Tyco International (NYSE: TYC) said that its income from continuing operations dropped 21 percent to $145 million in the three-month period January to March from $183 million in the previous year quarter. Similarly, its earnings from continuing operations also fell 23 percent to $0.33 a share from $0.43 a share in the comparable period.
On an adjusted basis, Tyco's income from continuing operations fell 11 percent to $192 million in the second quarter from $215 million while earnings dipped 10 percent to $0.45 a share from $0.50 a share in the year-ago quarter. Street analysts' predicted the company to earn $0.45 a share.
The company's revenue for the three-month period was $2.33 billion, down 4 percent from $2.43 billion in the previous year quarter. This was slightly lower than the Street estimations of $2.34 billion.
Tyco's CEO George Oliver commented, "I am pleased with the progress on our planned merger with Johnson Controls to create the global leader in building products and technology, integrated solutions and energy storage. Our integration teams are making great strides, and I am more excited and confident than ever about the value creation potential of the merger for customers, shareholders and employees."
Oliver added, "While ongoing sluggish economic conditions in key sectors put pressure on our short-cycle product markets in the second quarter, our continued focus on productivity initiatives enabled our Integrated Solutions & Services teams to deliver better than expected margin performance. We have made significant improvements in the fundamentals of our business. We are investing for future growth through a dedicated focus on service and installation within our North American fire and security business, continued product innovation and our commercial excellence initiatives. As a result of these initiatives, our order pipeline and backlog continue to build, which positions us well for increased growth in the second half."
Moving ahead, Tyco slashed its top end of the earnings forecast to $2.05-$2.10 a share from $2.05-$2.20 a share, before any special items, for the full year. Analysts expect the company to report earnings of $2.09 a share, which is above the mid-point of the revised outlook and missed expectations.
On Thursday, the stock shed 0.78 percent.
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