnson Controls pairs our leading established businesses with robust innovation pipelines and extensive global footprints to deliver greater value to customers, shareholders and employees of both companies.”
- Check out the complete earnings report for the quarter
RELATED: Lessons Security Companies of All Sizes Can Learn From Tyco-JCI Merger
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