Summary
Tyco International Ltd. reported a net revenue of $4.46 billion for the third quarter of fiscal year 2012, a 3.9% increase compared to the prior year's quarter, driven by growth across all segments. However, operating income declined to $367 million from $475 million year-over-year, impacted by significant asbestos-related charges and costs associated with the planned 2012 separation of the company into three independent entities. The company also experienced a decrease in net income attributable to common shareholders to $242 million from $359 million. The company is undergoing a significant strategic transformation, including the planned spin-off of its North American residential security business (ADT) and the merger of its flow control business with Pentair. These separation activities are incurring substantial costs, impacting short-term profitability. Despite these headwinds, the company continues to generate positive operating cash flow and maintains a solid backlog.
Financial Highlights
51 data points| Revenue | $1.51B |
| Cost of Revenue | $1.69B |
| Gross Profit | -$173.00M |
| SG&A Expenses | $829.00M |
| Operating Income | $118.00M |
| Interest Expense | $59.00M |
| Net Income | $246.00M |
| EPS (Basic) | $0.53 |
| EPS (Diluted) | $0.52 |
| Shares Outstanding (Basic) | 463.00M |
| Shares Outstanding (Diluted) | 470.00M |
Key Highlights
- 1Net revenue increased by 3.9% to $4.46 billion for the quarter ended June 29, 2012, compared to the prior year period.
- 2Operating income decreased by 22.7% to $367 million, primarily due to a $114 million charge related to asbestos liabilities and $61 million in separation costs.
- 3Net income attributable to common shareholders decreased to $242 million, or $0.51 per diluted share, compared to $359 million, or $0.76 per diluted share, in the prior year.
- 4The company is actively pursuing the separation into three independent entities, with its flow control business set to merge with Pentair.
- 5Cash flow from operations remained strong, totaling $1.83 billion for the nine months ended June 29, 2012.
- 6The company's backlog of unfilled orders increased to $10.19 billion as of June 29, 2012, indicating future revenue potential.
- 7ADT North American Residential saw a 4.2% increase in net revenue, driven by growth in recurring customer revenue.