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Tyco Intl 2Q profit sinks as charges hurt results

The Associated Press

Tyco International's second-quarter earnings plunged 78 percent in a tough comparison to last year, when the company booked $189 million in income from discontinued operations, and didn't see the big, one-time charges taken this time around.

The Swiss company actually beat Wall Street expectations when one-time costs are removed, and shares jumped nearly 6 percent Friday.

Tyco earned $72 million, or 16 cents per share, in the quarter that ended March 29. That compares to earnings of $323 million, or 69 cents per share, in last year's quarter.

Revenue climbed nearly 3 percent to $2.61 billion.

Adjusted earnings totaled 42 cents per share, not counting charges for restructuring activities and an environmental remediation, among other items.

Analysts surveyed by FactSet expected, on average, earnings of 40 cents per share on $2.6 billion in revenue.

Special items totaling $124 million after taxes, or 26 cents per share, hurt results in the quarter. That included a cost amounting to 12 cents per share tied to an environmental matter at a global products location in Marinette, Wisc. The company needed additional environmental reserves mainly to expand the treatment and disposal of contaminated river sediment.

Tyco also took a $2 million loss in the latest quarter from discontinued operations, compared to the gain in last year.

Revenue from its North American systems installation and services segment came in flat at $953 million, as installation declines offset service growth. Installation and services revenue from the rest of the world climbed 1 percent to $1.08 billion.

Shares of Tyco International Ltd. climbed $1.71, to $32.79 in early trading. The stock has traded between $26.17 and $58.12 over the past year.