Industrial conglomerate Tyco International Ltd. reported higher-than-expected quarterly earnings, lifted by strength at its fire protection and valves segments, and said orders had accelerated from prior quarters.
The maker of security systems, valves and fire safety equipment earned a net $334 -million (U.S.), or 71 cents per share, in the first quarter ended Dec. 30, compared with $659-million, or $1.34 per share, a year earlier.
Earnings from continuing operations before special items were 84 cents a share, 5 cents ahead of Wall Street forecasts.
Sales rose 4 per cent to $4.21-billion, below Wall Street estimates of $4.26-billion. Services accounted for 45 percent of total revenue.
Tyco’s biggest division, which makes and services security systems for homes and businesses, posted slightly higher sales, but earnings dipped. The smaller fire protection and flow control businesses showed higher sales and profits.
Tyco, which last year announced a plan to split into three businesses, said that separation was on track for completion by the end of this fiscal year.
The company, which was built through acquisitions, said the split would allow its three businesses -- ADT North America residential security, flow-control products and services, and fire and commercial security -- to have more options for growth.
The split could make it easier for the stand-alone businesses to be acquired, and analysts have identified global industrial names like Schneider Electric, General Electric and United Technologies as potential buyers.
Tyco did not immediately update its profit forecast. It typically does so on its earnings conference call.