Summary
Tyco International Ltd. reported net revenue of $4.2 billion for the quarter ended December 30, 2011, a decrease of 3.9% compared to the prior year's quarter. This decline was primarily driven by the divestiture of a majority interest in its Electrical and Metal Products business. Despite the revenue decrease, the company saw positive trends in its service revenue, which constituted 45% of total revenue, and experienced growth in product sales within the Tyco Flow Control segment, attributed to strong end-market performance. Operating income saw a significant decrease to $472 million from $706 million in the prior year. This was largely due to a $246 million gain on divestitures in the prior year's quarter, compared to no such gain in the current quarter. The company incurred $32 million in separation costs related to its planned 2012 separation into three independent companies. Tyco's cash position decreased to $1.0 billion, with cash generated from operations at $338 million, while investing activities used $441 million and financing activities used $271 million, including $200 million for share repurchases.
Financial Highlights
51 data points| Revenue | $1.37B |
| Cost of Revenue | $1.58B |
| Gross Profit | -$210.00M |
| SG&A Expenses | $677.00M |
| Operating Income | $186.00M |
| Interest Expense | $58.00M |
| Net Income | $322.00M |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.69 |
| Shares Outstanding (Basic) | 464.00M |
| Shares Outstanding (Diluted) | 469.00M |
Key Highlights
- 1Net revenue decreased by 3.9% to $4.2 billion, primarily due to the sale of the Electrical and Metal Products business.
- 2Service revenue represented 45% of total revenue, indicating a continued shift towards recurring revenue streams.
- 3Operating income decreased significantly to $472 million, impacted by a large gain on divestitures in the prior year's comparable quarter.
- 4The company incurred $32 million in separation costs as it proceeds with its plan to split into three separate entities.
- 5Cash and cash equivalents decreased to $1.0 billion, with operating cash flow of $338 million.
- 6Tyco Security Solutions' recurring revenue grew by 3.6% year-over-year, driven by an increase in customer accounts.
- 7Tyco Flow Control showed strong performance with an 11.7% increase in net revenue, driven by its Valves and Controls and Thermal Controls businesses.