Tyco Reports Quarterly Earnings Fall
Tyco International Ltd. (Pembroke, Bermuda) stated that its quarterly earnings will fall below the Wall Street consensus estimate. The warning came after an earnings report that showed net income for the first quarter ended December 31, 2001, quadrupling over the year-earlier period, which was hurt by a change in accounting. The company said it expects to earn $0.80 to $0.82 a share in the March quarter.
The second-quarter outlook reflects continued uncertainty about Tyco's electronics business. In the first quarter, soft demand from the computer and telecommunications industry reduced electronics profits by 34 percent, according to the company. Tyco, however, backed its full-year earnings forecast of $3.70 per share, which is slightly above the First Call consensus estimate of $3.67.
Tyco reported first-quarter net income of $1.45 billion, or $0.73 per diluted share, compared with $317.4 million, or $0.18 per diluted share, including a one-time charge for accounting changes, a year earlier. Excluding special items, Tyco reported a profit of $0.74 a share, compared with $0.63 a share in the year-ago quarter. First-quarter revenue surged 25 percent to $10.1 billion from $8.0 billion in the year-ago quarter.