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Tyco Intl 2Q profit sinks but tops expectations

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 climbed 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.

Last September, the company completed a long-planned separation into three publicly traded companies covering its ADT North America residential security business, flow control products and commercial fire equipment. Results from this year's quarter included a commercial and residential security business not connected with ADT and the fire equipment. Last year's quarter included all the businesses before the split.

Special items totaling $124 million after taxes, or 26 cents per share, also 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.

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 2.5 percent, or 79 cents, to $31.87 in midday trading, while broader trading indexes were largely flat. The stock has traded between $26.17 and $58.12 over the past year.