Tyco returns to profit in 4Q, buys Westfire

Tyco returns to profit in 4Q, board approves raising annual dividend by 13 pct.; buys Westfire

Associated Press

NEWS: Tyco returned to a profit in its fiscal fourth quarter in contrast to a loss a year ago that reflected a debt extinguishment and tax-related items.

The fire protection and security company's board also approved a 13 percent increase to its annual dividend.

DETAILS: Tyco, which completed its separation into three publicly traded companies last year, said Thursday that it bought fire protection services provider Westfire Inc. Financial terms were not disclosed.

Westfire has operations in the U.S., Chile and Peru. Its U.S. operations, which are mostly in the western part of the country, will be combined with Tyco's North American fire services business. Westfire's Chilean operations bolster Tyco's capabilities in the mining industry there. The deal also gives Tyco access to the growing Peruvian market.

The transaction closed on Friday.

Tyco also announced that it signed a deal to sell its Armourguard business in New Zealand and its fire and security business in Fiji. Financial terms were not disclosed.

The company's board approved raising the annual dividend to 72 cents per share from 64 cents per share. It still needs shareholder approval.

NUMBERS: For the period ended Sept. 27, Tyco International Ltd. earned $166 million, or 35 cents per share. That compares with a loss of $419 million, or 91 cents per share, a year ago.

Earnings from continuing operations excluding certain items came to 52 cents per share. This met Wall Street's view.

Revenue edged up 1 percent to $2.76 billion from $2.73 billion, led by increased product sales.

Analysts surveyed by FactSet expected revenue of $2.73 billion.

Tyco earned $536 million, or $1.14 per share, for the year. In the previous year it earned $472 million, or $1.02 per share.

Earnings from continuing operations were $1.12 per share. Adjusted earnings from continuing operations were $1.84 per share.

Full-year revenue increased 2 percent to $10.65 billion from $10.4 billion.

STOCK: The shares closed at $36.73 on Wednesday.

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